Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 18, 2020 erstellt
Beschreibung:
We use the 2007 acquisition of Dow Jones & Co. by News Corporation to study whether the perception of a news source's political affiliation affects its credibility and financial market impact. Following 2007, the price of Republican- (Democrat-) aligned stocks becomes less sensitive to positive (negative) Dow Jones Newswires (DJNW) sentiment, consistent with the market perceiving a pro-Republican bias. There is, however, no evidence of an actual bias in DJNW, suggesting a loss of price informativeness. Consistent with this view, a trading strategy exploiting the attenuated reaction to DJNW news earns abnormal returns following 2007