Firm centrality and limited attention

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buir.contributor.authorBozok, İhsan
buir.contributor.authorÖzyıldırım, Süheyla
dc.citation.epage500en_US
dc.citation.spage483en_US
dc.citation.volumeNumber78en_US
dc.contributor.authorBozok, İhsan
dc.contributor.authorÖzyıldırım, Süheyla
dc.date.accessioned2023-02-17T09:48:33Z
dc.date.available2023-02-17T09:48:33Z
dc.date.issued2021-12-17
dc.departmentDepartment of Managementen_US
dc.description.abstractThis study examines whether investor attention towards stocks is related to firm centrality in the input-output network. Using a data set of firms’ principal customers, we investigate the effect of firm centrality on the stock return predictability across economically linked firms. We find that stock prices do not promptly incorporate news about principal customers, generating return predictability which diminishes with the customer firm centrality levels. We show that this result is driven by limited investor attention. The evidence reveals that customer firms occupying more central positions in the network receive more investor attention. The results remain strong even when we make use of size-adjusted centrality values, indicating that the centrality effect is not driven by firm size. We find that more central firms are associated with greater financial analyst coverage and greater institutional investor equity holdings. Moreover, our analyses explicate that the source of information has an important role in attracting investor attention.en_US
dc.description.provenanceSubmitted by Ezgi Uğurlu (ezgi.ugurlu@bilkent.edu.tr) on 2023-02-17T09:48:33Z No. of bitstreams: 1 Firm_centrality_and_limited_attention.pdf: 1015750 bytes, checksum: 605dc0d8cf2cefca92173b92fcc6f814 (MD5)en
dc.description.provenanceMade available in DSpace on 2023-02-17T09:48:33Z (GMT). No. of bitstreams: 1 Firm_centrality_and_limited_attention.pdf: 1015750 bytes, checksum: 605dc0d8cf2cefca92173b92fcc6f814 (MD5) Previous issue date: 2021-12-17en
dc.embargo.release2023-12-17
dc.identifier.doi10.1016/j.iref.2021.12.006en_US
dc.identifier.eissn1873-8036
dc.identifier.issn1059-0560
dc.identifier.urihttp://hdl.handle.net/11693/111490
dc.language.isoEnglishen_US
dc.publisherElsevier BVen_US
dc.relation.isversionofhttps://doi.org/10.1016/j.iref.2021.12.006en_US
dc.source.titleInternational Review of Economics & Financeen_US
dc.subjectInvestor attentionen_US
dc.subjectNetwork centralityen_US
dc.subjectStock return predictabilityen_US
dc.titleFirm centrality and limited attentionen_US
dc.typeArticleen_US

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