Driven to Distraction: Extraneous Events and Underreaction to Earnings News

By David A. Hirshleifer, Sonya S. Lim, Siew Hong Teoh. 2009

1,445 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/3e00b615c7e4f7233a913e04297ba4fe30643f91

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Finance

Citations in the corpus

It Depends on Where You Search: Institutional Investor Attention and Underreaction to News (2017, background): “Thus, retail investor attention is more constrained than institutional investor attention suggesting that the investor distraction hypothesis of Hirshleifer, Lim, and Teoh (2009) is more relevant for retail investors than for institutional investors.”
Persuasion: Empirical Evidence (2010, neutral): “Hirshleifer et al. (2009) examine releases taking place on days with a higher number of earnings announcements, under the assumption that attention is a fixed resource.”
The role of the media in disseminating insider-trading news (2016, neutral): “…news lowers information asymmetry, as measured by bid- 5 Our setting is less relevant for a different form of investor inattention, discussed by Hirshleifer et al. (2009), under which investors have limited cognitive ability and so get distracted by competing contemporaneous disclosures,…”
Innovative Efficiency and Stock Returns (2013, neutral): “Hirshleifer et al. / Journal of Financial Economics 107 (2013) 632–654 633”
Liquidity Shocks and Stock Market Reactions (2014, methodology): “Following Hong, Lim, and Stein (2000), and Hirshleifer, Lim, and Teoh (2009), we further inves- tigate the attention and liquidity based mechanisms by studying long-term cumulative returns.”
Does Media Coverage of Stocks Affect Mutual Funds' Trading and Performance? (2014, positive): “Several papers document that the overall amount of attention a stock receives affects its valuation (e.g., DellaVigna and Pollet 2009; Hirschleifer et al. 2009; Fang and Peress 2009).”
Uncovering expected returns: Information in analyst coverage proxies (2017, neutral): “…signal, rather than more salient analyst-based signals such as their buy/sell recommendations or target prices, our findings are also potentially consistent with prior evidence that market prices fail to reflect low saliency information (e.g., Hirshleifer et al., 2009; Giglio and Shue, 2014 ).”
The Media and the Diffusion of Information in Financial Markets: Evidence from Newspaper Strikes (2013, neutral): “For further evidence on investors’ inattention, see Cohen and Frazzini (2008)), DellaVigna and Pollet (2009) and Hirshleifer et al. (2009).”
Investor Inattention and Friday Earnings Announcements (2009, methodology): “Following Hirshleifer, Lim, and Teoh (2007), we estimate the regression: R (h,H) t,k = α + βS t,k + β F S t,k d F t,k + φd F t,k + Γ 0 X t,k + Γ 1 S t,k X t,k + ε t,k , (8) where S t,k indicates the quantile corresponding to the earnings surprise, and hence S = 1, 2, ..., 11, and X t,k denotes the…”