Complexity aversion when Seeking Alpha*

• 成果类型: Article
• 署名作者: Umar, Tarik
• 署名单位: Rice University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2021.101477
• 发表日期: 2022
• 关键词: INVESTOR ATTENTION; limited attention; RETURN VOLATILITY; stock opinions; lottery choice; cross-section; INFORMATION; earnings; news; uncertainty

摘要

A global field experiment with Seeking Alpha shows that textual complexity affects investor attention to news and market outcomes. Investors were randomly assigned different titles for the same news article. Holding the article fixed, a one-standard-deviation increase in complexity leads to 6.1% fewer views. Complexity is more off-putting for less-sophisticated investors, when attention is more limited, and when the news is likely less important. Exploiting an arbitrary rule for breaking ties between tested titles, I find that title complexity affects marketsdlowering announcement turnover and volatility.