Accurate Merger Reporting Leads To Profit; Bloomberg Tops List

A new academic study makes the case that how the business media reports mergers impacts the stock price of the companies in question, while the ability to predict which journalists will be most accurate can be determined in large part based on their background. In their white paper, “Rumor Has It: Sensationalism in Financial Media,” Kenneth R. Ahern of the University of Southern California and Denis Sosyura of University of Michigan studies accuracy in the business press in the context of merger rumors.  The report noted that while mergers have declined, rumors have increased. “We challenge the view that the…