TY - JOUR
T1 - Comparing the Impact of News: A Tale of Three Health Care Sectors
T2 - A tale of three health care sectors
AU - Ewing, Bradley
AU - Kruse, Jamie B.
AU - Thompson, Mark
PY - 2005/9
Y1 - 2005/9
N2 - This paper examines the impact of news on the volatility of equity returns in three sectors of the health care industry - health care service providers, producers of drugs and supplies, and third-party payors. The news impact is found to be asymmetric in that bad news (i.e., a negative shock) has a significantly greater effect on volatility than good news. Intra-industry differences in health care equity market performance are documented and are consistent with the fundamental attributes of these sectors including the degree of price and cost pressures facing firms, the physical capital requirements of firms, the search behavior of health care customers, and the presence of alternative market opportunities.
AB - This paper examines the impact of news on the volatility of equity returns in three sectors of the health care industry - health care service providers, producers of drugs and supplies, and third-party payors. The news impact is found to be asymmetric in that bad news (i.e., a negative shock) has a significantly greater effect on volatility than good news. Intra-industry differences in health care equity market performance are documented and are consistent with the fundamental attributes of these sectors including the degree of price and cost pressures facing firms, the physical capital requirements of firms, the search behavior of health care customers, and the presence of alternative market opportunities.
KW - Equity returns
KW - Health care industry
KW - Time series
UR - http://www.scopus.com/inward/record.url?scp=27844505719&partnerID=8YFLogxK
U2 - 10.1111/j.0306-686X.2005.00641.x
DO - 10.1111/j.0306-686X.2005.00641.x
M3 - Article
VL - 32
SP - 1587
EP - 1611
JO - Journal of Business Finance and Accounting
JF - Journal of Business Finance and Accounting
IS - 7-8
ER -