Investors’ Attention Allocation to Stock Analysis: The Role of Rating Deviation

Date
2022-01-04
Authors
Jin, Yu
Ye, Qiang
Pu, Jingchuan
Contributor
Advisor
Department
Instructor
Depositor
Speaker
Researcher
Consultant
Interviewer
Journal Title
Journal ISSN
Volume Title
Publisher
Volume
Number/Issue
Starting Page
Ending Page
Alternative Title
Abstract
Stock analysis is important for investors. However, little is known about how investors allocate their attention to different analyses. In the last two decades, online investment communities (OICs) have proliferated. In this study, we use investors’ online activities (i.e., comment and like) and amateur stock analysis in Seeking Alpha to explore how investors allocate their attention among different analyses by examining the effects of stock rating deviation on their attention. We measure the stock rating deviation of one analysis by comparing its stock rating with the previous rating for the same stock. The results show that the analyses with stock ratings that are more deviated from the existing ratings tend to receive more comments and likes from investors, indicating that rating deviation from the consensus positively impacts investor attention to stock analysis. In addition, the deviation’s negativity and the stock volatility strengthen the impact of rating deviation on investor attention. However, analysts’ busyness status negatively moderates this impact.
Description
Keywords
Crowd-based Platforms, amateur analyst, investor attention, rating deviation, stock analysis
Citation
Extent
10 pages
Format
Geographic Location
Time Period
Related To
Proceedings of the 55th Hawaii International Conference on System Sciences
Rights
Attribution-NonCommercial-NoDerivatives 4.0 International
Rights Holder
Email libraryada-l@lists.hawaii.edu if you need this content in ADA-compliant format.