Complexity aversion when SeekingAlpha

Tarik Umar

Journal of Accounting and Economics, 2022, vol. 73, issue 2

Abstract: A global field experiment with Seeking Alpha shows that textual complexity affects investor attention to news and market outcomes. Investors were randomly assigned different titles for the same news article. Holding the article fixed, a one-standard-deviation increase in complexity leads to 6.1% fewer views. Complexity is more off-putting for less-sophisticated investors, when attention is more limited, and when the news is likely less important. Exploiting an arbitrary rule for breaking ties between tested titles, I find that title complexity affects markets—lowering announcement turnover and volatility.

Keywords: Complexity; Heuristics; Investor attention (search for similar items in EconPapers)
JEL-codes: D83 G14 G41 M41 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaecon:v:73:y:2022:i:2:s0165410121000926

DOI: 10.1016/j.jacceco.2021.101477

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