The Impact Of Internet News On The Market Performance Of Listed Companies' Stocks

With the rapid development of the Internet,China's Internet penetration rate is increasing year by year,and various mobile Internet applications are also used more frequently.Internet has gradually become the main channel for investors to obtain relevant investment information in the past decade.Due to the timeliness of online news on publication and propagation and the convenience of access,once the news related to a listed company is released,it may cause investors' immediate attention to the listed company and changes in investor investment preferences,which will affect the stock trading volume and price.This article collected one-year data from January 2018 to December 2018 mainly from Chinese Research Data Services and China Stock Market & Accounting Research Database to study the impact of online news on the stock market of listed companies.The attributes of online news are mainly measured by indicators such as media attention,media sentiment,and sentiment consistency.The news data were released by the top ten financial information websites;and the market performance of listed companies' stocks is measured by stock return and trading volume.The sample was taken from 267 companies in the Shanghai and Shenzhen 300 index.Firstly,this article adjusted the time of news according to the trading rules of China's securities market.Secondly,it counted the number of every company's original news,total news,positive news,and negative news that appear in each trading day.Thirdly,it built media attention,media sentiment,and sentiment consistency based on the number of news,emotional tone,attention levels,reprints,etc.Finally,it matched them with daily trading data and related financial data.This article analyzed the relationship between stock returns,trading volume and online news by constructing a panel data regression model.Then it examined if different sentiment,different nature,different industries may cause the differences in the impact of the of listed companies.There are four main conclusions.First,online news has a significant impact on the return and volume of the Shanghai and Shenzhen 300 index stocks over the same period.The median attention,media sentiment,and emotional consistency all have positive influence on return at a significant level of 1%.Media attention and sentiment consistency have positive influence on volume at a significant level of 1%.But media sentiment has no significant effect on volume.The affective tendency of media sentiment will have an asymmetric effect on return.The degree of positive affect on return is greater than the effect of negative sentiment on return.Second,it shows the predicted analysis results of online news in the next eight trading days.The effect of media attention on return has changed from being significantly positive to being significantly negative in the next four trading days.The coefficient of influence on trading volume in the next eight is significantly positive.This shows that media attention has a short-term positive effect on return,and the effect on the volume lasts for a long time.Median sentiment's influence on returns is significantly positive in the first,fifth,and sixth trading days,indicating that news sentiment has a significant impact on return on the trading day and the next day,and the impact time is relatively short.Emotional consistency has a poor predictive power for return and volume,indicating that the "Herd Effect" is mainly reflected on the trading day.Third,the influence of online news is different because of ownership characteristics.Media attention,media sentiment,and sentiment consistency have a significant positive impact on return of state-owned and private enterprises.Media attention also has a significant impact on volume of state-owned and private enterprises.The impact of private enterprises is greater.Fourth,the impact of online news on listed companies in different industries is also different.Media attention has a significant positive impact on return of mining,transportation,communications and information,and financial industries.News sentiment has a significant positive impact on return of various industries.Sentiment consistency has a significant impact on manufacturing return.The influence coefficient of media attention on volume in all industries is positive at a significant level of 1%,and sentiment consistency has a significant impact on the communications and information industries and the financial industry.In general,the impact of online news on the communication and information industry in the sample is the most significant.Finally,this article took JD's "Liu Qiangdong Incident" as a typical case.By calculating the extraordinary return rate and cumulative extraordinary return rate during the incident,combined with the financial report released by JD.com,it proved that the event had a great impact on JD.com's stock price,operations,and Mr.Liu Qiangdong.