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Discussion of “earnings announcement promotions: A Yahoo Finance field experiment”

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  • Engelberg, Joseph

Abstract

Lawrence et al. run a field experiment on Yahoo Finance which randomly promotes some earnings stories. They find that firms in promoted stories have higher contemporaneous returns. I begin by reviewing the media and finance literature and discuss the difficulty in solving the identification problem Lawrence et al. wish to solve. I then discuss how their results fit with existing theories of attention and suggest some changes that could help pin down which theory best explains the results. Finally, I discuss possible directions for future research.

Suggested Citation

  • Engelberg, Joseph, 2018. "Discussion of “earnings announcement promotions: A Yahoo Finance field experiment”," Journal of Accounting and Economics, Elsevier, vol. 66(2), pages 415-418.
    • Handle: RePEc:eee:jaecon:v:66:y:2018:i:2:p:415-418
    DOI: 10.1016/j.jacceco.2018.08.005
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    References listed on IDEAS

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