Inattentional blindness and Post-Earnings-Announcement-Drift
Recent evidence in Psychology indicates that we are surprisingly unaware of the details of our environment from one view to the next. We often do not detect large changes to objects (‘change blindness’). Furthermore, without attention, we may not even perceive objects (‘inattentional blindness’)....
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| Main Authors: | , |
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| Other Authors: | |
| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
Trường Đại học Kinh tế
2020
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| Subjects: | |
| Online Access: | http://repository.vnu.edu.vn/handle/VNU_123/97656 |
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| Institution: | Vietnam National University, Hanoi |
| Language: | English |
| Summary: | Recent evidence in Psychology indicates that we are surprisingly unaware of the details of
our environment from one view to the next. We often do not detect large changes to objects
(‘change blindness’). Furthermore, without attention, we may not even perceive objects
(‘inattentional blindness’). This paper tests the investor inattentional blindness hypothesis,
which holds that the arrival of extraneous news causes trading and market prices to react
sluggishly to relevant news about a firm. Our test focuses on the competition for
professional investors’ attention between a firm's with eye-catchy streaming news and with
less coverage. We find that a stock’s post-earnings-announcement-drift is stronger, when
professional investors are in the state of ‘inattentional blindness’ |
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