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

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28 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 languageEnglish
Pages (from-to)195-217
Number of pages23
JournalPacific Basin Finance Journal
Volume9
Issue number3
DOIs
Publication statusPublished - 1 Jun 2001

Keywords

  • G14
  • News
  • Stock exchange of Hong Kong
  • Trading activity

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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