Investor Sentiment, Market Competition, and Financial Crisis: Evidence from the Korean Stock Market

Ryu, Dongseok; Ryu, Doojin; Yang, Heejin

doi:10.1080/1540496x.2019.1675152

Cited by 38 publications

(20 citation statements)

References 54 publications

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“…They show that pessimistic sentiment caused by the financial crisis increased the quoted bid-ask spread, lead to the evaporation of equity liquidity, and eventually intensified the net-selling pressure during the period. Similarly, Abdelhédi-Zouch, Abbes, and Boujelbéne [52] and Ryu, Ryu, and Yang [53] highlight the dominating effect of the subprime financial crisis on investor sentiment.…”

Section: The Impact Of Disastersmentioning

confidence: 98%

Impact of Environmental Disaster Movies on Corporate Environmental and Financial Performance

Kim

Park

2021

Sustainability

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Using a unique United States box office data set, we investigate the impact of environmental sentiment on corporate environmental and financial performance of the United States listed firms. The influence of mass media on public and investor sentiments is well documented in the existing literature. However, little is known about the effect of movies, although they may influence the public more than other mass media because people, regardless of age and gender, enjoy watching movies. Using the event study methodology and multivariable regression analysis, we show that the release of anthropogenic environmental disaster movie(s) creates environmental sentiment and influences corporate behaviors. Specifically, firms significantly increase their environmental performance in the subsequent year of strong environmental sentiment after the release of environmental movies. More importantly, the positive effect of corporate environmental performance on financial performance is stronger when the environmental sentiment is stronger.

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Section: The Impact Of Disastersmentioning

confidence: 98%

Impact of Environmental Disaster Movies on Corporate Environmental and Financial Performance

Kim

Park

2021

Sustainability

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“…The high market competition indicated that sentiments and returns are positively related to each other, and this relationship disappears in low market competition. Although the financial crisis changes the situation irrespective of market competition, a positive relationship exists between sentiments and returns ( Ryu et al, 2020 ). Investors can accept psychological pressure more sensitively and intensively than the lay person.…”

Section: Introductionmentioning

confidence: 99%

The Investor Psychology and Stock Market Behavior During the Initial Era of COVID-19: A Study of China, Japan, and the United States

et al. 2021

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A highly transmittable and pathogenic viral infection, COVID-19, has dramatically changed the world with a tragically large number of human lives being lost. The epidemic has created psychological resilience and unbearable psychological pressure among patients and health professionals. The objective of this study is to analyze investor psychology and stock market behavior during COVID-19. The psychological behavior of investors, whether positive or negative, toward the stock market can change the picture of the economy. This research explores Shanghai, Nikkei 225, and Dow Jones stock markets from January 20, 2020, to April 27, 2020, by employing principal component analysis. The results showed that investor psychology was negatively related to three selected stock markets under psychological resilience and pandemic pressure. The negative emotions and pessimism urge investors to cease financial investment in the stock market, and consequently, the stock market returns decreased. In a deadly pandemic, the masses were more concerned about their lives and livelihood and less about wealth and leisure. This research contributes to the literature gap of investors’ psychological behavior during a pandemic outbreak. The study suggests that policy-makers should design a plan to fight against COVID-19. The government should manage the health sector’s budget to overcome future crises.

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“…Hasil penelitian ini terbukti mendukung H1, artinya sentimen investor berpengaruh negatif terhadap stock return JII di awal covid-19. Temuan ini selaras dengan Doowon Ryu et al (2020) dan Anusakumar et al (2017), bahwa saat suatu negara mengalami krisis keuangan maka sentimen investor akan sangat mendominasi atau mempengaruhi stock return dan kondisi pasar modal tidak lagi menjadi pemicu sentimen investor tersebut.…”

Section: Gambar 3 Hasil Uji Heteroskedastisitasunclassified

“…Doowon Ryu et al (2020) menjelaskan bahwa saat suatu negara mengalami krisis keuangan, sentiment investor akan sangat mendominasi atau mempengaruhi stock return dan kondisi pasar modal tidak lagi menjadi pemicu sentiment investor tersebut. Hasil ini didukung Anusakumar et al (2017) bahwa pengaruh sentimen investor akan lebih kuat saat memperhitungkan kondisi makro ekonomi negara tersebut (Anusakumar et al, 2017).…”

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Sentimen Investor terhadap Stock Return JII di Awal COVID-19

et al. 2021

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The research objective is to obtain empirical evidence of the negative influence of investor sentiment on the Jakarta Islamic Index stock return at the beginning of Covid-19. The research contributes to the Islamic finance literature and its supports agency theory, behaviour finance and signaling theory. The research sample used 30 companies listed in the Jakarta Islamic Index for the first semester of 2020. The final sample is 180 observational data. Fourth classical assumption uses, and result show passed all the classical assumption. This study uses control variables such as firm size and firm age. Multiple linear regression as an analysis processed with SPSS version 23. Research findings show a significant negative effect of investor sentiment on Jakarta Islamic Index stock returns at the beginning of Covid-19. This study implicates to management, shareholders and investor. Keywords: Investor Sentiment; Stock Return; COVID-19.

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Investor Sentiment, Market Competition, and Financial Crisis: Evidence from the Korean Stock Market

Cited by 38 publications

References 54 publications

Impact of Environmental Disaster Movies on Corporate Environmental and Financial Performance

Impact of Environmental Disaster Movies on Corporate Environmental and Financial Performance

The Investor Psychology and Stock Market Behavior During the Initial Era of COVID-19: A Study of China, Japan, and the United States

Sentimen Investor terhadap Stock Return JII di Awal COVID-19

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