Financial News Production
Dr. Hu establishes that financial news production can be strongly influenced by factors unrelated to the arrival of, and demand for, information. Fluctuations in real economic activity, such as advertising, generate cash-flow shocks to the media sector, which reacts by changing news quantity and quality. Such endogenous dynamics in news production then shift the levels of uncertainty and information asymmetry about firms, affecting real and financial outcomes. Implementing a within-firm estimator on a comprehensive data set of media advertising revenue, news, and job postings, he compares news production about the same firm by different news media whose advertising revenues are differentially exposed to industry-level advertisement shocks. Financial news production is procyclical at the aggregate level and serves as a channel for economic shock transmission and amplification.
Dr. Allen Hu
Research Interests:
Corporate Finance, Entrepreneurial Finance, and Behavioral Finance; Information in Financial Markets, Unstructured Data & Machine Learning in Finance
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