RELATION BETWEEN NEGATIVE TONE IN NEWS RELEASES OF WHO AND INDUSTRY RETURNS DURING THE COVID-19 PANDEMIC

  • Denada Ibrushi St. Mary’s University, 1 Camino Santa Maria San Antonio Texas 78228, +1 (210) 264-9698
  • Helmi Jedidi HEC Montreal, 3000 Chemin de la Côte-Sainte-Catherine, Montréal, QC H3T 2A7
DOI: https://doi.org/10.24135/afl.v10i.442

Abstract

We analyze the relationship between the negative tone in news releases issued by the WHO and industry returns during the Covid-19 pandemic. We construct our news tone measure as the ratio of negative words to the total number of words present in news releases of WHO. The news tone shows to be significantly associated with returns for the majority of industries. Bad news announced by the WHO translates into good news for consumer nondurables, telecommunications, and healthcare sectors. Negative tone in news releases of WHO is on average bad news for consumer durables, manufacturing, energy, and other industries. Our findings suggest that the news tone-return relation varies significantly throughout our Covid-19 sample. 

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Published
2021-10-27
How to Cite
Ibrushi, D., & Jedidi, H. (2021). RELATION BETWEEN NEGATIVE TONE IN NEWS RELEASES OF WHO AND INDUSTRY RETURNS DURING THE COVID-19 PANDEMIC. Applied Finance Letters, 10, 93 - 102. https://doi.org/10.24135/afl.v10i.442
Issue
Vol. 10 (2021)
Section
Articles submitted to regular issue

Copyright (c) 2021 Denada Ibrushi, Helmi Jedidi

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