Does Negative News Reporting on the Economy Get Reflected in Companies’ Business Situation?


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Author / Producer

Date

2017-01

Publication Type

Working Paper

ETH Bibliography

yes

Citations

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Abstract

We examine the eects of negative economic news reporting on companies' self-assessment of their business situation. In order to measure this negativity eect, we introduce a new daily business indicator for the Swiss manufacturing sector and examine the in uence of newspaper articles, which we scan for particular keywords, on a daily basis. We use OLS and VAR models to examine the mutual in uence of negative news and the business situation of private companies. The results show a negative in uence of news reporting on the self-assessment of the companies surveyed, also when controlling for the overall economic situation. However, the negative eect is not stable in all our set-ups.

Publication status

published

External links

Editor

Book title

Volume

388 (Update)

Pages / Article No.

Publisher

KOF Swiss Economic Institute, ETH Zurich

Event

Edition / version

Updated version, January 2017

Methods

Software

Geographic location

Date collected

Date created

Subject

PRESS + NEWSPAPERS; Business Situation; BUSINESS ORGANIZATIONS; WIRTSCHAFTLICHE ASPEKTE + FINANZIELLE ASPEKTE (ALLGEMEIN); PRODUCTION (BUSINESS ECONOMICS); News; ECONOMIC ASPECTS + FINANCIAL ASPECTS (GENERAL); NEWS COVERAGE (PRESS); UNTERNEHMENSORGANISATIONEN; SCHWEIZ (MITTELEUROPA). SCHWEIZERISCHE EIDGENOSSENSCHAFT; BERICHTERSTATTUNG (ZEITUNGSWESEN); SWITZERLAND (CENTRAL EUROPE). SWISS CONFEDERATION; WIRTSCHAFTSLAGE; PRODUKTION (BETRIEBSWIRTSCHAFT); ECONOMIC SITUATION; Media Data; ZEITUNGSWESEN + PRESSE + ZEITUNGEN

Organisational unit

02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute check_circle

Notes

See also: http://e-citations.ethbib.ethz.ch/view/pub:160590.

Funding

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