Investors’ cognitive dissonance in the stock market and the role of media

• Main Authors: Pei-shan Kao, 高珮珊
• Other Authors: Chih-hsiang Chang
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/61904792863871123431

碩士 === 國立高雄大學 === 金融管理學系碩士班 === 101 === The aim of this study is to explore the effect of the most possible unknown (the initial media coverage of a certain company’s earnings revision) and known (the official announcement of a certain company’s earnings revision) earnings-related news on stock returns, trading volume, and return volatility. In comparison with previous literature, this study takes a further look at the informational content of earnings-related news, including the investigations on short-term stock price, trading volume, return volatility, and long-term stock price. Additionally, this study examines the investors’ cognitive dissonance and the role of media. Empirical results indicate that both unknown and known earnings-related news provide useful information content to stock market. Moreover, cognitive dissonance and disposition effect have a great impact on investors’ reaction to the announcements of earnings-related news. In the end, the media play an important role on investors’ trading decision-making.