The Impact of Repeated Notifications and Notification Checking Mode on Investors’ Reactions to Managers’ Strategic Title Emphasis
46 Pages Posted: 3 Jun 2020 Last revised: 8 Jun 2021
Date Written: May 20, 2021
We conduct an experiment to examine how repeated exposure to earnings notifications and the mode in which investors check notifications affect investors’ reactions to managers’ strategic positive emphasis in the title of an earnings release. We find that a title with (versus without) a positive emphasis leads to a favorable judgment when investors receive repeated notifications in a one-by-one mode. However, when investors receive a notification for the first time, or when investors receive repeated notifications in an all-at-once mode, we do not find a strategic positive title emphasis influences investor judgment. Overall, our results suggest that a strategic positive title emphasis could have different impacts on investor judgment depending on the frequency and mode in which investors receive earnings notifications.
Keywords: repeated exposure, notification checking mode, title, strategic emphasis, information processing
JEL Classification: C91, C92, G14, M41
Suggested Citation: Suggested Citation