Investor sentiment in the theoretical field of behavioural finance

Abstract

Investor sentiment is a research area in the theoretical field of behavioural finance that analyses the sentiment of investors and the way it influences stock market activity. Recently, there has been an increase in the number of publications in this area, which indicates its incremental relevance. To date, there is no consensus on the theoretical structure of behavioural finance nor on the investor sentiment research area. We have used co-citation, bibliographic coupling and co-occurrence analysis to provide an overview of the structure of investor sentiment. Therefore, this study contributes to defining the theoretical structure of investor sentiment by identifying the foundations of the research area and main journals, references, authors, or keywords, which represent the core of knowledge of this research area. The results obtained suggest that investor sentiment is related to efficient market theory and behavioural finance theories. Furthermore, investor sentiment is a relevant research field, especially since 2014. Advances in computer science or theories based on physics or mathematics can help to better define the influence of investor sentiment on stock markets. This study advances research on investor sentiment within the field of behavioural finance, thus showing its relevance.

Sentimen Investor terhadap Stock Return JII di Awal COVID-19

“…Akibatnya, para investor JII cenderung menarik investasi mereka diawal pengumuman covid-19 untuk menghindari kerugian yang semakin besar dan harga saham JII terus mengalami penurunan hingga nilai terendahnya pada 24 Maret 2020 dengan nilai penutupan 393,86 (Nugroho, 2020). Temuan ini selaras dengan behavior finance theory bahwa faktor emosional mempengaruhi proses pengambilan keputusan keuangan investor di pasar modal dan akhirnya berdampak pada stock return JII (Ángeles López-Cabarcos et al, 2020), (Obeng, 2020), dan (Shefrin, 2005). Terbukti rata-rata stock return JII (SRCG) di awal covid-19 bernilai negatif (lihat tabel 1).…”

“…Hudson dan Muradoglu (2020) menemukan bahwa sentiment investor terhadap stock return juga dipengaruhi oleh faktor psikologi atau emosional pribadi investor. Temuan tersebut didukung oleh behavior finance theory bahwa faktor emosional mempengaruhi proses pengambilan keputusan keuangan investor di pasar modal dan pada akhirnya berdampak pada stock return perusahaan (Ángeles López-Cabarcos et al, 2020), (Obeng, 2020), dan (Shefrin, 2005). Emosional investor JII dalam hal ini dipicu oleh keadaan pasar, dimana pada masa awal pandemic pasar berada dalam kondisi loss karenanya sentimen investor menghasilkan pengaruh negatif pada stock return (Doojin Ryu et al, 2017) dan (Doowon Ryu et al, 2020).…”

Defining and Measuring Microblogging Sentiment Investors on Stock Market: A Literature Review

“…Research that discusses the relationship between social interaction and investment is in sentiment investors [3]. The sentiment is considered a way for investors to form trust [4].…”

“…As in [3] investor sentiment's theoretical structure by identifying the research area's foundations and leading journals, references, authors, or keywords. Due to the increase of publications on investor sentiment, microblog sentiment investor literature lacks cohesion.…”

“…We used bibliometric analysis as a technique that used by [3] and [21] in the investor sentiment research area using VOSviewer that provides three visualizations, referred to as the network visualization, the overlay visualization, and the density visualization.…”