Media Coverage and the Stock Market Valuation of TARP Participating Banks

摘要: We examine the impact of media coverage Capital Purchase Program (CPP) under Troubled Assets Relief on equity market valuation participating bank holding companies (CPP banks). document substantial negative CPP and its participants over five quarters following program’s initiation. find that extent about exerted downward pressure stock returns banks, decreasing their relative to not in program. show our findings cannot be explained by differences banks’ financial viability at CPP’s initiation, new information performance being released after initiation or preceding causing coverage. Our highlight importance investor sentiment, as reflected tone coverage, during a period high uncertainty markets.