Time-variation in the Impact of News Sentiment

Utilizing firm-specific news sentiment data provided by Thomson Reuters News Analytics, I construct aggregate measures to examine the relationship between news sentiment and stock market returns over the period 2004–2010. I find a highly significant relationship between aggregated measures of news s...

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Bibliographic Details
Main Author: Smales, Lee
Format: Journal Article
Published: Elsevier BV 2015
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/17516
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author Smales, Lee
author_facet Smales, Lee
author_sort Smales, Lee
building Curtin Institutional Repository
collection Online Access
description Utilizing firm-specific news sentiment data provided by Thomson Reuters News Analytics, I construct aggregate measures to examine the relationship between news sentiment and stock market returns over the period 2004–2010. I find a highly significant relationship between aggregated measures of news sentiment and stock returns that fluctuates over time and by industry. I identify a link between the time-variation of news sentiment impact and industry beta, and determine that levels of investor sentiment (proxied by VIX) play an important role in explaining this variation.
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spelling curtin-20.500.11937-175162019-02-19T04:26:26Z Time-variation in the Impact of News Sentiment Smales, Lee sentiment Time-variation Industry portfolios VIX Stock Returns Utilizing firm-specific news sentiment data provided by Thomson Reuters News Analytics, I construct aggregate measures to examine the relationship between news sentiment and stock market returns over the period 2004–2010. I find a highly significant relationship between aggregated measures of news sentiment and stock returns that fluctuates over time and by industry. I identify a link between the time-variation of news sentiment impact and industry beta, and determine that levels of investor sentiment (proxied by VIX) play an important role in explaining this variation. 2015 Journal Article http://hdl.handle.net/20.500.11937/17516 10.1016/j.irfa.2014.11.019 Elsevier BV fulltext
spellingShingle sentiment
Time-variation
Industry portfolios
VIX
Stock Returns
Smales, Lee
Time-variation in the Impact of News Sentiment
title Time-variation in the Impact of News Sentiment
title_full Time-variation in the Impact of News Sentiment
title_fullStr Time-variation in the Impact of News Sentiment
title_full_unstemmed Time-variation in the Impact of News Sentiment
title_short Time-variation in the Impact of News Sentiment
title_sort time-variation in the impact of news sentiment
topic sentiment
Time-variation
Industry portfolios
VIX
Stock Returns
url http://hdl.handle.net/20.500.11937/17516