Online Information Acquisition and Investor Trading
43 Pages Posted: 18 Sep 2011 Last revised: 9 Dec 2012
Date Written: December 1, 2012
We examine the empirical associations between online information acquisition and several aspects of investors’ trading activities. We find that trading volume and buy-sell imbalance between small and large traders are positively associated with abnormal ticker search on Google. These positive trading-search associations are more pronounced for firms with large accruals, during earnings announcement periods, and in more recent years. Our evidence is consistent with information acquisition triggers investor disagreement.
Keywords: Information Acquisition, Trading Volume, Buy-Sell Imbalance, Disagreement, Ticker Search
JEL Classification: G14, M41
Suggested Citation: Suggested Citation