Investor Sentiment Index during the COVID-19 crisis: Evidence from G20 Stock Markets

2021 ◽  
Author(s):  
So Young Kim ◽  
Hoang Phan ◽  
Hang Pham
Keyword(s):  
Stock Markets ◽  
Investor Sentiment

scholarly journals Financial firm bankruptcies, international stock markets, and investor sentiment

2018 ◽  
Vol 24 (1) ◽  
pp. 461-473 ◽  
Author(s):  
Panayiotis Papakyriakou ◽  
Athanasios Sakkas ◽  
Zenon Taoushianis
Keyword(s):  
Stock Markets ◽  
Investor Sentiment ◽  
International Stock Markets ◽  
Financial Firm

Googling Investor Sentiment around the World

2019 ◽  
Vol 55 (2) ◽  
pp. 549-580 ◽  
Author(s):  
Zhenyu Gao ◽  
Haohan Ren ◽  
Bohui Zhang
Keyword(s):  
Stock Prices ◽  
Stock Markets ◽  
Investor Sentiment ◽  
Search Behavior ◽  
Market Returns ◽  
Country Level ◽  
The World ◽  
Google Search

We study how investor sentiment affects stock prices around the world. Relying on households’ Google search behavior, we construct a weekly measure of sentiment for 38 countries during 2004–2014. We validate the sentiment index in tests using sports outcomes and show that the sentiment measure is a contrarian predictor of country-level market returns. Furthermore, we document an important role of global sentiment in stock markets.

The dynamic dependence of fossil energy, investor sentiment and renewable energy stock markets

2019 ◽  
Vol 84 ◽  
pp. 104564 ◽  
Author(s):  
Yingjie Song ◽  
Qiang Ji ◽  
Ya-Juan Du ◽  
Jiang-Bo Geng
Keyword(s):  
Renewable Energy ◽  
Stock Markets ◽  
Investor Sentiment ◽  
Fossil Energy

scholarly journals Investor Sentiment and Herding Behavior in the Korean Stock Market

2020 ◽  
Vol 8 (2) ◽  
pp. 34
Author(s):  
Ki-Hong Choi ◽  
Seong-Min Yoon
Keyword(s):  
Stock Market ◽  
Quantile Regression ◽  
Stock Markets ◽  
Trading Volume ◽  
Investor Sentiment ◽  
Herding Behavior ◽  
Absolute Deviation ◽  
Cross Sectional ◽  
Korean Stock Market ◽  
Quantile Regression Method

This paper investigates herding behavior and the connection between herding behavior and investor sentiment. We apply a Cross-Sectional Absolute Deviation (CSAD) approach and the quantile regression method to capture herding behavior in the KOSPI and KOSDAQ stock markets. The analysis results are outlined as follows. First, we find that herding behavior is exhibited during down-market periods in the KOSPI and KOSDAQ stock markets. However, we show that adverse herding behavior occurs in low-trading volume and low-volatility periods. Second, according to the results of the quantile regression, herding behavior is found in the low and high quantiles of the KOSPI and KOSDAQ stock markets. However, adverse herding behavior is also found, which means that investors herd in extreme market conditions. Third, the relationship between investor sentiment and herding behavior is analyzed through regression and quantile regression, and investor sentiment is confirmed to be one of the important factors that can cause herding behavior in the Korean stock market.

scholarly journals COVID-19 Pandemic and Investor Herding in International Stock Markets

Risks ◽  
2021 ◽  
Vol 9 (9) ◽  
pp. 168
Author(s):  
Elie Bouri ◽  
Riza Demirer ◽  
Rangan Gupta ◽  
Jacobus Nel
Keyword(s):  
Infectious Diseases ◽  
Financial Markets ◽  
Stock Markets ◽  
Investor Sentiment ◽  
Market Uncertainty ◽  
Herding Behavior ◽  
Market Participants ◽  
Hedging Strategies ◽  
Global Stock Markets ◽  
Global Stock

The aim of this study is to understand the effect of the recent novel coronavirus pandemic on investor herding behavior in global stock markets. Utilizing a daily newspaper-based index of financial uncertainty associated with infectious diseases, we examine the association between pandemic-induced market uncertainty and herding behavior in a set of 49 global stock markets. More specifically, we study the pattern of cross-sectional market behavior and examine whether the pandemic-induced uncertainty drives directional similarity across the global stock markets that cannot be explained by the standard asset pricing models. Utilizing a time-varying variation of the static herding model, we first identify periods during which herding is detected. We then employ probit models to examine the possible association between pandemic-induced uncertainty and the formation of herding. Our findings show a strong association between herd formation in stock markets and COVID-19 induced market uncertainty. The herding effect of COVID-19 induced market uncertainty is particularly strong for emerging stock markets as well as European PIIGS stock markets that include some of the hardest hit economies in Europe by the pandemic. The findings establish a direct link between the recent pandemic and herd formation among market participants in global financial markets. Considering the evidence that herding behavior can drive security prices away from equilibrium values supported by fundamentals and further contribute to price fluctuations in financial markets, our findings have significant implications for policy makers and investors in their efforts to monitor investor sentiment and mitigate mis-valuations that might occur as a result. Furthermore, the evidence on the behavioral pattern of stock investors in relation to infectious diseases uncertainty can be useful in studying price discovery in stock markets and might help market participants in forming hedging strategies to mitigate downside risk in their investment portfolios.

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