# Media abnormal tone, earnings announcements, and the stock market

**Authors:** David Ardia, Keven Bluteau, Kris Boudt  
**arXiv:** [2110.10800](https://arxiv.org/abs/2110.10800)  
**Date:** 2021-10-20  
**Summary page:** https://www.summarizepaper.com/en/paper/2110.10800v1/

## Key points

- Study titled "Media Abnormal Tone, Earnings Announcements, and the Stock Market" by David Ardia, Keven Bluteau, and Kris Boudt
- Investigates impact of media articles on price discovery for nonfinancial S&P 500 firms
- Analyzes aggregate abnormal tone dynamics in media coverage surrounding earnings announcements
- Aim to determine if media articles provide incremental information beyond earnings press releases and calls
- Findings suggest significant relationship between abnormal tone in media articles and abnormal returns in stock market
- Media coverage plays crucial role in conveying additional insights to investors during earnings periods
- Importance of considering media sentiment alongside official company communications when assessing market reactions to financial news
- Research contributes valuable insights into how media narratives influence stock market behavior around earnings announcements

## Summary

In their study titled "Media Abnormal Tone, Earnings Announcements, and the Stock Market," authors David Ardia, Keven Bluteau, and Kris Boudt investigate the impact of media articles on price discovery for nonfinancial S&P 500 firms. Through a tone-based event study, they analyze the aggregate abnormal tone dynamics in media coverage surrounding earnings announcements. The researchers aim to determine if these articles provide incremental information beyond what is already disclosed in earnings press releases and calls. Their findings suggest a significant relationship between abnormal tone in media articles and abnormal returns in the stock market. This indicates that media coverage plays a crucial role in conveying additional insights to investors during earnings periods. The study highlights the importance of considering media sentiment alongside official company communications when assessing market reactions to financial news. The research, forthcoming in the Journal of Financial Markets Volume 61 (November 2022), contributes valuable insights into how media narratives influence stock market behavior around earnings announcements. By examining the interplay between media abnormal tone and stock performance, the study sheds light on the nuanced dynamics of information dissemination in financial markets.