Question: Consider again the amplification mechanism we discussed based on Hong, Kubik and Fishman (2012). They show that the immediate market response to good earnings news

Consider again the amplification mechanism we discussed based on Hong, Kubik and Fishman (2012). They show that the immediate market response to good earnings news is higher when a stock is highly shorted. Why does the mechanism only produce price amplification of good earnings surprises? Why not bad surprises?

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3. Im trying to point out what we need to do to make this happen

1. I try to create an image of the message

4. I try to make them feel what I really mean (1 is related to the visionary, 2 to the logical, 3 to action and 4 to the emotional).