Impact Of News Announcements Research Articles

BEHAVIOR OF FINANCIAL MARKETS AROUND NEWS ANNOUNCEMENTS: A REVIEW BASED ON BIBLIOMETRIC ANALYSIS OF SCIENTIFIC FIELDS

This study analyses existing literature about investor behavior around news an- nouncements. We use bibliometric analysis to explore the evolution and development in this theme. We analyze 815 research articles collected from Scopus database from 1992 to 2021 through bibliometric measurements and social networks using Vosviewer. We Önd that the number of studies examining investor behavior in response to news announcements has been steadily increasing over time, particularly since 2008. Further, the study highlighted ináuential authors, countries, institutions, impactful journals, and top articles in this theme. To identify the research gap to propose agenda for future research, the study conducted clustering and factor analysis of main studies and themes in this literature. Majority of the studies has focused on the impact of news announcements on stock market and individual investor sentiment, particularly herd behavior of investors. Even though many researchers tried to investigate di§erent aspects of investor behavior around corporate and macroeco- nomic news announcements, to the best of our knowledge, no studies have been conducted to evaluate the performance and trends in this theme. This study signiÖcantly contributes to the Önancial literature dedicated to news announcements by analyzing the trend and pattern of publication in this theme and helping researchers and other participants in the Önancial market to get insight in this theme and to conduct future studies

News and sovereign CDS markets: evidence from the Euro area

The purpose of this paper is to trace the impact of news announcements on sovereign five-year credit default swaps (CDS) spreads of four distressed countries in the euro area (Ireland, Italy, Portugal, and Spain) with daily data spanning the period May 17, 2012 to May 23, 2014. We apply an analysis based on asymmetric conditional volatility modelling methodology. The empirical analysis provides interesting evidences. The paper finds that the influence of country-specific news variable on the dynamics of the sovereign CDS spreads was confirmed. Moreover, when considering that news originated only from distressed countries, the domestic and cross-border effects of news are restricted to unfavourable news. In particular, we find that more bad news in one country leads to an increase in its own CDS spreads and those associated with other countries confirming thus the presence of a news spillover phenomenon. In contrast, we make evidence of the spillovers of good news from the non-distressed countries onto the other countries. Clearly, the sovereign CDS markets' responses indicate that the split into bad and good news has largely been done correctly.