Use this URL to cite or link to this record in EThOS: http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.605141
Title: Information explicitness and investors' behaviour
Author: Shang , Zilu
Awarding Body: University of Reading
Current Institution: University of Reading
Date of Award: 2013
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Abstract:
This thesis is a comprehensive study how information explicitness - the quantity of detail in a piece of information - affects investors behaviour in stock markets, from the perspectives of experimental and real-stork-market contexts. The core question addressed by this thesis , whether investors always benefit from analysing more dctailed l information in a stock market . ll1lhe first stage. surveys are conducted among unsophisticated (students) and sophisticated (financial industry staff) investors, who arc required \0 for'1:cast the probability of occurrence of uncertain events and make trading decisions accordingly. The results generated from the two surveys indicate that both sophisticated and unsophisticated investors are prone to project a higher probability of occurrence when an uncertain main event is informed by more detailed (explicit) information, However. the impact of information explicitness on investors trading decisions is not significant. Moving toward a situation in a real stock market. a trading experiment based on a trading simulations carried out in a laboratory. . As well as confirming that explicit information increases investors' judged probabilities of occurrence On uncertain events, the results also extend the conclusions regarding trading decisions and performance to show that information explicitness significantly drives investors' performance efficiency (shortening their reaction times but impairing the accuracy of their activities) but not their performance effectiveness (return, trading volumes, and holding positions)_ Finally, an empirical study focuses on how abnormal sentiment information released by FTSE 100 companies and by newspapers can affect market performance. . Although the results are consistent with previous studies, which have shown that negative information inversely affects returns and positively influence~ trading volumes, this study also convey ' that the impact of negative information is restricted to the listed companies' original disclosure and is mainly observed on the announcement day. Additionally, there is an interaction between the abnormal occurrence of negative words and media coverage. Newspaper stories dilute the effect of negative words in companies announcements on returns, while strengthening their impact on trading volumes.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID: uk.bl.ethos.605141  DOI: Not available
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