Does Media Coverage of Stocks Affect Mutual Funds' Trading and Performance?

• 成果类型: Article
• 署名作者: Fang, Lily H.; Peress, Joel; Zheng, Lu
• 署名单位: University of California System; University of California Irvine
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhu056
• 发表日期: 2014
• 页码: 3441
• 关键词: attention; BEHAVIOR; Managers; news

摘要

We study the relation between mutual fund trades and mass media coverage of stocks. We find that funds exhibit persistent differences in their propensity to buy media-covered stocks. Moreover, this propensity is negatively related to their future performance. Funds in the highest propensity decile underperform funds in the lowest propensity decile by 1.1% to 2.8% per year. These results do not extend to fund sells, likely because of funds' inability to sell short. Overall, the findings suggest that professional investors are subject to limited attention.