Advances in Economics, Management and Political Sciences

- The Open Access Proceedings Series for Conferences


Proceedings of the 2022 International Conference on Financial Technology and Business Analysis (ICFTBA 2022), Part 2

Series Vol. 6 , 27 April 2023


Open Access | Article

The impact of investors’ attention on stock price

Zongye Yang * 1
1 Zhejiang Yuexiu University, Zhejiang, Shaoxing, 2801 Qunxian Middle Road, China

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 6, 124-135
Published 27 April 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 Zongye Yang. The impact of investors’ attention on stock price. AEMPS (2023) Vol. 6: 124-135. DOI: 10.54254/2754-1169/6/20220164.

Abstract

From the perspective of investor attention to market stocks, this paper analyzes investors' visitor volume of certain stocks and sentiments of stock indexes. I compare the search vol-ume and stock prices of Apple and Tesla to specifically observe the relationship between stock prices and investor attention in individual companies. Then I examine the search vol-ume and index of SP500 and SSEC to explain the significant disparity in the impacts of in-vestor attention in different regions. It shows that increased attention is positively related to stock price volatility, i.e., positive emotional signals (negative emotional signals) will lead to higher (lower) stock prices.

Keywords

Investors’ Attention, Visitor Volume, Sentiment

References

1. Kahneman D. Attention and effort[M]. Englewood Cliffs, NJ: Prentice-Hall, 1973.

2. Peng L, Xiong W. Investor attention, overconfidence and category learning[J]. Journal of Financial Eco-nomics, 2006, 80(3): 563-602.

3. Barberis N, Shleifer A, Vishny R. A model of investor sentiment[J]. Journal of financial economics, 1998, 49(3): 307-343.

4. Hsieh S F, Chan C Y, Wang M C. Retail investor attention and herding behavior[J]. Journal of Empirical Finance, 2020, 59: 109-132.

5. Baker M, Wurgler J. Investor sentiment in the stock market[J]. Journal of economic perspectives, 2007, 21(2): 129-152.

6. Grinblatt M, Keloharju M. What makes investors trade?[J]. The Journal of Finance, 2001, 56(2): 589-616.

7. Barber B M, Odean T. Boys will be boys: Gender, overconfidence, and common stock investment[J]. The quarterly journal of economics, 2001, 116(1): 261-292.

8. Li J, Yu J. Investor attention, psychological anchors, and stock return predictability[J]. Journal of Financial Economics, 2012, 104(2): 401-419.

9. George T J, Hwang C Y. The 52‐week high and momentum investing[J]. The Journal of Finance, 2004, 59(5): 2145-2176.

Data Availability

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

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Authors who publish this series agree to the following terms:

1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.

2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.

3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open Access Instruction).

Volume Title
Proceedings of the 2022 International Conference on Financial Technology and Business Analysis (ICFTBA 2022), Part 2
ISBN (Print)
978-1-915371-23-2
ISBN (Online)
978-1-915371-24-9
Published Date
27 April 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/6/20220164
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