News Media and Information Technology for Investment Activity: The Impact of Uncertainty Shocks ...

Titel: 

News Media and Information Technology for Investment Activity: The Impact of Uncertainty Shocks on Stock Market Dynamics

Abstract

Understanding the interrelationships of today’s activities on major stock markets is the main purpose of this thesis. A starting point was an multidimensional treatment of a published part of the Ph.D. thesis of Nicolas Bloom from 2009, where crises events of last decades have been investigated on a model including time-varying second moment components. Since the aftereffects of the Financial Crisis 2007 are still evident, this aspiration is considered as relevant for the derivation of the chosen hypothesis.

A data set of 40 years performance of the S&P 500 index, as a major economic indicator, was subject of an empirical investigation. This statistical study revealed indications of a downtrend of market reaction times.

The theoretical basis for the study was a review of model theoretical work relating to market efficiency such as investment methods, which are seen as established among participants of today’s stock trading. Special attention was directed on hu- man factors, as these influence the role of financial media coverage as well as the technological progress in the field of information and data exchange.