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MSGF Online Seminar: Background Noise TV Advertising Affects Real Time Investor Behavior by Prof Alminas Žaldokas
Amid the turbulence in stock markets, retail investors continue to look for investment ideas. With thousands of publicly-traded stocks available, many retail investors now often resort to their recent personal experiences when deciding on which stocks to buy or sell, or seek advice in social media. They could even be inspired by ads they see on TV.

In this seminar, Professor Žaldokas will share his insights on the effects of advertising on investor behavior and stock prices. There is a predictable, recurring, and robust pattern between investor exposure to television commercials and subsequent retail stock trading. In particular, Professor Žaldokas’s recent research study showed that within 15 minutes of seeing an ad for a firm’s product or service, investors begin searching for financial information on that firm’s stock. This surge of attention leads to a higher trading volume of the advertiser’s stock the following day – and contributes to a temporary rise in the stock price of that firm. The effects of advertising on investor behavior and stock prices are indeed more far reaching than has been previously believed.

Mar 24, 2021 08:00 AM in Hong Kong SAR

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