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News dissemination and investor attention

Additional information

Authors
Boulland R., Degeorge F., Ginglinger E.
Type
Journal Article
Year
2016
Language
English
Abstract
We examine how investor attention changes when a firm adopts a modern news dissemination technology. We find that after continental European firms begin using an English-language electronic wire service to disseminate company news, they exhibit a stronger initial reaction to earnings surprises, a lower post earnings announcement stock price drift, and an increase in abnormal trading volume near earnings announcements, compared to when they disseminated their news in non-electronic format and in a continental European language. Our results hold for a sub-sample of firms for which the decision to use a wire service was likely exogenous. Our findings demonstrate that the format of company news affects investor attention.
Journal
Review of Finance, forthcoming