The Effect of News on the Trading Behavior of Individual and Institutional Investors

• Main Authors: Jheng-Wei Shen, 沈政維
• Other Authors: Vivian W. Tai
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/19973248910479182524

碩士 === 國立暨南國際大學 === 財務金融學系 === 96 === Following attention effect found in Barber and Odean (2006), we adopt the columns on Economic Daily News and Commercial Times to further investigate whether the news layout have significant impact on trading behavior of individual and institutional investors. We find color layout contains more information value than black ones in neutral news while graph layout provide more than non-graph ones in positive news. No matter in bad or good news, retail investors trading reaction is reverse to news, and, at the same time, institutional investors trade the same direction as the information value provided by news. The intensive layout design in good news, color and graph, enhances individual investors’ reversed trading behavior, and make them loss more. On the other hand, the color layout in bad or neutral news makes individual more conservatism in their reverse strategies. Finally, we find that even different layout results in significantly different trading reactions, however, which are not the main source cause the distinguishing information value of layout. On the other hand, we find the news layout is related to the covered firm characteristics, and, hence, institutional stock preference may exactly happen to news framing design.