The impact of salient political and economic news on the trading activity

Yue Cheong Chan; Chun Wai Andy Chui; Chuck C.Y. Kwok

doi:10.1016/S0927-538X(01)00015-4

The impact of salient political and economic news on the trading activity

Yue Cheong Chan, Chun Wai Andy Chui, Chuck C.Y. Kwok

Research output: Journal article publication › Journal article › Academic research › peer-review

33 Citations (Scopus)

Abstract

This paper investigates the impact of salient political and economic news on the intraday trading activity, namely, the stock return volatility, the stock price volatility, the number of shares traded, and the trading frequency. Using transactions data on 33 constituent stocks of the Hang Seng Index in the Stock Exchange of Hong Kong (SEHK), we find that political news has a distinct impact on market activity when compared with economic news. We argue that the observed phenomenon is related to the precision of signals associated with these two types of news and investors' perceptual biases.

Original language	English
Pages (from-to)	195-217
Number of pages	23
Journal	Pacific Basin Finance Journal
Volume	9
Issue number	3
DOIs	https://doi.org/10.1016/S0927-538X(01)00015-4
Publication status	Published - 1 Jun 2001

Keywords

G14
News
Stock exchange of Hong Kong
Trading activity

ASJC Scopus subject areas

Finance
Economics and Econometrics

More information

10.1016/S0927-538X(01)00015-4

Cite this

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title = "The impact of salient political and economic news on the trading activity",

abstract = "This paper investigates the impact of salient political and economic news on the intraday trading activity, namely, the stock return volatility, the stock price volatility, the number of shares traded, and the trading frequency. Using transactions data on 33 constituent stocks of the Hang Seng Index in the Stock Exchange of Hong Kong (SEHK), we find that political news has a distinct impact on market activity when compared with economic news. We argue that the observed phenomenon is related to the precision of signals associated with these two types of news and investors' perceptual biases.",

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The impact of salient political and economic news on the trading activity

Abstract

Keywords

ASJC Scopus subject areas

More information

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