The wisdom of crowds suggests that groups with more diversely informed individuals reach more informed decisions because their members are collectively more knowledgeable. I study this idea in the context of the market's response to earnings announcements by examining how information diversity across investors affects the efficiency of the price response to earnings news. I measure investors' information diversity based on their geographic dispersion, which I estimate using the locations of the requests for firms' filings to EDGAR. Greater geographic dispersion is associated with greater trading during the announcement period; this supports the use of geographic dispersion as a measure of information diversity. Consistent with my predictions, the price response to a firm's earnings news is more efficient when the firm's investors have greater information diversity. In further analysis, I find that the initial heightened trading for firms with more diversely informed investors subsides quickly after the announcement period.

群体的智慧表明，拥有更多不同信息的个体的群体可以做出更明智的决定，因为他们的成员集体知识更丰富。我通过研究投资者之间的信息多样性如何影响价格对收益消息的反应效率，在市场对收益公告的反应的背景下研究这个想法。我根据投资者的地理分布来衡量投资者的信息多样性，我使用公司向 EDGAR 提交文件的请求位置进行了估算。更大的地理分布与公告期间更大的交易量相关；这支持使用地理分布作为信息多样性的衡量标准。与我的预测一致，当公司' s投资者具有更大的信息多样性。在进一步分析中，我发现在公告期过后，对于拥有更多样化消息的投资者的公司来说，最初的交易量增加会迅速消退。