Do WSJ stories with photos affect stock prices more than stories without photos?

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In this paper we examine the market reaction—price and volume—to the appearance of a firm in the Who’s News column of The Wall Street Journal. We differentiate between those firms whose articles are accompanied by a picture of an executive and a control set of firms whose articles on the same day are not accompanied by a picture. The results show a more pronounced market reaction to the “cum picture” articles, consistent with the incomplete information theory of Merton [1987] and the heuristic-based familiarity hypothesis. There is no evidence of significant long-run abnormal performance for the sample firms.

Source: “A Face Can Launch a Thousand Shares—And an 0.80% Abnormal Return” from Journal of Behavioral Finance, Volume 9, Issue 3 July 2008 , pages 107 – 116

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