Emotions engendered in media impact investor decision-making

Ron Bird  |  Investment Management Research Program  |  19 February 2020  |  0.25 CE

The media has come under increasing criticism in recent times for the role it plays in shaping our opinions and behaviour. New research investigates whether the choice of words used in the news and social media is important in shaping the investment behaviour of individuals, so impacting on pricing within markets. It finds that media sources generate emotions that transmit to individuals and so influence their investment decisions. It is not apparent whether this is a good or bad thing, but what is certain is that it results in a departure f...

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