339,154 research outputs found
High quality topic extraction from business news explains abnormal financial market volatility
Understanding the mutual relationships between information flows and social
activity in society today is one of the cornerstones of the social sciences. In
financial economics, the key issue in this regard is understanding and
quantifying how news of all possible types (geopolitical, environmental,
social, financial, economic, etc.) affect trading and the pricing of firms in
organized stock markets. In this article, we seek to address this issue by
performing an analysis of more than 24 million news records provided by
Thompson Reuters and of their relationship with trading activity for 206 major
stocks in the S&P US stock index. We show that the whole landscape of news that
affect stock price movements can be automatically summarized via simple
regularized regressions between trading activity and news information pieces
decomposed, with the help of simple topic modeling techniques, into their
"thematic" features. Using these methods, we are able to estimate and quantify
the impacts of news on trading. We introduce network-based visualization
techniques to represent the whole landscape of news information associated with
a basket of stocks. The examination of the words that are representative of the
topic distributions confirms that our method is able to extract the significant
pieces of information influencing the stock market. Our results show that one
of the most puzzling stylized fact in financial economies, namely that at
certain times trading volumes appear to be "abnormally large," can be partially
explained by the flow of news. In this sense, our results prove that there is
no "excess trading," when restricting to times when news are genuinely novel
and provide relevant financial information.Comment: The previous version of this article included an error. This is a
revised versio
Review of: Sociology of Work - An Encyclopedia
This reference resource with versions available in a twovolume print edition as well as online, consists of 335 entries from leading scholars and subject experts. The entries cover a broad spectrum of international topics ranging from “alienation” to “working poor.” Entries in both formats include “see also” references and “further readings,” while the online version includes links to cited articles
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