Intermarket Competition: Evidence from Trading Venue Short Sales

Samadi, Mehrdad

doi:10.2139/ssrn.2619839

Cited by 1 publication

(2 citation statements)

References 114 publications

(131 reference statements)

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“…RavenPack is a news provider that collects all major real-time news wires and news from other Internet sources, including financial and business websites, such as the Wall Street Journal , Dow Jones, Barron's, blogs, and local and regional newspapers. Although researchers in finance and accounting have increasingly used RavenPack (e.g., Akbas et al 2016; Kelley and Tetlock 2013; Samadi 2016; Shroff et al 2013), marketing researchers have not yet widely adopted it.…”

Section: Methodsmentioning

confidence: 99%

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When 1 + 1 > 2: How Investors React to New Product Releases Announced Concurrently with Other Corporate News

Warren

Sorescu

2017

Journal of Marketing

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Firms routinely use press releases to announce the launch of their new products. An examination of these press releases shows that in approximately 7% of cases, firms issue new product announcements concurrently with other corporate announcements. However, the consequences of these actions are unknown because event studies typically eliminate concurrent announcements in an attempt to avoid their confounding effects. The authors use a comprehensive sample of press releases issued by publicly traded U.S. firms to document the consequences of firms announcing the release of a new product concurrently with another corporate announcement that conveys good news. Drawing on Merton's (1987) model of capital market equilibrium with incomplete information, the authors identify three conditions that are conducive to the issuance of concurrent new product announcements. They then verify that under these conditions, the increase in shareholder value associated with concurrent announcements is higher than that associated with issuing two similar announcements separately. This research provides insights into how firms can leverage corporate communications to increase stock prices.

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