Effects of investor sentiment and country governance on unexpected conditional volatility during the COVID-19 pandemic: Evidence from global stock markets

Hsu, Yu‐Lin; Tang, Liyan

doi:10.1016/j.irfa.2022.102186

Cited by 35 publications

(20 citation statements)

References 38 publications

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“…Both shocks in daily new cases have an adverse impact at first but revert to zero after 20 steps, rather than staying in a long-period pessimistic situation.Having said that, it appears that investors failed to learn from previous experiences, as the severe impact to the social media business had not deterred their investment. This supports Hsu and Tang's conclusion that the size of the effect of investor sentiment on unanticipated volatility declined later in the pandemic[33]. Twitter's stock performance is almost a microcosm of the world's stock market.…”

supporting

confidence: 78%

“…Although some articles investigate stock market performance during the pandemic, their conclusions and topics are more related to big industries such as communication services, technology, healthcare, energy, and so on. However, one similarity between us in analyzing stock market volatility is that many authors adopted methodology or related transformations such as VAR model, GARCH model, TGARCH model [35], EGARCH model [33], or others in their research to determine stock market movements.…”

Section: Discussionmentioning

confidence: 99%

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The Impact of COVID-19 Pandemic on the Social Media Industry: A Long-term Perspective

Chen¹

2023

BCPEP

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With the emergence of the coronavirus pandemic around the world, social media has rapidly become an effective tool for information generation and broadcast, entertainment, marketing, and consumption. Depending on some studies, social distancing rules, lockdown measures, business closures, self-quarantines, and the fear of infection during the COVID-19 pandemic limited people's physical social interaction; as a result, individual and organizational activities on social media platforms grow explosively. This degree of social media popularity has a double-edged impact on the expansion and financial performance of social media companies. In this article, a well-known American corporation, Twitter, lnc. was chosen and daily stock data from January 2020 to April 2022 is extracted, as well as corresponding daily new confirmed cases in the US and around the world. The VAR model was applied in the study to evaluate the link between variables, and the ARMA-GARCH model was used to determine and analyze both earning ability and stock volatility throughout the pandemic. Interestingly, Twitter's financial performance is merely a microcosm of the entire stock market, in which investors can quickly rebound from pessimism and reinvest in the market. The study forecasts the possible future of the social media industry and provides managerial and investment recommendations to its stakeholders.

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supporting

confidence: 78%

Section: Discussionmentioning

confidence: 99%

The Impact of COVID-19 Pandemic on the Social Media Industry: A Long-term Perspective

Chen¹

2023

BCPEP

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“…Pasar modal merupakan sektor yang paling cepat dan responsif langsung di antara sistem ekonomi dan keuangan (Hsu dan Tang, 2022). Disrupsi di pasar modal telah terjadi penurunan secara historis sejak keberadaan wabah ini.…”

Section: Pendahuluanunclassified

Analisis Faktor – Faktor Yang Mempengaruhi Keputusan Investasi Selama Covid-19 Di Bursa Efek Indonesia

Fitriaty

Saputra²,

Elliyana³

2022

Mankeu

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Penelitian ini bertujuan menganalisis faktor-faktor yang mempengaruhi keputusan investasi selama covid-19 di Bursa Efek Indonesia yaitu return saham, harga emas, tingkat suku bunga dan IHSG secara simultan dan secara parsial serta menguji perbedaan kinerja saham sebelum dan disaat pandemi covid-19 dengan membandingkan comulative abnormal return (CAR) sebelum dan disaat pandemi covid-19. Sampel dalam penelitian ini adalah perusahan subsektor makanan dan minumam. Hasil penelitian ini menemukan bahwa secara simultan variabel return saham, harga emas, tingkat suku bunga dan IHSG memiliki pengaruh signifikan terhadap keputusan investasi, secara parsial return dan IHSG memiliki pengaruh negatif dan signifikan terhadap keputusan investasi, Harga emas dan tingkat suku bunga memiliki pengaruh negatif dan signifikan terhadap keputusan investasi. Berdasarkan uji paired samples Test terdapat perbedaan comulative abnormal return sebelum dan disaat pandemi covid-19.

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“…The high amount of uncertainty causes investors to act irrationally, resulting in mispricing (Kim et al, 2021). Hence, as investor sentiment moves stock prices away from their fundamental values, their effect on asset pricing has been the focus of attention for all stock market participants, whether policymakers, market makers, speculators, or arbitrageurs (Guo et al, 2021;Hsu & Tang, 2022).…”

Section: Introductionmentioning

confidence: 99%

The mediating role of stock market liquidity on the relationship between Investor sentiment and Stock market volatility: An Applied study on Listed Companies in Egyptian stock Exchange

El-ata

Kerdawy

Shabana

2023

المجلة العلمیة للدراسات والبحوث المالیة والتجاریة

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Purpose: We examined whether investor sentiment affects the volatility of the Egyptian exchange. While examining this relationship, we also test whether stock market liquidity is the channel than can affect the relationship between investor sentiment and Egyptian exchange volatility.Methodology: This study adopted the positivism philosophy, quantative method, and deductive approach. In addition, we collect secondary data from the financial statements of the listed companies on the EGX 100 comprise the study's population. After excluding statements from banks and financial institutions and relying solely on the consolidated financial statement, the sample consists of 305 observations from 76 firms. The data was analyzed to verify if the time series is a stationary time series or not by using Dick-Fuller test and GARCH model. Then, we use the correlation matrix coefficient and descriptive statistics to describe the data. Finally, the research model was validated with structural equation modeling (SEM).Findings: Results of the study found a significant negative relationship between investor sentiment and stock market volatility. Besides, stock market liquidity partially mediates the relationship between investor sentiment and stock market volatility. Recommendations and Further Direction:Based on the results, this study presents recommendations that could help to improve the performance of the Egyptian exchange. Also, it offers some directions for future research.

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Effects of investor sentiment and country governance on unexpected conditional volatility during the COVID-19 pandemic: Evidence from global stock markets

Cited by 35 publications

References 38 publications

The Impact of COVID-19 Pandemic on the Social Media Industry: A Long-term Perspective

The Impact of COVID-19 Pandemic on the Social Media Industry: A Long-term Perspective

Analisis Faktor – Faktor Yang Mempengaruhi Keputusan Investasi Selama Covid-19 Di Bursa Efek Indonesia

The mediating role of stock market liquidity on the relationship between Investor sentiment and Stock market volatility: An Applied study on Listed Companies in Egyptian stock Exchange

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