Article
A Face Can Launch a Thousand Shares—and an 0.80% Abnormal Return
Journal of Behavioral Finance
Document Type
Article
Language
eng
Format of Original
10 p.
Publication Date
7-1-2008
Publisher
Taylor & Francis (Routledge)
Disciplines
Abstract
In this paper we examine the market reaction—price and volume—to the appearance of a firm in the Who’s News column of The Wall Street Journal. We differentiate between those firms whose articles are accompanied by a picture of an executive and a control set of firms whose articles on the same day are not accompanied by a picture. The results show a more pronounced market reaction to the “cum picture” articles, consistent with the incomplete information theory of Merton [1987] and the heuristic-based familiarity hypothesis. There is no evidence of significant long-run abnormal performance for the sample firms.
Citation Information
Matteo P. Arena and John S. Howe. "A Face Can Launch a Thousand Shares—and an 0.80% Abnormal Return" Journal of Behavioral Finance (2008) ISSN: 1542-7560 Available at: http://works.bepress.com/matteo_arena/16/
Accepted version. Journal of Behavioral Finance, Vol. 9, No. 3 (July 2008): 107-116. DOI. © 2008 Taylor & Francis. Used with permission.