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News co-mention and stock returns correlation

Research output: Conference PapersRGC 31A - Invited conference paper (refereed items)Yespeer-review

Abstract

News is a major source of information where investors gather to make investment decision. When two firms are frequently mentioned together in news, investors are likely to pay keen attention to both companies. The frequently co-mentioned companies may form an information habitat. According to information diffusion theory in finance, firms in the same habitat are likely to exhibit returns comovement. Taking into account of coverage and persistency of co-mentioned news, we construct a dynamic industry classification scheme with the hope that it can outperform traditional approaches to classify firms into relevant industries.
Original languageEnglish
Publication statusPublished - 16 Jun 2017
Event1st International Conference on Econometrics and Statistics (EcoSta 2017) - The Hong Kong University of Science and Technology, Hong Kong, China
Duration: 15 Jun 201717 Jun 2017
Conference number: 1st
http://cmstatistics.org/EcoSta2017/

Conference

Conference1st International Conference on Econometrics and Statistics (EcoSta 2017)
Abbreviated titleEcoSta 2017
PlaceChina
CityHong Kong
Period15/06/1717/06/17
Internet address

Bibliographical note

Research Unit(s) information for this publication is provided by the author(s) concerned.

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