The Usual Suspects: The Effects of Attention on Journalists' Stock Recommendations
Applied Financial Economics Letters (2008) Volume 4, Issue 1-3, pp. 97-101 .
11 Pages Posted: 11 Jan 2007 Last revised: 15 Nov 2012
Date Written: December 20, 2006
This study examines if journalists are affected by attention stimuli similar to that of individual investors. Applying logistic regression technique, we find that journalists focus on attention grabbing stocks when publishing their buy and sell recommendations. Thereby, journalists intensify the well-documented attention bias of individual investors.
Keywords: Stock recommendations, attention hypothesis, journalists, momentum investment,
JEL Classification: G11
Suggested Citation: Suggested Citation