Research On The Impact Of Media Coverage On Inverstor Attention

Traditional financial theory assumes that the market is efficient,the stock price reflects all the public information and private information,which means that the media coverage has been fully received by investors.However,with the accelerated pace of information dissemination and in recent years the rapid development of Chinese securities market,every day the stock market is full of massive information,at the same time,Most investors in Chinese stock market are individual investors,by the influence of cognitive biases and limited attention,investment decisions of individual investors mainly rely on the information can draw their attention.Therefore,the study of "limited attention " in psychology has been more and more popular by behavioral finance scholars.In other words,only the information that investors pay attention can influence the behavior of investors in the stock market.Most of the existing literature on "limited attention " is devoted to the analysis of the impact of investor attention on stock prices.There is little literature to study the factors that influence investor's attention.In the face of media information expansion of the stock market,According to media reports information on the effects of investors' limited attention as a starting point,combined with the behavioral finance and the ‘limited attention 'theory,obtain the media reports information data of the Shanghai and Shenzhen stock markets about 2929 A shares in CSMAR database,from February 2013 to February2016 and their stock code search volume data in the 360 search engines.Taking the method of unsupervised machine learning to deal with the media information,as a result,the media coverage of the text is divided into 10 categories.Through studying the trend of the influence in the investors' limited attention after the information disclosure,the article analyses the transmission mechanism of information in Chinese stock market.Through empirical analysis about the impact of media coverage on the investors' limited attention,the main work is as follows:First,the information content of different media reports theme all can arouse investors' limited attention,including investors pay the highest degree of attention to the subject of mergers and acquisitions,but for the stock market flows of information content investors have a relatively low degree of concern;Second,the empirical results show that in Chinese stock market the media coverage is not the main channel for investors to obtain information.In other words,there is a serious lag in media reports.Four days before the media reported,investors have begun to raise their attention to the stock,the day of the information reported,the concern of the stock reached the maximum degree,then the next 6 days,investors' attention is maintained at a relatively stable level And that means investors' limited attention is persistent;Third,through the study of the financial information impact on investors' attention,we find that investors tend to pay more attention to the general information than the trivial details.Based on this,the paper puts forward some suggestions for media to reduce the content of the report information to achieve the expected purpose of effective communication.