CEO Interviews on Cnbc
49 Pages Posted: 5 Mar 2002
There are 2 versions of this paper
CEO Interviews on CNBC
Date Written: June 2004
This paper investigates whether media attention systematically affects stock prices by analyzing price and volume reactions to CEO interviews broadcast on CNBC between 1999 and 2001. We document a significant positive abnormal return of 1.65 percent accompanied by abnormally high trading volume on the day of the interview. After the interviews, prices exhibit strong mean reversion; over the following ten trading days, the cumulative abnormal return is negative 2.78 percent. These price dynamics suggest that the financial news media is able to generate transitory buying pressure by catching the attention of enthusiastic investors.
Keywords: CEO interviews, Financial news media, Investor behavior
JEL Classification: G14, G12
Suggested Citation: Suggested Citation
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