Study on Stock Price Reaction to News

• DOI: 10.29189/kaiajfai.24.1.4
• Publication Date: 2024-04-17T02:16:06Z
• Authors: Hyunyoung Cho; Hyunkwon Cho
• Keywords: Stock (firearms)

[Purpose]This study examines the impact of Korean news articles on stock valuations, exploring how content and themes affect market participants’ predictions corporate value prices, thereby highlighting news’ role in shaping perceptions. [Methodology]Our research method involved creating a deep learning－based classification model to sort approximately 57 million Naver from 2013 2021 into about 20 themes, including capital financing technological advancements. We also analyzed responses (stock returns) these assessed positive negative differently influenced reactions. [Findings]Informative significantly affects returns trading volume within minute, showing quick responses. Positive triggers faster stronger reactions than news. Moreover, vary by theme, with earnings macroeconomic prompting rapid significant [Implications]This pioneering analyzing large scale data offers valuable insights for text analysis accounting finance. It helps investors better predict price could lessen information gap between institutional individual investors, ultimately improving transparency efficiency.