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Data Analysis and Knowledge Discovery  2018, Vol. 2 Issue (4): 20-28    DOI: 10.11925/infotech.2096-3467.2017.1172
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Media Information and Overtrading——An Empirical Study on Micro-Blog Posts, Industry News and Company Announcements
Yonghua Cen1(),Can Zhang1,Chengyao Wu2
1School of Economics and Management, Nanjing University of Science and Technology, Nanjing 210094, China
2College of Finance, Nanjing Agricultural University, Nanjing 210095, China
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Abstract  

[Objective] This paper tries to discover the impacts of micro-blog posts, industry news and company announcements on investors’ overtrading. [Methods] We examined the variations of the abnormal stock turnover rates before and after information disclosure from different channels. [Results] Media information posed significant impacts on overtrading, including the insider effect, information disclosure effect and lasting effect before, during and after the disclosure. Besides, investors were more likely to overtrade once exposed to negative news than positive news. The limited attention, selective attention, and mood fluctuation, were correlated to the investors’ trading behaviors. [Limitations] The sample size could be expanded. Individual investors may not be aware of the findings. [Conclusions] Media information catalyzes the overtrading of irrational investors.

Key wordsMedia Information      Over-trading      Turnover Rate      Event Study      Bounded Rationality     
Received: 22 November 2017      Published: 11 May 2018

Cite this article:

Yonghua Cen,Can Zhang,Chengyao Wu. Media Information and Overtrading——An Empirical Study on Micro-Blog Posts, Industry News and Company Announcements. Data Analysis and Knowledge Discovery, 2018, 2(4): 20-28.

URL:

http://manu44.magtech.com.cn/Jwk_infotech_wk3/EN/10.11925/infotech.2096-3467.2017.1172     OR     http://manu44.magtech.com.cn/Jwk_infotech_wk3/EN/Y2018/V2/I4/20

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