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- Title
News Dissemination and Investor Attention.
- Authors
Boulland, Romain; Degeorge, François; Ginglinger, Edith
- 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 with 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.
- Subjects
SELECTIVE dissemination of information; STOCK prices; EARNINGS announcements; ENGLISH language; WIRE industry
- Publication
Review of Finance, 2017, Vol 21, Issue 2, p761
- ISSN
1572-3097
- Publication type
Article
- DOI
10.1093/rof/rfw018