News dissemination and investor attention
Informazioni aggiuntive
Autori
Boulland R.,
Degeorge F.,
Ginglinger E.
Tipo
Articolo pubblicato in rivista scientifica
Anno
2017
Lingua
Inglese
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.
Rivista
Review of Finance, forthcoming
Volume
21
Numero
2
Mese
marzo
Pagina inizio
761
Pagina fine
791
