Advances in Economics, Management and Political Sciences

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Proceedings of the 7th International Conference on Economic Management and Green Development

Series Vol. 42 , 10 November 2023


Open Access | Article

The Influence of Investor Sentiment on Stock Market

Yu Zhou * 1
1 Xi'an Jiaotong-Liverpool University

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 42, 49-56
Published 10 November 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 Yu Zhou. The Influence of Investor Sentiment on Stock Market. AEMPS (2023) Vol. 42: 49-56. DOI: 10.54254/2754-1169/42/20232078.

Abstract

By combining economics, psychology, and neuroscience, behavioral finance aims to analyze how human emotions and biases influence financial decision-making. The research utilizes the Investor Sentiment Index (CICSI) as a tool to measure market sentiment and examines its correlation with variables such as IPO first-day returns, turnover rate, and new account openings. The findings demonstrate that investor sentiment significantly impacts market behavior. This suggests that individual emotions and cognitive biases play a crucial role in shaping market trends. These conclusions provide valuable insights for investors, financial analysts, and policymakers seeking to better understand and predict market behavior. By incorporating behavioral finance insights into traditional financial models, a more comprehensive understanding of financial markets can be achieved, enabling informed decision-making.

Keywords

sentiment, IPO first-day earnings, turnover rate, number of newly opened accounts

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 7th International Conference on Economic Management and Green Development
ISBN (Print)
978-1-83558-105-6
ISBN (Online)
978-1-83558-106-3
Published Date
10 November 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/42/20232078
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