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Mad Money

Mad Money is a television program hosted by Jim Cramer that airs weekday evenings on CNBC. It generally consists of two segments: the Opening Round, where a few stocks are discussed with some depth, and the Lightning Round, where viewers call in with a stock and Cramer advises them to buy or sell. The consistently wired Cramer is known for his "booyahs" when touting a stock.

A recent paper by Northwestern University professors Joseph Engelberg, Caroline Sasseville, and Jared Williams called "Attention and Asset Prices: The Case of Mad Money" (link: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=870498) demonstrated that Cramer's recommendations on the show do cause the stocks to move the next day, though the effect dissipates within a few trading days.

While Mad Money is a popular show, it is probably best appreciated for its entertainment value than for its stock ideas.

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