How investor attention affects stock returns? Some international evidence

Akarsu, Sergen; Süer, Ömür

doi:10.1016/j.bir.2021.09.001

Cited by 17 publications

(9 citation statements)

References 48 publications

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“…The findings of this study add to the limited literature on the relationship between active investor attention and equity returns in Africa. We also contribute the existing literature on the important relationship between Equity and inflation especially in Ghana by providing evidence consistence with earlier studies such as Adusei (2014); Akarsu & Süer (2022); Iyke & Ho (2021).…”

Section: Suggestion For Further Studysupporting

confidence: 74%

Investor Attention and Equity as a Hedge against Inflation in Ghana

Sanogo¹,

Asiedu²

2022

JFRM

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The flow of relevant market information for investment decision making has increased due to increase in access. Investors are, however, time-constrained in effort and cognitive resources to process market information. The basic capital asset pricing model based on the efficient market hypothesis assumes that all market information on securities is incorporated into prices instantaneously. However, the situation is different in real-life situations because, in some cases, some investors possess little information about the market. This study examined the effect of active investor attention (Google Search Volume) and inflation on Ghana's stock market returns for the period September 2005-December 2019 (monthly data). Through co-integration and the VECM technique, we established a long-run relationship among the variables. The study also found a positive and significant relationship between active investor attention (Google Search Volume), inflation, and equity returns in Ghana. The results from the VECM are further confirmed by ARCH and GARCH models as a robustness check. The findings demonstrate that in Ghana, equity serves as a hedge against inflation.

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Section: Suggestion For Further Studysupporting

confidence: 74%

Investor Attention and Equity as a Hedge against Inflation in Ghana

Sanogo¹,

Asiedu²

2022

JFRM

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“…Instead of just focusing on a few specific markets, some other researchers have expanded their research scope to an international scale, with their aim being to establish the factors that affect the relationship between investor attention and stock returns. Akarsu and Süer (2021) researched 31 markets and found that investor attention is more significant in individualist countries, countries with a psychological avoidance of instability, and developed countries. Tantaopas et al (2016) examined the impact of investor attention on returns in 10 Asia-Pacific countries.…”

Section: Literature Reviewmentioning

confidence: 99%

“…While C. P. Nguyen et al (2019) suggested that the higher the search frequency, the lower the stock return, C. Nguyen et al (2020) obtained the opposite result. The multinational studies by Akarsu and Süer (2021) and Chen (2017) also refer to frontier markets but only analyse at the market level, not at the stock level. On the other hand, rather than delve into the differences between markets, these studies aim to understand the influence of non-economic factors such as emotions and culture on the relationship between investors' attention and the stock market.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Several studies on the relationship between investor attention expressed through GSVI and the stock market were conducted for single markets (Ekinci & Bulut, 2021;C. Nguyen et al, 2020;Swamy & Munusamy, 2019) or expanded to an international level (Akarsu & Süer, 2021;Chen, 2017;Tantaopas et al, 2016). However, there are still three research gaps that need filling.…”

Section: Introductionmentioning

confidence: 99%

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Google Search Intensity and Stock Returns in Frontier Markets: Evidence from the Vietnamese Market

Duc,

Hoai,

Nguyen

et al. 2024

EBR

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The study investigates investor attention's impact on stock trading by modeling the relationship between Google search intensity and stock return with stocks listed in frontier markets in Vietnam from October 2016 to October 2021. The study has three findings. First, the study confirms the price pressure hypothesis and attention theory that Google search intensity positively affects stock returns. Second, this study indicates that the impact of Google search intensity on stock price is short. The positive effect is within the week of searching and reverses the following week, although the reverse force is not strong. Third, the relationship is more robust post than pre-COVID-19, suggesting that after a shock, more new individual investors enter the market, the impact of GSVI on stock return is stronger.

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“…Interestingly, Chen (2017) found the same dynamic using Google searches instead of media coverage: a raise in the number of searches was followed by a significant decrease in stock returns. Suer et al . (2021) state that, although not internationally consistent, investor attention influences abnormal stock returns and is more significant in developed and high uncertainty avoidance countries.…”

Section: Brief Literature Reviewmentioning

confidence: 99%

Investor attention during soccer World Cups

Lobato,

Maura,

Rodriguez

et al. 2023

AJB

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PurposeThis study aims to examine investor attention by exploring the trading behavior of investors in US-based exchange traded funds (ETFs) of countries active in the Federation Internationale de Football Association (FIFA) World Cups.Design/methodology/approachThe present study employs event study methodology to measure abnormal returns and excess trading volume of country-specific ETFs during six FIFA World Cups. The sample of ETFs includes 19 participating countries.FindingsConsistent with investor behavior that might be explained by attention effect, the study finds that country-specific ETFs from participating countries do indeed behave differently during FIFA World Cups events. The authors find significant evidence of abnormal trading volume and, albeit weaker, abnormal returns during cups.Originality/valueThis study contributes to the literature on investor behavior, linking investor attention with salient sports events.

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How investor attention affects stock returns? Some international evidence

Cited by 17 publications

References 48 publications

Investor Attention and Equity as a Hedge against Inflation in Ghana

Investor Attention and Equity as a Hedge against Inflation in Ghana

Google Search Intensity and Stock Returns in Frontier Markets: Evidence from the Vietnamese Market

Investor attention during soccer World Cups

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