What Moves Stock Prices: Another Look

Abstract

In 1989, Culter, Poterba, and Summers [1989] published a paper examining the extent to which ex post movements in aggregate stock prices could be attributed to the arrival of news. The research was motivated by Richard Roll's [1988] presidential address to the American Finance Association, in which he concluded that only about a third of the variation in market indices could be attributed to economic influences.

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