We suggest that dispersion in news sentiment, representing the dispersion in informative M&A performance forecasts, effectively captures M&A information uncertainty, disseminates information about transaction risks, and enhances investors' ability to discern high-risk acquisition attempts. We...

Does media coverage of a firm have a causal effect on the volatility of its stock price and, if so, is this of aggregate importance? This paper identifies a robust link between media coverage in the Financial Times print newspaper and a firm's intra-day stock price volatility. This effect is not...

Does media coverage of a firm have a causal effect on the volatility of its stock price and, if so, is this of aggregate importance? This paper identifies a robust link between media coverage in the Financial Times print newspaper and a firm’s intra-day stock price volatility. This effect is...

Using randomized control trials (RCTs) applied over time in different countries, we study how the economic environment affects how agents learn from new information. We show that as inflation has recently risen in advanced economies, both households and firms have become more attentive and...

Using randomized control trials (RCT) applied over time in different countries, we study how the economic environment affects how agents learn from new information. We show that as inflation has risen in developed economies, both households and firms have become more attentive and informed about...

We introduce a novel method for training computer algorithms to measure news sentiment. Our approach leverages human-coded sentiment scores from over 200,000 newspaper articles to teach the computer to select words, word combinations, and their linear weights. In an out-of-sample test, examining...

We propose news sentiment as a new explanatory variable for interest rates. Using articles related to interest rates, inflation, and the labor market we demonstrate the in-sample predictive power of sentiment on the short-rate applying the Taylor rule and a threshold autoregressive model. This...