Emotions in the Stock Market

Griffith, John M.; Najand, Mohammad; Shen, Jiancheng

doi:10.1080/15427560.2019.1588275

Cited by 85 publications

(50 citation statements)

References 60 publications

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“…As such, we expect that financial security may cause retail investors to be less fearful and thus more active in trading activities. This prediction is in line with the age-old market adage of “buy on fear, sell on greed”, which underscores the impact of this dimension on investment decisions ( Griffith et al, 2019 ).…”

Section: Research Modelsupporting

confidence: 80%

Has financial attitude impacted the trading activity of retail investors during the COVID-19 pandemic?

Talwar

Talwar²,

Kaur

et al. 2021

Journal of Retailing and Consumer Services

198

140

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Financial attitude influences the financial behavior of retail investors. Although the extant research has acknowledged and examined this relationship, the measures of financial attitude and behavior still vary widely and are generally posed as a series of questions rather than statements. In addition to this, there is insufficient knowledge regarding retail investors' behavior in the face of a health crisis, such as the current COVID-19 pandemic. This study addresses these gaps in the prior literature by examining the relative influence of six dimensions of financial attitude, namely, financial anxiety, optimism, financial security, deliberative thinking, interest in financial issues, and needs for precautionary savings, on the trading activity of retail investors during the pandemic. Data were collected from 404 respondents and analyzed using the artificial neural network (ANN) method. The results revealed that all six dimensions had a positive influence on trading activity, with interest in financial issues exerting the strongest influence, followed by deliberative thinking. The study thus contributes important inferences for researchers and managers.

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Section: Research Modelsupporting

confidence: 80%

Has financial attitude impacted the trading activity of retail investors during the COVID-19 pandemic?

Talwar

Talwar²,

Kaur

et al. 2021

Journal of Retailing and Consumer Services

198

140

View full text Add to dashboard Cite

show abstract

“…The first sentiment category covers more sophisticated sources, such as The New York Times or The Wall Street Journal , while the latter sources news from less formal sites, such as Yahoo! Finance or Blogger (for more information on TRMI see Drobetz, Momtaz, & Schröder, 2019; Griffith, Najand, & Shen, 2019; Nooijen & Broda, 2016). For our analysis, we follow Lin et al (2018) and investigate the impact of high sentiment periods on price discovery.…”

Section: Determinants Of Price Discoverymentioning

confidence: 99%

The determinants of price discovery on bitcoin markets

Entrop

Frijns

Seruset

2020

Journal of Futures Markets

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This paper investigates whether market quality, uncertainty, investor sentiment and attention, and macroeconomic news affect bitcoin price discovery in spot and futures markets. Over the period December 2017–March 2019, we find significant time variation in the contribution to price discovery of the two markets. Increases in price discovery are mainly driven by relative trading costs and volume, and uncertainty to a lesser extent. Additionally, medium‐sized trades contain most information in terms of price discovery. Finally, higher news‐based bitcoin sentiment increases the informational role of the futures market, while attention and macroeconomic news have no impact on price discovery.

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“…Internet posting is mainly helpful for stock exchanges, brokerage firms, banks and investment as sources of information about their financial products (Campbell and Cecez-Kecmanovic, 2011). Griffith et al (2019) studied that the relationship between media and the market volatility and return, it seems, IS is to predict the level of the market return. High-significance news induces a higher market movement.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of investor sentiment on decision-making in Indian stock market: an empirical analysis

Haritha

Uchil

2019

JAMR

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Purpose The purpose of this paper is to analyze the relationship between the factors influencing investors sentiment and investment decision-making (DM) of the individual investors. This paper proposes a unique conceptual framework that incorporates the herding, market and awareness factors that are leading to investor sentiment (IS) and decision-making process of the individual investors. Design/methodology/approach This study has conducted a questionnaire-based survey to collect data from 875 individual investors through the convenience sampling method. Structural equation modeling was used to evaluate the relationship between factors, namely, market effect, herd behavior, media, social interaction and advocate recommendation that influences IS and DM. Findings The present study found that market effect and herding are the most significantly influencing factors of investors sentiment. Among the sources of awareness, the internet has the lowest influence when compared to media, social interaction and advocate recommendation. Practical implications This study will help individual investors to avoid the problems faced while making an investment decision. The study could help investors to select a suitable investment aid and avoid repeating expensive errors, which arise due to investors’ sentiment. It is recommended to increase the awareness regarding investors’ sentiment among individuals, so as to increase their understanding about the financial settings and to make them confident while investing. The present study also sheds light upon the behavior of Indian individual investors so that policymakers can take appropriate measures to provide the proper guidance. Policymakers can conduct awareness campaigns to increase investors’ knowledge on the market condition and to enhance proper investment DM among them. Originality/value To best of the authors’ knowledge, previous studies have focused on limited factors at a time. The present study has investigated how factors influencing investors sentiment, namely, market factors (MF), herding as well as awareness would influence investment DM among individual investors in India. The influence of these factors has never been studied simultaneously in the context of Indian individual investors’ DM.

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Emotions in the Stock Market

Cited by 85 publications

References 60 publications

Has financial attitude impacted the trading activity of retail investors during the COVID-19 pandemic?

Has financial attitude impacted the trading activity of retail investors during the COVID-19 pandemic?

The determinants of price discovery on bitcoin markets

Impact of investor sentiment on decision-making in Indian stock market: an empirical analysis

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