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Study: Corporate Announcements Drive Short‑Term Investor Behavior

cultureMar 25, 202623

A new paper in the Journal of Behavioral Finance shows corporate announcements move short-term share prices significantly. The 35-author study measures investor reactions and finds announcements trigger measurable short-term volatility. The paper lists Charles Larkin among its coauthors. The findings matter for firms, investors, and regulators WHO set disclosure practices and market rules.

Key Highlights

Journal of Behavioral Finance paper shows announcements trigger short-term share price swings.
Study has 35 coauthors analyzing investor reactions across multiple firms.
Findings imply disclosure rules and regulation should address short-term volatility.