The positive news story of an outperforming company generally results in poor performance after the story is released.
The average outperformance figure is 43% before the public release but only about 4% outperformance of its index after the release. Negative company coverage is followed by an outperformance of its index by 12%.
Three finance professors from the University of Richmond concluded that the article's contents are no longer news by the time the story is published.
Ignore the Hype
The positive news story of an outperforming company generally results in poor performance after the story is released.
The average outperformance figure is 43% before the public release but only about 4% outperformance of its index after the release. Negative company coverage is followed by an outperformance of its index by 12%.
Three finance professors from the University of Richmond concluded that the article's contents are no longer news by the time the story is published.