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RESULTADOS Y DISCUSION

3.1. DE LA MATERIA PRIMA

3.2.2. Experimento N° 2: Piqueladode la Piel

Table4reportstheresultsoftheimpactofinvestorattentiononthestockliquidity.AsshowninEq.(3),weregressthe relativebid-askspreadontheSVI,onlinemediacoverage,advertisingexpenditureandasetofcontrolvariables12.Inmodel

I,weincludeonlytheSVIandthecontrolvariables.Capturingtheimpactofactiveattention,thecoefficientoftheSVIis significantlynegative,whichsuggeststhathigherlevelofinvestorattentionreflectedbysearchfrequencyleadstoareduced bid-askspreadandthereforeimprovedstockliquidity.ModelsIIandIIIincorporatepassiveattentionmeasuresincluding Googleonlinenewscoverageandadvertisingexpenditure,whilemodelIVadjuststheclusteredstandarderrorbyapplying thebootstrappingregression.ModelVisbasedonthereducedsampleof6742observationswithnon-missingadvertising expenditure.ThecoefficientsoftheSVIremainnegativeandsignificantacrossthemodels,suggestingthatinvestors’active attentionhelpstoimprovestockliquidity.ConsistentwithGrullonetal.(2004),thecoefficientofadvertisingexpenditure issignificantlynegativeinmodelV.

WealsoreplicatetheanalysisbyreplacingtheSVIwiththechangeinSVI,andpresenttheresultsinPanelBofTable4.In modelI,thecoefficientoftheSVIchangeissignificantlynegative,suggestingthatanincreaseininvestorattentionimproves liquidity.TheresultsremainrobustaftercontrollingforthepassiveattentionmeasuresinmodelsIIandIII,afterapplying thebootstrappingregressionmodeltoadjusttheclusteredstandarderrorinmodelIVandafterdroppingtheobservations withnoadvertisementexpenditureinmodelV.Inuntabulatedtest,wealsoapplyfirmfixedeffectsorreplacethelevelof liquiditywiththechangeinliquidity13asthedependentvariable.Theresultsremainconsistentinthatthesignificantly

negativecoefficientsofthechangeinSVIsupportourpredictionthatincreasedinvestorattentionhelpstopromotestock liquidity14.

Thereareseveralaspectsofliquidity,andbid-askspreadreflectstheinventoryaspect.Stoll(1978)andHoandStoll (1981)arguethatliquiditydependsonfactorsthatinfluencetheriskofholdinginventoryandextremeeventsthatprovoke orderimbalanceandtherebycauseinventoryoverload.Tocompensatetheinventoryholdingcost,dealerswillpurchase sharesatthebidpricebelowthe“true”priceandsellsharesattheaskpriceabovethe“true”price,generatingthebid-ask spread.

Bid-askspread,however,mayfailtocaptureotheraspects.Forexample,GrossmanandMiller(1988)showthatliquidityis alsodeterminedbythedemandandsupplyofimmediacy,andbid-askspreaddoesnotreflectthecostofsupplyingimmediacy tothemarket.Kyle(1985)notestheinformedspeculationaspectofliquiditywhenmarketmakerscannotdistinguish betweenorderflowgeneratedbyinformedtradersorliquiditytraders,theysetthepriceasanincreasingfunctionofthe imbalanceintheorderflow,whichmayindicateinformedtrading.Thissuggestsapositiverelationbetweenthetransaction volumeandpricechange,knownaspriceimpact.Itcanbeconsideredasthefirstderivativeoftheeffectivespreadwith respecttotheordersizeandreflectsthecostofdemandingadditionalinstantaneousliquidity.Amihud(2002)measuresit asthedailypriceresponseassociatedwithonedollaroftradingvolume,calculatedasthedailyratioofabsolutestockreturn todollartradingvolumeaveragedoverallpositivevolumedays.

12AsshowninthePanelBoftheAppendix,wedivideoursamplefirmsintolow-attentionandhigh-attentionsubsamplesbasedonthemedianlevel

oftheSVIandtestthedifferenceinthemeansoftherelativebid-askspread.Theresultsshowthattherelativebid-askspreadissignificantlysmallerin thehigh-attentionsubsample.Whenwefurtherdividethesub-samplesaccordingtomarketcapitalization,intosmallandlargefirms,thedifferencein thebid-askspreadstillexistsinbothtypesoffirm.Thedifferenceismorepronouncedforsmallerfirmsbecausetheyare,ingeneral,lessrecognizedby investors,andthereforemorelikelytobenefitfromincreasedactiveattentionfrominvestors.Theresultsareavailableuponrequest.

