This paper examines the intensity and content of media coverage and their marginal effect on stock returns following explosions in chemical plants. Results show that after controlling for the content of the news articles, the intensity of news coverage related to the accident also matters: other things being equal (e.g., pollution and number of casualties) each news article mitigates the decline in stock prices. We also find that less precise information aggravates losses and that the mitigating effect of news coverage persists after controlling for the precision of available information.
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Unexpected Media Coverage and Stock Market Outcomes.pdf