JOURNAL OF ACCOUNTING AND FINANCE
Trading Volumes, Security Prices, and Investor Attention: Evidence from Chinese ADRs
Author(s): Wenbin Tang, Lili Zhu
Citation: Wenbin Tang, Lili Zhu, (2018) "Trading Volumes, Security Prices, and Investor Attention: Evidence from Chinese ADRs ", Journal of Accounting and Finance, Vol. 18, ss. 3, pp. 70-79
Article Type: Research paper
Publisher: North American Business Press
Abstract:
Focusing on a sample of Chinese ADRs traded in the US stock markets between 2004 and 2014, this study examines the relationship between investor attention, trading volumes, and security prices on a two-week investment horizon. This study shows evidence that higher search intensity is associated with higher trading volume. Also, this study detects abnormal stock returns following surges in investor attention. The positive association between investor attention and stock prices is stronger among stocks that are mostly held / traded by individual investors. However, the positive abnormal return would disappear or even reverse quickly after day zero.