TOPIC: The Perils of Crying "Fake News"
Time: March 6th, 2019 Wednesday 14:00 - 15:30 pm
Organizer: Chinese Academy of Finance and Development
Biography: Dr. Mancy Luo is an Assistant Professor of Finance at RSM Erasmus university. Her research interests are in asset management and political economy. She has been a visiting scholar at Mcgill University and Columbia University. She has received several research grants, including Research Talent grant from the Dutch National Science Foundation (NWO) and Inquire Europe grant. She holds a PhD degree in Finance from Tilburg University. Her work has been the winner of 4thSUERF/UniCredit & Universities Research Prize in 2016 and has been presented in manyconferences worldwide.
Abstract: We use the 2007 acquisition of Dow Jones Newswires (DJNW) by News Corporation as an experiment, to study whether the perception of a news source’s political affiliation affects its credibility and impact on the financial market. Following the acquisition, the prices of “Republican” stocks (stocks of firms making larger political contributions to the Republican party) become less sensitive to sentiment in DJNW news pieces, relative to “Democrat” stocks. The effect is driven by the reaction to positive commentary about Republican stocks and negative about Democrat stocks, and by investors with a Democrat lean. We find, however, no evidence of an actual bias in DJNW sentiment following 2007, suggesting that the market fails to incorporate valuable information in stock prices. Consistent with this view, a trading strategy that tracks DJNW news earns abnormal returns over the period following the acquisition. Finally, we find that the attenuated response to DJNW news has material implications for asset price efficiency, and associates with a lower firm-specific information content of stock prices. These findings suggest that crying ‘fake news’ and more in general allegations of a bias in the media can be as relevant as biased news themselves.
题目：The Perils of Crying "Fake News"
简介：罗曼茜博士现任鹿特丹伊拉斯姆斯大学（RSM Erasmus university）助理教授。她博士毕业于荷兰蒂尔堡大学，曾在麦吉尔大学（Mcgill University）和哥伦比亚大学商学院（Columbia University）访学。主要研究方向为资产管理和政治经济学。她曾获得由荷兰科学研究组织颁发的杰出人才研究基金，以及Inquire Europe奖。她的研究成果曾获2016年第四届SUERF/UniCredit & Universities研究奖金并收录于各种会议中。
时间：2019年3月6日（星期三）下午14:00 – 15:30
