Abstract
Communication processes and information flows are an intrinsic dimension of financial markets. The neoclassical notion of information and market efficiency conceives of prices in terms of a more or less accurate representation of objective market conditions. However, this overlooks the reflexive, constitutive dimension of informational processes in financial markets. The massive flows of capital around the globe and the constant shifts in financial values entail intersubjective symbolic processes which complicate any notion of representative accuracy or objectivity in news reporting. Drawing on original research into media usage by New Zealand-based traders and analysts, the article discusses the potential for information flows among analysts and journalists to become self-referential during the periods of market uncertainty and volatility when the accuracy and validity of news would normally be regarded as most important. The findings indicate that the relation between analysts and reporters predisposes financial news to reflect and reinforce market consensus.
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