News events and Price movements tention. mainly in connection with the question how exactly information is processed in the financial markets. This is based on a very narrow definition of"information content"that reduces the term to news contents which pro- voke prompt stock price movements. Media studies has mostly analyzed the effects of business news from the point of view of a supposed influence on voters' behavior, thus in a political context, if at all. So far, the interaction of markets and the media has not been studied by this discipline In the following, the results of empirical research on the functioning of data processing in the financial markets will be extracted and examined in a quali- tative meta-analysis. The goal is to understand the immediate effects of the media on financial markets. As a synthesis of the existing material will show, a long-term analysis reveals recurring patterns. There is a relationship between markets and the media the media can have an effect on the markets. However here is only a limited possibility of summarizing how this happens in univer sally applicable terms. The following questions are to be answered: Do news published in the mass media have an immediate effect on financial markets? And if yes, in which way? 2. State of the art: Random walks"and "Irrational Exuberance Do news have price effects on the financial markets or not? This question is part of a central and heated debate in economics which is far from being se tled. In numerous studies, exponents of empirical capital market research have come to the conclusion that new information is reflected in stock prices quickly and without considerable delay. This is why they call markets"effi cient"and consider news to be generally ineffective. Advocates of Beha- vioral Finance, however, document multiple cases of delayed price reactions after the arrival of new information and therefore describe the markets as "in- efficient". They consider the news in the media to be potentially effective The theoretical premises of the two approaches and their implications could hardly be more different: As Paul Samuelson(1965)explains in his classic text Proof That Properly Anticipated Prices Fluctuate Randomly, the current price of a stock is the best estimate of its true value. If the correct future price was already known, according to Samuelson, the price would immediatelyNews Events and Price Movements tention, mainly in connection with the question how exactly information is processed in the financial markets. This is based on a very narrow definition of “information content” that reduces the term to news contents which pro￾voke prompt stock price movements. Media studies has mostly analyzed the effects of business news from the point of view of a supposed influence on voters' behavior, thus in a political context, if at all.10 So far, the interaction of markets and the media has not been studied by this discipline. In the following, the results of empirical research on the functioning of data processing in the financial markets will be extracted and examined in a quali￾tative meta-analysis. The goal is to understand the immediate effects of the media on financial markets. As a synthesis of the existing material will show, a long-term analysis reveals recurring patterns. There is a relationship between markets and the media, the media can have an effect on the markets. However, there is only a limited possibility of summarizing how this happens in univer￾sally applicable terms. The following questions are to be answered: Do news published in the mass media have an immediate effect on financial markets? And if yes, in which way? 2. State of the Art: "Random Walks" and "Irrational Exuberance" Do news have price effects on the financial markets or not? This question is part of a central and heated debate in economics which is far from being set￾tled. In numerous studies, exponents of empirical capital market research have come to the conclusion that new information is reflected in stock prices quickly and without considerable delay. This is why they call markets “effi￾cient” and consider news to be generally ineffective.11 Advocates of Beha￾vioral Finance, however, document multiple cases of delayed price reactions after the arrival of new information and therefore describe the markets as “in￾efficient”. 12 They consider the news in the media to be potentially effective. The theoretical premises of the two approaches and their implications could hardly be more different: As Paul Samuelson (1965) explains in his classic text “Proof That Properly Anticipated Prices Fluctuate Randomly”, the current price of a stock is the best estimate of its true value. If the correct future price was already known, according to Samuelson, the price would immediately 6