Does Negative News Reporting on the Economy Get Reflected in Companies’ Business Situation?
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Date
2015-06
Publication Type
Working Paper
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yes
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Abstract
We examine the effects of negative economic news reporting on companies’ self-assessment of their business situation. In order to measure this negativity effect, we introduce a new daily business indicator for the Swiss manufacturing sector and examine the influence of newspaper articles, which we scan for particular keywords, on a daily basis. We use OLS and VAR models to examine the mutual influence of negative news and the business situation of private companies. The results show a negative influence of news reporting on the self-assessment of the companies surveyed, also when controlling for the overall economic situation. However, the negative effect is not stable in all our set-ups.
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published
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Volume
388
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KOF Swiss Economic Institute, ETH Zurich
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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
Notes
See updated version 2017: http://e-citations.ethbib.ethz.ch/view/pub:187878.