Stock Spikes Around CEO Interviews
Posted in Animal Spirits
September 12, 2011
Do investors in aggregate respond to “staged” CEO visibility? In the August 2011 update of their paper entitled “CEO Interviews on CNBC”, Felix Meschke and Andy Kim investigate whether planned interviews with CEOs on financial television systematically affect associated stock prices over the days before and after the interview. The authors focus on the interval from two trading days before through ten trading days after interview date. Using daily stock price and trading data associated with 6,937 CEO interviews broadcast on CNBC during June 1997 through December 2006 (9.5 years), along with contemporaneous CNBC viewership levels and corporate news, they find that: (more…)