Complexity Aversion When Seeking Alpha /
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Author / Creator: | Umar, Tarik, author. |
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Imprint: | 2017. Ann Arbor : ProQuest Dissertations and Theses, 2017 |
Description: | 1 electronic resource (61 pages) |
Language: | English |
Format: | E-Resource Dissertations |
Local Note: | School code: 0330 |
URL for this record: | http://pi.lib.uchicago.edu/1001/cat/bib/11715104 |
Other authors / contributors: | University of Chicago. degree granting institution. |
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ISBN: | 9780355078480 |
Notes: | Advisors: Lubos Pastor; Kelly Shue Committee members: Amir Sufi; Richard Thaler. Dissertation Abstracts International, Volume: 78-12(E), Section: A. English |
Summary: | I provide causal evidence that textual complexity affects investor and market behavior, using two complementary settings. First, examining field data with randomization from Seeking Alpha, I find that a standard-deviation increase in headline length (negativity) leads to 12%-fewer (2%-more) views. The effects are larger for less-sophisticated investors. Second, examining firm-earnings releases, I find a market effect by instrumenting title length with company-name length. A standard deviation increase in length leads to 5%-less-announcement turnover, 50-basis-points-tighter-intraday-price ranges, and 40-basis-points-return underreactions, correcting within one month. |
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