Reprint of: Stock salience and the asymmetric market effect of consumer sentiment news

Shumi Akhtar, Robert Faff, Barry Oliver*, Avanidhar Subrahmanyam

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    6 Citations (Scopus)

    Abstract

    We document asymmetric announcement effects of consumer sentiment news on United States stock and stock futures markets. While a negative market effect occurs upon the release of bad sentiment news, there is no market reaction for the counterpart good news. This supports the "negativity effect" hypothesis. Notably, this effect seems most likely to occur in salient stocks, which is consistent with the availability heuristic.

    Original languageEnglish
    Pages (from-to)4488-4500
    Number of pages13
    JournalJournal of Banking and Finance
    Volume37
    Issue number11
    DOIs
    Publication statusPublished - Nov 2013

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