Advances in Economics, Management and Political Sciences

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Proceedings of the 2nd International Conference on Financial Technology and Business Analysis

Series Vol. 49 , 01 December 2023


Open Access | Article

Behavioral Finance Analysis of the Spillover Effect of Major Health Emergencies on Shipping and China's Investment Market

Sijie Han * 1
1 Zhejiang University of Finance and Economics, Hangzhou, Zhejiang, China

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 49, 144-149
Published 01 December 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Sijie Han. Behavioral Finance Analysis of the Spillover Effect of Major Health Emergencies on Shipping and China's Investment Market. AEMPS (2023) Vol. 49: 144-149. DOI: 10.54254/2754-1169/49/20230506.

Abstract

Cross-market risk conduction is an important risk source in the global investment market. In recent years, the global market risk linkage cause-d by major public health emergencies has attracted much attention. This paper selects the COVID-19 epidemic as an example, and uses the shipping market as a representative indicator of the global economy to try to analyze the complete path of the epidemic impact from the global economy to the Chinese stock market. From the perspective of behavioral finance, it analyzes the role of investor sentiment in this risk linkage. The empirical results show that the transmission of epidemic risk between Chinese stock markets deviates from the global economic fluctuations but has regularity, and the momentum effect brought by investors ' overconfidence and overreaction makes the stock market reaction short-term and volatility amplification. Risk aversion and limited attention make the market volatility caused by the deterioration of the epidemic greater than the mitigation. This paper creatively conducts a full-path study on the transmission of epidemic risk between macro-economic and stock markets, and uses behavioral finance theory to quantitatively verify the impact of investor sentiment, which provides a theoretical basis for cross-market risk transmission research.

Keywords

risk spillover, behavior finance, cross-market investment, VAR model

References

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Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
ISBN (Print)
978-1-83558-145-2
ISBN (Online)
978-1-83558-146-9
Published Date
01 December 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/49/20230506
Copyright
© 2023 The Author(s)
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated