Keywords
Ebola Outbreak
Media Attention
Market Sentiment
Market Efficiency
Return Reversal
Media Attention
Market Sentiment
Market Efficiency
Return Reversal
How to Cite
Gutierrez, J. ., & Funck, M. (2018). Has Ebola Infected The Market: A Contagious Reaction To A (Media) Health Care Crisis?. Journal of Business Strategies, 35(2), 55–75. https://doi.org/10.54155/jbs.35.2.55-75
Abstract
We examine the impact of Ebola headline news days on media-highlighted
stocks. An Ebola news day (negative or positive in nature) is associated with increased
trading, higher share volume, higher dollar volume, and increased share turnover.
OLS regressions on industry-specific portfolios reveal that airline, restaurant, and
cruise ship returns reverse themselves one day after the Ebola news event, a result
that is consistent with behavioral overreaction literature. Empirical findings could be
used to prepare market participants for analogous epidemics.
This article is distributed using a Creative Commons Attribution-NonCommercial 4.0 license. Copyright remains with the author(s).