Macro news and micro news: Complements or substitutes?

نویسندگان

چکیده

We study how the arrival of macro-news affects stock market's ability to incorporate information in firm-level earnings announcements. Existing theories suggest that macro and news are attention substitutes; announcements crowd out attention, causing less efficient processing find opposite: sensitivity announcement returns is 17% stronger, post-earnings drift 71% weaker, on days. This suggests a complementary relationship between micro consistent with either investor or transmission channels.

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ژورنال

عنوان ژورنال: Journal of Financial Economics

سال: 2022

ISSN: ['1879-2774', '0304-405X']

DOI: https://doi.org/10.1016/j.jfineco.2021.09.012