Cross-border portfolio flows and news media coverage

This paper investigates the dynamic linkages between portfolio flows and various news media indices (based on both “positive” “negative” headlines collected from Bloomberg), whilst also controlling for a comprehensive set of push pull factors. The monthly panel examined comprises 49 developed, emerging developing economies in addition to US covers period January 2007 October 2017. empirical results document importance variables as determinant cross-border flows. More specifically, (worldwide) appear play leading role driving bond inflows into (outflows from) US. By contrast, impact equity towards is relatively weak, outflows are affected by worldwide news. These shown be robust dropping full sample six financial centres considered.