CEO Interviews on CNBC

Kim, Y. Han (Andy); Meschke, Felix

doi:10.2139/ssrn.1745085

Download This Paper

Open PDF in Browser

Add Paper to My Library

CEO Interviews on CNBC

Fifth Singapore International Conference on Finance 2011

64 Pages Posted: 23 Jan 2011 Last revised: 24 Nov 2014

See all articles by Y. Han (Andy) Kim

Felix Meschke

University of Kansas - Finance Area

There are 2 versions of this paper

Date Written: August 11, 2014

Abstract

We investigate whether media attention systematically affects stock prices through the trading of individual investors by exploiting the substantial discrepancy between perceived and actual information content of 6,937 CEO interviews on CNBC. The average cumulative abnormal stock return over the [-2, 0] trading day window is 1.62%, followed by reversion of 1.08% over the following ten trading days. The magnitude of price response is positively correlated with the viewership as well as the language tone of the CEO. Individual investors and short sellers are key drivers of the pricing pattern. We document evidence of information cascade coming from CNBC interviews.

Keywords: Market efficiency, investor attention, media, CEO interviews, Jim Cramer, Maria Bartiromo, individual investors

JEL Classification: G14, G12

Suggested Citation: Suggested Citation

Kim, Y. Han (Andy) and Meschke, Felix, CEO Interviews on CNBC (August 11, 2014). Fifth Singapore International Conference on Finance 2011, Available at SSRN: https://ssrn.com/abstract=1745085 or http://dx.doi.org/10.2139/ssrn.1745085