When Hollywood Movies Steal the Show, Stock Returns Dance More With the Market!
Date
Authors
Supervisor
Item type
Journal Article
Degree name
Journal Title
Journal ISSN
Volume Title
Publisher
Elsevier BV
Abstract
Hollywood film releases attract U.S. investors' attention away from the financial markets. This is reflected in lower trading activity and abnormal Google search volume for firm names between film and non-film days. The resultant investor inattention leads to a significantly higher stock return comovement with the market on film release days. Interestingly, films with A-list star actors and blockbuster movies exhibit a more pronounced impact than their counterparts. Finally, we show that being aware of this Hollywood film-induced mispricing can yield an annualized abnormal risk-adjusted return of up to 13.5% within five days around the release events.Description
Keywords
38 Economics, 3502 Banking, Finance and Investment, 3801 Applied Economics, 35 Commerce, Management, Tourism and Services, 1501 Accounting, Auditing and Accountability, 1502 Banking, Finance and Investment, 1801 Law, Finance, 3501 Accounting, auditing and accountability, 3502 Banking, finance and investment, 3801 Applied economics
Source
International Review of Financial Analysis, ISSN: 1057-5219 (Print), Elsevier BV, 95, 103501-103501. doi: 10.1016/j.irfa.2024.103501
Publisher's version
Rights statement
© 2024 The Authors. Published by Elsevier Inc. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).