News dissemination and investor attention

Romain Boulland; Francois Degeorge; Edith Ginglinger

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. The effect of wire services on investor attention is due to the format of news (electronic and English-language), not to the increased speed of news transmission

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Year of publication:	2014
Authors:	Boulland, Romain ; Degeorge, François ; Ginglinger, Edith
Publisher:	Genève : Swiss Finance Inst.
Subject:	Method of dissemination \| Language \| Media coverage \| Earnings announcements \| Limited attention \| Künstliche Intelligenz \| Artificial intelligence \| Gewinnprognose \| Earnings announcement \| Ankündigungseffekt \| Announcement effect \| Anlageverhalten \| Behavioural finance \| Informationsverbreitung \| Information dissemination \| Mediale Berichterstattung

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Extent:	Online-Ressource (43 S.) graph. Darst.
Series:	ECGI finance working paper. - Bruxelles, ZDB-ID 2486332-4. - Vol. 416 European Corporate Governance Institute (ECGI) - Finance Working Paper ; No. 416/2014 Research paper series / Swiss Finance Institute. - Geneva, ZDB-ID 2392286-2. - Vol. 14,21
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Notes:	Angabe des 2. Gesamttitel lt. SSRN-Frontdoor
Other identifiers:	10.2139/ssrn.2416318 [DOI]
Classification:	D83 - Search, Learning, Information and Knowledge ; G12 - Asset Pricing ; G14 - Information and Market Efficiency; Event Studies
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10010338697