(Iowa City) A University of Iowa researcher has found that a governor's "Condition of the State" address, can have a positive, or negative impact on stock prices, of firms based in the state. Art Durnev in the Tippie College of Business says they looked at hundreds of governor's speeches, between 2002 and 2010....
"When the general tone of the speech is more optimistic their stock performance is higher than the market average for 3-5 days."
He says the study also suggests managers make capital investment decisions, based on the condition of the state address. Those in "Optimistic" states, invested two percent more than their counterparts in the most pessimistic states.
Iowa Radio Network