Stock salience and the asymmetric market impact of consumer sentiment news

Shumi Akhtar, Robert Faff, Barry Oliver, Avanidhar Subrahmanyam

    Research output: Contribution to journalArticlepeer-review

    50 Citations (Scopus)

    Abstract

    We document asymmetric announcement effects of consumer sentiment news on United States stock and stock futures markets. While a negative market effect occurs upon the release of bad sentiment news, there is no market reaction for the counterpart good news. This supports the ''negativity effect'' hypothesis. Notably, this effect seems most likely to occur in salient stocks, which is consistent with the availability heuristic.
    Original languageEnglish
    Pages (from-to)3289-3301
    Number of pages13
    JournalJournal of Banking and Finance
    Volume36
    Issue number12
    DOIs
    Publication statusPublished - 2012

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