The Impact of Attention to News about Tax Changes on the Stock Market
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’s search intensity provided by Google Trends on capit...
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| Format: | Article |
| Language: | English |
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Mendel University Press
2017-01-01
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| Series: | Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis |
| Subjects: | |
| Online Access: | https://acta.mendelu.cz/65/6/2113/ |
| _version_ | 1819262232293277696 |
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| author | Jolana Stejskalová |
| author_facet | Jolana Stejskalová |
| author_sort | Jolana Stejskalová |
| collection | DOAJ |
| 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’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. |
| first_indexed | 2024-12-23T19:54:25Z |
| format | Article |
| id | doaj.art-acd4010fabaf44f7aef62f97223f7519 |
| institution | Directory Open Access Journal |
| issn | 1211-8516 2464-8310 |
| language | English |
| last_indexed | 2024-12-23T19:54:25Z |
| publishDate | 2017-01-01 |
| publisher | Mendel University Press |
| record_format | Article |
| series | Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis |
| spelling | doaj.art-acd4010fabaf44f7aef62f97223f75192022-12-21T17:33:17ZengMendel University PressActa Universitatis Agriculturae et Silviculturae Mendelianae Brunensis1211-85162464-83102017-01-016562113212110.11118/actaun201765062113The Impact of Attention to News about Tax Changes on the Stock MarketJolana Stejskalová0Department of Finance, Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech RepublicWe 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’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.https://acta.mendelu.cz/65/6/2113/Google trendscorporate taxsentimentstock pricesearch intensitycapitalisation |
| spellingShingle | Jolana Stejskalová The Impact of Attention to News about Tax Changes on the Stock Market Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis Google trends corporate tax sentiment stock price search intensity capitalisation |
| title | The Impact of Attention to News about Tax Changes on the Stock Market |
| title_full | The Impact of Attention to News about Tax Changes on the Stock Market |
| title_fullStr | The Impact of Attention to News about Tax Changes on the Stock Market |
| title_full_unstemmed | The Impact of Attention to News about Tax Changes on the Stock Market |
| title_short | The Impact of Attention to News about Tax Changes on the Stock Market |
| title_sort | impact of attention to news about tax changes on the stock market |
| topic | Google trends corporate tax sentiment stock price search intensity capitalisation |
| url | https://acta.mendelu.cz/65/6/2113/ |
| work_keys_str_mv | AT jolanastejskalova theimpactofattentiontonewsabouttaxchangesonthestockmarket AT jolanastejskalova impactofattentiontonewsabouttaxchangesonthestockmarket |