The Effect Of News From Different Internet Media Toward Volatility Of Stock Market

Chinese stock market,one of the most important asset markets around the world with market cutoff at 61.44 trillion yuan in February 2020,a volume that approximately 62 percent of China GDP in 2019,this is an important stimulus of China's capital market.As stock market is a place of prosperity with trillions of cash flow,it is very important to ensure market stable for stability of the economy.Therefore,Chinese government has imposed a regulation that required all listed companies to disclose their financial information to the public,resulting in transparent of news information of the listed companies to the investors.These investors access to available information and make investment decisions rationally.Additionally,the regulation also increases the quantity of information being provided into the market,create enough information resources for investors through available media.With the arrive of internet,the technology creates an evolution on how the news get announced.It become a main platform for people to receive news information.With benefit that the medium has provided,many traditional media have shifted the way of announcing the news from traditional media to internet base.As a result,internet become a main platform that provide investors with abundance of financial information,it become a massive center of information for everybody.However,there is an issue hidden behind this technology.As the total amount of news have increased,but the number of quality news information have not increase proportionally,this has created a problem where investors need to spend more effort to search for valuable news as it become less visible.Investors need to spend more time and effort to identify and judge valuable news from different websites that may contain either relevant and less relevant information,resulting in increasing in cost of searching.Moreover,as the increasing in number of news websites make it more difficult for investors to quickly evaluate valuable news from multiples sources,this might affect investors in term of ability to maximize their profit and become less competitive against other investors.However,if the websites that announce valuable news can be identified,it will reduce cost of searching for investors.So far,there is not yet any study that can clearly identify how different news websites can create difference on investors cognition,therefore this study is aiming to fulfil this gap of research.The identifying of valuable news websites would help investors to be in competitive position in the stock market.To get an insight on identifying valuable news websites,this study works on several different Chinese main news websites that announce news of the listed companies,and identifies how each website is effect investors by looking at stock market performance related to the news announcement in different websites.Main focus of this research is major online news websites that related to Chinese stock market.The research starts with obtaining information of listed companies from the online news websites by using data crawlers.Then,event-study method has been used to identify differences in abnormal returns of the stock market when received news information from different news websites.In the next step,this study analyzes how website attributes and market information production method effect on market abnormal returns.Based on the results of this research,this study not only fills the academic gap in this field,but also provide guidance to investors' decisions,help investors obtain and analyze value information,and protect small and medium investors.