This paper estimates the effect of presentation of information on financial markets, using quasi-random variation in prominent "front page" positioning of news on the Bloomberg terminal. The front page and non-front page articles are indistinguishable by either algorithmic analysis or by the target audience of active finance professionals. Front page positioning induces 280% higher trading volumes and 180% larger price changes within the first ten minutes after publication. Front page articles also see a stronger price drift from these initial reactions for the next 30-45 minutes. Subsequently, non-front page news begins to catch up, but the incorporation of non-front page information is substantially more gradual. As a result, the initial effects of positioning persist for days after publication. The effects induced by positioning are even stronger than the differences between articles of varying editorial importance.
Job Market PaperBest Ph.D. Paper Award, 2017 European Finance Association2017 WFA Cubist Systematic Strategies PhD Candidate Award for Outstanding ResearchFinalist, 2016 Hillcrest Behavioral Finance Award