DF Lunch Seminar with Professor Charles Martineau, University of Toronto

    11 August 2023

With the Lunch Seminar series, the Department of Finance is bringing eminent and up-and-coming researchers from around the world to Luxembourg.

“When Crowds Aren’t Wise: Biased Social Networks and its Price Impact”

Speaker: Prof. Charles Martineau,
University of Toronto

DATE: Thursday, 21 September 2023

TIME: 12:15 – 13:30

Registration link


Information production from investment social networks around earnings announcements matters to price efficiency. Social networks’ content is excessively optimistic and associated with buying pressure before announcements. Such pressure deviates prices away from fundamentals before negative news and towards fundamentals before positive news. In rare cases of extreme pessimism, we find selling price pressure before positive and negative earnings news. Surges in retail trading and investors’ beliefs susceptible to manipulation amplify these effects. Our results suggest that social networks induce optimistic trading, consistent with a model of wishful thinking.

The seminar will be held in-person.

University of Luxembourg
Campus Kirchberg
JFK Building, Room Nancy / Metz
29, Avenue J.F. Kennedy
1855 Luxembourg

Please note that cold lunch will be provided for registered participants only.

This event is Supported by the Luxembourg National Research Fund (2022/17573036)