Abstract
PurposeThis paper focuses on the influence of social, cultural and religious factors on investors' attention. In particular, the authors examined if the attention-grabbing mechanism works on Sundays, that is, if the Italians' Sunday activities and habits lead to a lower attention to second-hand financial news, compared to Saturdays.Design/methodology/approachThe authors analyzed the market reaction to equivalent stale events published on the Saturday and Sunday editions of an Italian financial newspaper and conducted a standard event study on abnormal returns and abnormal volumes for Saturday and Sunday columns and a multivariate analysis on abnormal returns for columns reporting positive recommendations. As a robustness check, the authors performed a sentiment analysis of the columns and included this variable in the regression analysis, but sentiment proved to be not significant in the final model.FindingsThe study’s results confirmed that the attention-grabbing mechanism directed buying decisions, while had no influence on selling decisions. Furthermore, event study and multivariate analysis showed a significant lower market reaction to Sunday columns, supporting the study hypothesis of a Sunday investors' inattention which can be traced to cultural and/or religious factors since Sunday in Italy is a day devoted to family, entertainment and religious rituals.Practical implicationsThe lower investors' attention on Sundays and the related influence of social, cultural and religious factors have implications for the timing of both corporate communications and financial advertising.Originality/valueThe authors’ paper provides an original contribution, on the empirical ground, to the attention-grabbing theory and to the growing theoretical literature in microeconomics that models attention.
Subject
Strategy and Management,Finance,Accounting
Reference37 articles.
1. The effects of DDDMCA on bank stockholders' return and risk;Journal of Banking and Finance,1988
2. Do culture, sentiment, and cognitive dissonance explain the ‘above suspicion’ anomalies?;European Financial Management,2019
3. Bagnoli, M., Clement, M. and Watts, S.G. (2006), “Around-the-Clock media coverage and the timing of earnings announcements”, McCombs Research Paper Series No. ACC-02-06, available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=570247 (accessed 11 March 2021).
4. All that glitters: the effect of attention and news on the buying behavior of individual and institutional investors;Review of Financial Studies,2008
5. Gender and time allocation of cohabiting and married women and men in France, Italy, and the United States;Demographic Research,2014
Cited by
1 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献