Attention metrics and stock market reactions to accounting events: A literature review

Abstract

Purpose: This paper systematically reviews the literature on how investor attention, captured via various metrics, influences stock market reactions to accounting events such as earnings announcements, financial disclosures, and annual reports. Methodology/approach: The study employs a dual-method strategy: bibliometric analysis and the TCCM (Theory, Context, Characteristics, Methodology) framework. A total of 42 articles published between 2000 and 2025 were analysed to identify research trends, gaps, and future directions. Findings: There is a growing reliance on attention proxies – including media coverage, search engine queries, social media activity, and textual complexity metrics – as mediators of market reactions. Investor attention is unevenly distributed and shaped by disclosure timing, complexity, and format. Attention significantly influences stock returns and trading volume, particularly in behavioural finance contexts. Research limitations/implications: The review is limited to articles published in English and sourced from Google Scholar. Future research should address emerging markets and examine the role of AI in modelling attention dynamics. Originality/value: This is the first review to integrate attention metrics with accounting event outcomes using bibliometric and TCCM approaches. It offers a comprehensive synthesis that bridges behavioural finance, accounting, and information economics. The findings offer insights for improving disclosure clarity and timing strategies. They can also inform regulatory practices aimed at enhancing market transparency.