Contagious Speculation and a Cure for Cancer: A Nonevent that Made Stock Prices Soar

By Gur Huberman, Tomer Regev. 2001

932 citations recorded by the source corpus.

Subfields: Pulmonary and Respiratory Medicine

View Paper: https://www.semanticscholar.org/paper/8654a1e388aa00e6729563f98fafd358bd819ec5

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In Pulmonary and Respiratory Medicine

Citations in the corpus

Limited Attention and the Allocation of Effort in Securities Trading (2008, background): “…and these actions can explain well-documented patterns in asset return covariation.3 Consistent with these theories, Huberman (2001), Huberman and Regev (2001), and Barber and Odean (2007) provide evidence that investors tend to focus on familiar or attentiongrabbing stocks and that…”
Do Managers Overreact to Salient Risks? Evidence from Hurricane Strikes (2017, background): “This literature shows that investors pay more attention to salient news (Barber and Odean, 2008), which affects stock prices (Ho and Michaely, 1988; Klibanoff, Lamont, and Wizman, 1998; Huberman and Regev, 2001).”
Google Search Intensity and Its Relationship with Returns and Trading Volume of Japanese Stocks (2014, neutral): “Early empirical studies examine the relationship between stock price movements and their appearance in the mass media.6 For instance, Huberman and Regev (2001) report that a mention in the New York Times of a small biotechnology company could generate a positive effect on its stock prices.”
Disagreement and the Stock Market (2007, background): “One of the cleanest examples of this phenomenon comes from Huberman and Regev (2001), who examine the stock-market behavior of a single biotechnology firm, EntreMed.”
Textual analysis in finance (2019, background): “One advantage in using this source of information is that even if the media is not reporting all relevant information to pricing stocks, we can have attention focused to the information reported, which is evidenced to influence investors behavior (Huberman and Regev, 2001; Barber and Odean, 2008; Lo”
Persuasion: Empirical Evidence (2010, neutral): “Huberman & Regev (2001) chronicle the market reaction to results suggesting a drug patented by the company EntreMed, Inc., might cure a type of cancer.”
The Adaptive Markets Hypothesis (2004, background): “overreaction (DeBondt and Thaler, 1986), loss aversion (Kahneman and Tversky, 1979; Shefrin and Statman, 1985; Odean, 1998), herding (Huberman and Regev, 2001), psychological accounting (Tversky and Kahneman, 1981), miscalibration of probabilities (Lichtenstein et al.”
Limited Investor Attention and Stock Market Misreactions to Accounting Information (2011, background): “…that limited attention affects capital markets; indeed,Daniel, Hirshleifer, and Teoh(2002) suggest that limited attention may underlie an array of anomalous patterns in securities market trading and prices (e.g.,Huberman and Regev 2001; Hou and Moskowitz 2005; Hong, Torous, and Valkanov 2007).”
Learning with Information Capacity Constraints (2005, background): “According to Huberman and Regev (2001), the publication of an article in the New York Times about a new cancer-curing drug from EntreMed attracted great public attention and generated a daily return of more than 300% in its stocks, even though the same story had already been published more than…”
Game On: Social Networks and Markets (2021, result): “In the model, repeating old news can move prices, especially if the repeat news is displayed prominently to many people, as naive investors keep reacting to the same information, consistent with the evidence of Huberman and Regev (2001) and Tetlock (2011).”