Abstract
During the last decade the world has faced a tremendous development of information technology and telecommunication. This study investigates the impact of rumors (released on the web) on common stock returns. The findings indicate that the market responds positively to rumors. In particular, the impact is stronger for single than for multi rumors and for initial rather than subsequent rumors. Our results may prove useful to financial and portfolio managers by helping them in determining how much weight to place on differenttypes of rumors.
Original language | English |
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Pages (from-to) | 273-281 |
Number of pages | 9 |
Journal | International Journal of Business |
Volume | 18 |
Issue number | 3 |
State | Published - 2013 |
Keywords
- Events analysis approach
- Initial and subsequent single and multiple rumors
- Market efficiency