Investors buy more following a CNBC interview conducted by an attractive anchorwoman

Some of the academic research we follow here at StockViz show how bizarre human decision making is. Consider this fine example (pdf):

• Investors get excited by the pre-announcement of the interview and ramp shares higher: from days -2 to 0 (interview day) firms experience a positive 4-factor abnormal return of 1.62%
• Then experience a negative abnormal return of -1.08% over the next ten days.
• There is abnormal amount of trading by individual investors on days the CEO is interviewed by CNBC.
• They keep on buying if the interview was both carried out by attractive anchorwoman and was watched by more male viewers.

It seems that we use a different head to trade when we see attractive women…

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