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

The Echoes of Muted Political Speech in Financial Speech

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.

2025年4月30日（水）17:00 – 18:30 （※東大関係者に限る）

東京大学経済学研究科学術交流棟（小島ホール）2階　
第３セミナー室
https://www.carf.e.u-tokyo.ac.jp/access/#campusmap

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

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