13Thechangeinliquidityismeasuredbytherelativespreadinmonthtminustheaveragerelativespreadbetweenmontht1andmontht3. 14ThepanelCinappendixalsoreportstheresultsbyapplyingthefirmfixedeffects.Theresultsofthreeoutoffourregressionmodelsarebroadlyin

linewithourmainresults.Petersen(2009)givespossibleexplanationsfortheminorinconsistency:thestandarderrorsclusteredbyfirmareunbiased andproducecorrectlysizedconfidenceintervalswhetherthefirmeffectispermanentortemporarywhilethefixedeffectandrandomeffectsmodelonly producesunbiasedstandarderrorswhenthefirmeffectispermanent.

20 R.Ding,W.Hou/Int.Fin.Markets,Inst.andMoney37(2015)12–26

Table4

Activeattentionandstockliquidity.

PanelA.SVIandrelativebid-askspread

Dependentvariablerelativespreadin%

ModelI ModelII ModelIII ModelIV ModelV

SVI −0.01**(−2.18) −0.01**(−2.17) −0.01***(−2.11) −0.01*(−1.73) −0.01**(−1.87) Ln(numberofnews) 0.01*(1.71) 0.01*(1.8) 0.01(1) 0.01(0.15) Ln(advertising) −0.003(−1.42) −0.01(−0.34) −0.02***(−2.56) Ln(firmage) −0.01(−0.73) −0.01(−0.69) −0.01(−0.70) −0.02***(−2.44) −0.04***(−3.72) ROA −0.01(−0.46) −0.01(−0.41) −0.01(−0.44) −0.03***(−2.72) −0.12***(−5.88) Ln(firmsize) 0.003(0.39) −0.001(−0.17) 0.001(0.16) 0.01(0.43) 0.03***(4.22) 1/shareprice 2.95***(8.04) 2.93***(7.99) 2.94***(7.99) 3.17***(11.58) 3.64***(9.77) Ln(turnover) 0.12***(7.68) 0.12***(7.64) 0.12***(7.69) 0.15***(13.24) 0.16***(8.32) Ln(returnvolatility) 2.47***(84.99) 2.47***(84.95) 2.47***(84.86) 1.93***(87.23) 1.82***(38.39) NASDAQ −0.03(−1.28) −0.03(−1.14) −0.03(−1.14) 0.02(1.43) 0.01(0.11) Year Y Y Y Y Y Industry Y Y Y Y Y

Adjustclustererrors N N N Y Y

Excludemissingadvertising N N N N Y

Observation 14,690 14,690 14,690 14,690 6742

Adj.R2 0.793 0.793 0.793 0.56 0.55

PanelB.ChangeinSVIandrelativebid-askspread

Dependentvariablerelativespreadin%

ModelI ModelII ModelIII ModelIV ModelV

ChangeinSVI −0.24***(−4.30) −0.24***(−4.30) −0.24***(−4.30) −0.19***(−4.58) −0.27***(−6.45) Ln(numberofnews) 0.01*(1.7) 0.01*(1.79) 0.01(0.88) 0.01(0.12) Ln(advertising) −0.003(−1.42) −0.01(−0.16) −0.01**(−2.47) Ln(firmage) −0.01(−0.67) −0.01(−0.63) −0.01(−0.64) −0.02***(−3.23) −0.04***(−4.05) ROA −0.01(−0.39) −0.01(−0.35) −0.01(−0.39) −0.03***(−3.85) −0.11***(−6.11) Ln(firmsize) 0.003(0.38) −0.001(−0.19) 0.001(0.16) 0.01(0.32) 0.03***(3.56) 1/shareprice 2.97***(8.11) 2.95***(8.05) 2.96***(8.06) 3.25***(10.31) 3.74***(10.54) Ln(turnover) 0.12***(7.76) 0.12***(7.71) 0.13***(7.77) 0.15***(17.47) 0.16***(8.3) Log(returnvolatility) 2.48***(85.28) 2.47***(85.24) 2.47***(85.16) 1.93***(89.67) 1.83***(43.63) NASDAQ −0.03(−1.24) −0.02(−1.11) −0.02(−1.11) 0.01(0.94) 0.01(0.2) Year Y Y Y Y Y Industry Y Y Y Y Y

