The COVID-19 pandemic: How important is face-to-face interaction for information dissemination?

Research output: Contribution to journalArticlepeer-review

Abstract

Does face-to-face interaction still facilitate information transfer despite proliferating communication technologies? We use the COVID-19 collapse in such interactions to examine their influence on information flow in the stock market around earnings announcements. Using daily, county-level abnormal mobility of U.S. residents to proxy for face-to-face interaction, we find that firms located in counties with lower abnormal mobility experience a weaker immediate price reaction to earnings announcements and a larger post-announcement drift. Our findings suggest that lower face-to-face interactions dampen price discovery in financial markets, and that investor attention is a potential mechanism of this effect.
Original languageEnglish
Article number100674
JournalGlobal Finance Journal
Volume54
Early online date25 Sep 2021
DOIs
Publication statusPublished - Nov 2022

Fingerprint

Dive into the research topics of 'The COVID-19 pandemic: How important is face-to-face interaction for information dissemination?'. Together they form a unique fingerprint.

Cite this