Research on Listed Companies Clarification Announcements’ Stock Prices Reaction and its Influencing Factors

Authors

Wei Zhang, School of Information, Central University of Finance and Economics, Beijing, 100081, ChinaFollow
Wei-xi Chen, School of Information, Central University of Finance and Economics, Beijing, 100081, ChinaFollow
Jun-feng Li, School of Finance, Central University of Finance and Economics, Beijing, 100081, ChinaFollow
Hui-min Cao, School of Information, Central University of Finance and Economics, Beijing, 100081, ChinaFollow

Abstract

Using text analysis, this paper analyzes the textual features of clarification announcements released in the stock market. According to behavioral finance, cognitive psychology, event study and multivariate statistical methods are used to depict the characteristics of texts such as readability, descriptive approach, and structure. From the perspective of the reaction of stock prices, this paper explores whether the listed companies’ clarification announcements are effective and what influences their effectiveness, using investor attention as a moderating factor.

Recommended Citation

Zhang, Wei; Chen, Wei-xi; Li, Jun-feng; and Cao, Hui-min, "Research on Listed Companies Clarification Announcements’ Stock Prices Reaction and its Influencing Factors" (2020). WHICEB 2020 Proceedings. 34.
https://aisel.aisnet.org/whiceb2020/34