Categories: OLD Media Moves

Markets reporters tend to focus more on the negative

Business journalists who cover the stock market are more negative about market falls than positive about market rises, reports John Authers of The Financial Times.

Authers writes, “This week, Diego Garcia of the University of Colorado at Boulder presented a paper to a conference on journalism and markets at Columbia Business School. Entitled The Kinks of Financial Journalism, it shows that journalists are biased — collectively we are more negative about market falls than positive about market rises.

“The methodology involved building a database of market reports published by the New York Times and the Wall Street Journal between 1905 and 2005, assigning a score to the choice of words on a scale from positive to negative, and then seeing how positivity and negativity of coverage correlated with moves in the Dow Jones Industrial Average. (Few other benchmarks were available a century ago).

“In theory, the relationship should be almost linear. As the market performance on any day improved, so the language in the next day’s paper would grow more positive. And equally, as the market fell more, so the coverage would grow more negative.

“But the relationship turned out to have a kink. After a while, extra increases for the market made little or no difference to the positivity of journalists’ prose; but as falls grew worse, the language grew ever more negative.”

Read more here.

Chris Roush

Chris Roush was the dean of the School of Communications at Quinnipiac University in Hamden, Connecticut. He was previously Walter E. Hussman Sr. Distinguished Professor in business journalism at UNC-Chapel Hill. He is a former business journalist for Bloomberg News, Businessweek, The Atlanta Journal-Constitution, The Tampa Tribune and the Sarasota Herald-Tribune. He is the author of the leading business reporting textbook "Show me the Money: Writing Business and Economics Stories for Mass Communication" and "Thinking Things Over," a biography of former Wall Street Journal editor Vermont Royster.

Recent Posts

Dow Jones plans to expand Middle East operations

Dow Jones & Co., the parent of The Wall Street Journal, Barron's, MarketWatch.com and Investor's…

2 hours ago

WSJ seeks a White House reporter

The Wall Street Journal is seeking a White House reporter in Washington, DC, to break…

2 hours ago

Politics editor Pershing leaving WSJ

Ben Pershing, the politics editor of The Wall Street Journal, is leaving the news organization.…

2 hours ago

NY Times taps Stevenson as DC bureau chief

New York Times executive editor Joe Kahn sent out the following on Friday: A January 2010 front…

2 hours ago

Dow Jones senior VP Jones is departing

Brent Jones, the senior vice president of training, culture and community at Dow Jones, is…

3 hours ago

WSJ seeks a logistic bureau chief

The Wall Street Journal is looking for an editor to lead its coverage of logistics…

15 hours ago