Open:FactSet Forum

Relationship between number of news stories published for a company and its market capitalization

(Francesco Cricchio) #1

We find a linear relationship between the log of the number of news stories published for a company and the log of its market capitalization. The correlation is 0.64.

Not surprisingly the company with the largest of number of news is AAPL, the one with largest market cap.

In the analysis we used about two millions of financial news articles published between 2016 and 2018 for the Russell3000 stock universe. This the news articles dataset integrated in our platform to calculate the Brain Sentiment Indicator from financial news using NLP techniques.

The relation between a company size and the number of published articles is highly discussed in literature, see for example “The Handbook of News Analytics and Finance”, edited by G.Mitra and L.Mitra, 2011".