Financial System Workshop: The Echoes of Muted Political Speech in Financial Speech

Title

The Echoes of Muted Political Speech in Financial Speech

Abstract

Does impairment of political speech affect financial speech? We exploit the introduction of the National Security Law (NSL) in Hong Kong in June 2020 to answer this question. We find that after the NSL enactment, local analysts self-censor their reports, compared to foreign analysts covering the same firms. Specifically, when firm-specific bad news hits, local analysts shade up their forecasts, use vaguer language, and respond more slowly to earnings announcements. This pattern is especially true for central state-owned enterprises as negative opinions on their poor performance may be deemed unpatriotic. Markets are aware of this self-censorship and respond accordingly.

Date & Time

Wednesday, April 30th, 2025 17：00 – 18:30
※Limited to those affiliated with the University of Tokyo

Venue

Kojima Seminar Room 3
2F of Economics Research Annex (Kojima Hall)
https://www.carf.e.u-tokyo.ac.jp/access/#campusmap

Speaker

Utpal Bhattacharya
Chair Professor of Finance
Hong Kong University of Science and TechnologyHong Kong S.A.R.

https://ubhattac.people.ust.hk/