Font Size: a A A

The Impact Of Attention On The Reaction Of Stock Returns-Empirical Evidence From China’s Stock Market

Posted on:2013-07-04Degree:MasterType:Thesis
Country:ChinaCandidate:J J WangFull Text:PDF
GTID:2249330362967872Subject:Business Administration
Abstract/Summary:PDF Full Text Request
Nowadays the role of attention toward news is more and moreimportant in securities investment activities. It affects the assets’ pricethrough influencing investors’ psychologies and behaviors. We found thatindividual investors are more likely to buy rather than sell those stocksthat catch their attention. We posit that this is so because attention affectsbuying-where investors search across thousands of stocks-more thanselling-where investors generally choose only from the few stocks thatthey own. We hypothesize that many investors consider purchasing onlystocks that have first caught their attention, means attention-drivenbuying. Also, we hypothesize that there still is reversal effect afterattention impacting the purchasing behavior. We use the number ofsearching containing the code of each stock from BAIDU.COM torepresent the attention. Then we test and confirm these hypothesis modelsfrom the china stock market.
Keywords/Search Tags:Attention-driven buying, reversal effect, investors’behaviors
PDF Full Text Request
Related items