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

    51 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)3289-3301
    Number of pages13
    JournalJournal of Banking and Finance
    Volume36
    Issue number12
    DOIs
    Publication statusPublished - Dec 2012

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