Adjustclustererrors N N N Y Y

Excludemissingadvertising N N N N Y

Observation 14,690 14,690 14,690 14,690 6742

Adj.R2 0.794 0.794 0.794 0.56 0.55

PanelC.Activeattentionandamihudilliquiditymeasures

Dependentvariable

ILLIQ ILLIQMA SD(ILLIQ)

ModelI ModelII ModelIII

ChangeinSVI 0.02(1.01) 0.01(1.4) 0.01(0.22) Ln(numberofnews) 0(0.81) 0(0.81) 0(0.79) Ln(advertising) 0(1.37) 0(1.38) 0(1.36) Ln(firmage) −0.01(−1.16) −0.01(−1.19) −0.01(−1.12) ROA −0.02(−1.33) −0.02(−1.32) −0.02(−1.34) Ln(firmsize) −0.02(−1.48) −0.02(−1.51) −0.02(−1.47) 1/shareprice −0.08(−1.17) −0.1(−1.17) −0.1(−1.24) Ln(turnover) −0.14(−1.52) −0.16(−1.51) −0.16(−1.52) Ln(returnvolatility) 0.1(1.53) 0.11(1.47) 0.11(1.53) NASDAQ 0.04(1.44) 0.04(1.43) 0.04(1.53) Year Y Y Y Industry Y Y Y Observation 14690 14690 14690 AdjR2 0.2423 0.1561 0.2311

PanelAandBofthistablereportstheestimatesfrompanelregressionsrelatingtherelativebid-askspreadtoactiveinvestorattention(SVI).Thesample includestheconstituentsoftheS&P500overaperiodofsixyearsfromJanuary2004toDecember2009.TheSVIisthesearchfrequencyofthestockticker, obtainedfromGoogleTrends.ThechangeintheSVIisthedifferencebetweentheSVIinweektandthemedianvalueoftheSVIduringthepreviouseight weeks.The“numberofnews”istheonlinemediacoveragefromGoogleNews.AdvertisingexpensesareobtainedfromCompustat.Therelativebid-ask spreadisthemonthlyaverageoftheratioofthedailyinsidespreadtothemidpointofthedailyinsidespread,obtainedfromCRSP.Firmageisthenumber ofyearsforwhichthefirmhasbeenincludedinCRSP.ReturnonassetsisconstructedfromCompustatastheannualoperatingincomebeforedepreciation, scaledbytotalassets.Firmsizeisthemarketcapitalization,calculatedastheproductofthetotalnumberofoutstandingsharesandtheannualclosing price.ShareturnoverisconstructedfromCRSPasthemonthlyaverageofthesharevolume,dividedbysharesoutstanding.Returnvolatilityisthemonthly averageofthestandarddeviationofdailyreturns,fromCRSP.NASDAQequals1forfirmslistedontheNASDAQ,and0otherwise.

PanelCpresentstheresultsbasedontheAmihud(2002)liquiditymeasures.ILLIQisthemonthlyaverageforthedailyratioofabsolutereturntothedollar volumeofthestock.ILLIQMAistheratioofthevariableILLIQtoitsmonthlymeanacrossallstocks.SD(ILLIQ)isthemonthlystandarddeviationofILLIQ (LangandMaffett,2011).Wecorrectforstandarderrorsusingclustering.

R.Ding,W.Hou/Int.Fin.Markets,Inst.andMoney37(2015)12–26 21

Toexplorewhethertheactiveattentionofretailinvestorsalsoaffectsotheraspectsofliquidity,wereplacethedependent variablewiththeAmihud(2002)liquiditymeasure(ILLIQ)andtheresultsarereportedinPanelC.ThecoefficientofChange inSVIisinsignificant.WhenweincorporateILLIQMA,estimatedastheratiooftheILLIQtotheaverageILLIQofallstocksin themarket,orincorporatethestandarddeviationofILLIQ(LangandMaffett,2011),thecoefficientsofattentionmeasures remaininsignificant.Theresultssuggestthattheactiveattentioncouldsignificantlymitigatetheadverse-selectiontypeof illiquidity,butnottheprice-impacttypeofilliquidity.Amihud(2002)alsoindicatesthatalthoughbid-askspreadisafiner andbettermeasure,thereisnoonesinglemeasurethatcapturesallitsaspects.AssuggestedbyDaetal.(2011),SVIlargely reflectstheattentionofretailinvestorsbecauseinstitutionalinvestorshaveaccesstoprofessionalinformationvendors.In generalthetradingvolume(indollarterm)ofanaverageretailinvestorislesslikelytobelarge,whichsuggeststhattheir tradingbehaviormighthavediminishedeffectonthestockpricereactiontotrading.