Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
959793 | Journal of Financial Economics | 2015 | 17 Pages |
Abstract
Market-wide attention-grabbing events — record levels for the Dow and front-page articles about the stock market — predict the trading behavior of investors and, in turn, market returns. Both aggregate and household-level data reveal that high market-wide attention events lead investors to sell their stock holdings dramatically when the level of the stock market is high. Such aggressive selling has a negative impact on market prices, reducing market returns by 19 basis points on days following attention-grabbing events.
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Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
Yu Yuan,