Date
2017
Indexation documentaire
Economie financière
Subject
News dissemination; Language; Media coverage; Earnings announcements; Limited attention; D83; G12; G14
Code JEL
D.D8.D83; G.G1.G12; G.G1.G14
Nom de la revue
Review of Finance
Volume
21
Numéro
2
Date de publication
2017
Pages article
761-791
Nom de l'éditeur
Kluwer Academic Publishers
Auteur
Boulland, Romain
Degeorge, François
Ginglinger, Edith
Type
Article accepté pour publication ou publié
Résumé en anglais
We examine how investor attention changes when a firm adopts a modern news dissemination technology. We find that after continental European firms begin using an English-language electronic wire service to disseminate company news, they exhibit a stronger initial reaction to earnings surprises, a lower post earnings announcement stock price drift, and an increase in abnormal trading volume near earnings announcements, compared with when they disseminated their news in non-electronic format and in a continental European language. Our results hold for a sub-sample of firms for which the decision to use a wire service was likely exogenous. The effect of wire services on investor attention is due to the format of news (electronic and English-language), not to the increased speed of news transmission.