The impact of attention to news about tax changes on the stock market

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F17%3A43912775" target="_blank" >RIV/62156489:43110/17:43912775 - isvavai.cz</a>

Result on the web

<a href="https://doi.org/10.11118/actaun201765062113" target="_blank" >https://doi.org/10.11118/actaun201765062113</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.11118/actaun201765062113" target="_blank" >10.11118/actaun201765062113</a>

Result language

angličtina

Original language name

The impact of attention to news about tax changes on the stock market

Original language description

We approach to point out new direction of measurement the attention of the news related to changes in taxes by using the application Google Trends. The objective of the study is to extend literature that investigates the impact of the information&apos;s search intensity provided by Google Trends on capital market. We show that increasing attention on tax changes measured by Google search decrease stock prices of the US companies listed on NASDAQ. Moreover, we focus on abnormal Google searches related to particular shocks. The study investigates the positive relationship between attention to news about tax changes and stock prices in a specific year. The cross-sectional analysis employs data from 2004 and 2005. At that time, President George Bush enacted tax breaks for overseas corporate profits, which had a great impact on search intensity within the period. Additionally, we differentiate between market capitalisation by using the dummy variables to put on the role changes of probability on selected datasets. The results confirmed higher impact of attention on large cap companies and point out the importance of sentiment analysis at liquid markets.

Czech name

—

Czech description

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Type

J_SC - Article in a specialist periodical, which is included in the SCOPUS database

CEP classification

—

OECD FORD branch

50206 - Finance

Project

<a href="/en/project/GA16-26353S" target="_blank" >GA16-26353S: Sentiment and its impact on stock markets</a><br>

Continuities

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year

2017

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis

ISSN

1211-8516

e-ISSN

—

Volume of the periodical

65

Issue of the periodical within the volume

6

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

9

Pages from-to

2113-2121

UT code for WoS article

—

EID of the result in the Scopus database

2-s2.0-85038842618