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. 38 , 10 November 2023


Open Access | Article

Research on Investor Sentiment and Its Impact on the Market for Stocks

Ziyu Song * 1
1 Southeast University

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 38, 121-127
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 Ziyu Song. Research on Investor Sentiment and Its Impact on the Market for Stocks. AEMPS (2023) Vol. 38: 121-127. DOI: 10.54254/2754-1169/38/20231896.

Abstract

Both individual and institutional investors are affected by investor sentiment to varying degrees. Based on this, the research theme for this paper is the interaction between investor sentiment and the market for stocks. It begins with defining and quantifying the idea of investor sentiment and then analyzes how investor sentiment and the market for stocks are related, including stock market yield, stock price crash risk, and stock market bubble aspects. It is found that the definition of investor sentiment mostly revolves around the perspectives of "expectation" and "deviation", and the quantitative indicators of investor sentiment are mainly divided into three parts: objective, subjective, and network big data. Investor sentiment is highly predictive of changes in stock market yields in the short term, and high investor sentiment is more likely to lead to stock price crash risk or stock market bubbles. Finally, this paper points out the shortcomings of existing research, and puts forward the future prospects of relevant research conclusions, so as to provide a reference for subsequent scholars to conduct research on investor sentiment and the stock market.

Keywords

investor sentiment, individual investors, stock market, institutional investors, yield

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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)
978-1-83558-097-4
ISBN (Online)
978-1-83558-098-1
Published Date
10 November 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/38/20231896
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