Does Investor Attention Affect Trading Volume In The Brazilian Stock Market?
Claudio Barbedo and
Gustavo Araujo ()
No 472, Working Papers Series from Central Bank of Brazil, Research Department
Given the large amount of information available about companies and stocks, investors have to be selective about the information they process. This behavior is related to the attention effect, which comes from the natural human incapacity to process all existing information. The aim of this paper is to investigate the relationship between a proxy of attention effect, media coverage, and trading volume in the Brazilian stock market. Media coverage may attract unsophisticated investors. The results suggest that, in periods with high stock index level, there is a strong positive reaction of the trading volume on the same day of the news release in printed newspapers. Moreover, this relation occurs only if the news is negative for the firm. In addition, less visible companies in the media are more susceptible to the attention effect when news is more widespread
New Economics Papers: this item is included in nep-fmk and nep-lam
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Journal Article: Does investor attention affect trading volume in the Brazilian stock market? (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bcb:wpaper:472
Access Statistics for this paper
More papers in Working Papers Series from Central Bank of Brazil, Research Department
Bibliographic data for series maintained by Rodrigo Barbone Gonzalez ().