Investors' Attention Allocation to Stock Analysis: The Role of Rating Deviation

Yu Jin, Qiang Ye, Jingchuan Pu

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Stock analysis is important for investors. However, little is known about how investors allocate their attention to different analyses. In the last two decades, online investment communities (OICs) have proliferated. In this study, we use investors' online activities (i.e., comment and like) and amateur stock analysis in Seeking Alpha to explore how investors allocate their attention among different analyses by examining the effects of stock rating deviation on their attention. We measure the stock rating deviation of one analysis by comparing its stock rating with the previous rating for the same stock. The results show that the analyses with stock ratings that are more deviated from the existing ratings tend to receive more comments and likes from investors, indicating that rating deviation from the consensus positively impacts investor attention to stock analysis. In addition, the deviation's negativity and the stock volatility strengthen the impact of rating deviation on investor attention. However, analysts' busyness status negatively moderates this impact.

Original languageEnglish (US)
Title of host publicationProceedings of the 55th Annual Hawaii International Conference on System Sciences, HICSS 2022
EditorsTung X. Bui
PublisherIEEE Computer Society
Pages4422-4431
Number of pages10
ISBN (Electronic)9780998133157
StatePublished - 2022
Event55th Annual Hawaii International Conference on System Sciences, HICSS 2022 - Virtual, Online, United States
Duration: Jan 3 2022Jan 7 2022

Publication series

NameProceedings of the Annual Hawaii International Conference on System Sciences
Volume2022-January
ISSN (Print)1530-1605

Conference

Conference55th Annual Hawaii International Conference on System Sciences, HICSS 2022
Country/TerritoryUnited States
CityVirtual, Online
Period1/3/221/7/22

All Science Journal Classification (ASJC) codes

  • General Engineering

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