Does the Mad Money Show cause investors to go madly attentive?

78 Pages Posted: 9 Sep 2022

See all articles by Lawrence Kryzanowski

Lawrence Kryzanowski

Concordia University, Quebec - John Molson School of Business

Ali Rouhghalandari

Concordia University

Multiple version iconThere are 2 versions of this paper

Date Written: August 24, 2022


We study the effects of the popular Mad Money Show on the attention of investors and financial markets. We find that the Show’s mentions/recommendations significantly affect retail and institutional investor attention, proxied by SEC EDGAR queries and posts on Stocktwits, that remain after controlling for other firm-specific news and other moderating events such as the Superbowl and Olympics. The magnitudes of the effects depend on the direction of the recommendations (buy or sell) and the emphasis allocated to a stock on the Show. The induced investor attention subsequently affects the abnormal trading volumes and short-sales activities of retail and institutional investors, and the portfolios of retail investors. No abnormal returns are associated with any pre-Show publicity about upcoming guest interviews. Significantly positive (negative) following-day abnormal returns for buy (sell) recommendations on the Show become significantly negative (positive) by day 20. Overall, our findings are consistent with the impact of the media and its potential influencers on the limited attention of investors, the short-term price pressure associated with noise traders, and the shorting of contrarian investors.

Keywords: Retail and institutional investor attention, Media influencers, Behavioral finance, Trade and return effects.

JEL Classification: G4, G11, G12, G14, L82

Suggested Citation

Kryzanowski, Lawrence and Rouhghalandari, Ali, Does the Mad Money Show cause investors to go madly attentive? (August 24, 2022). Available at SSRN: or

Lawrence Kryzanowski (Contact Author)

Concordia University, Quebec - John Molson School of Business ( email )

1455 de Maisonneuve Blvd. W.
Montreal, Quebec H3G 1M8

Ali Rouhghalandari

Concordia University


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