The Impact of the Coronavirus Disease 2019 Pandemic on Investor Sentiment—Evidence From A-Share Listed Companies in China

Song, Yuegang; Hao, Xiazhen; Lu, Zhou

doi:10.3389/fpsyg.2021.743306

Cited by 5 publications

(5 citation statements)

References 33 publications

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“…US investors' technical analysis valuation investment decision-making during the COVID-19 pandemic era was mostly based on unintentional errors in their worldview and calculated guesses related to prior knowledge. The findings of this study contradicted the studies done in China by Song et al (2021) and Jan et al (2022) that showed that the pandemic outbreak hurt investors' confidence in investment decision-making. The US investors were better positioned based on their experience and market information availability.…”

Section: Resultscontrasting

confidence: 99%

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The mediating effect of the COVID-19 pandemic on heuristic techniques and cognitive biases on investment decision-making

Peprah,

Kwakwah-Oppong,

Osei-Kuffour

et al. 2024

IJAEFA

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US investors’ behavioral finance and investment decision-making approach became a concern during the COVID-19 pandemic era as the capital market crashed. The study used mediation analysis to explain how or why the COVID-19 pandemic intervened in the causal association of behavioral finance concepts of heuristic techniques and cognitive biases on their investment decision-making. This causal research design study was based on 500 snowball-sampled US investors who answered self-constructed, validated, and reliability-tested Likert-scale quantitative variables measured through a first-party data collection approach. The results showed that the COVID-19 pandemic was a specific moderate to partial significant mediator on the low positive significant relationships between heuristic techniques and investment decision-making, and the COVID-19 pandemic was a specific moderate to full significant mediator on the low positive not significant relationships between cognitive biases and investment decision-making among US investors. From the point of view of behavioral finance, the COVID-19 pandemic situation clearly and significantly demonstrated how US investors used 75.6% heuristics techniques (calculated guesses based on prior knowledge) and 87.5% cognitive biases (unintentional errors in their worldview) to cause the crash of the capital market. These findings confirm the rational expectations theory.

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Section: Resultscontrasting

confidence: 99%

“…A study by Song, Hao, and Lu (2021) explored the influence of the COVID-19 pandemic on investor emotion in China's financial market between October 2019 and June 2020. The pandemic outbreak hurt investor sentiment.…”

Section: The Covid-19 Pandemic Does Not Mediate the Relationship Betw...mentioning

confidence: 99%

The mediating effect of the COVID-19 pandemic on heuristic techniques and cognitive biases on investment decision-making

Peprah,

Kwakwah-Oppong,

Osei-Kuffour

et al. 2024

IJAEFA

View full text Add to dashboard Cite

show abstract

“…In addition to financial markets, Baker & Wurgler (2007) were the first to explore investor sentiment from a macroeconomic perspective, emphasizing its exogenous origins and empirical effects [21]. For example, the impact of energy prices on investor sentiment in the United States [22] (Apergis et al, 2017) and the importance of investor sentiment in key events such as the COVID-19 pandemic, revealing its impact on investor behavior and market dynamics [23] (Song et al, 2021). In addition, it was found that investor sentiment affects trade to varying degrees under different market conditions, influencing returns and volatility [24] (Liu & An, 2018).…”

Section: Research On the Impact Of Investor Sentimentmentioning

confidence: 99%

An Analysis of the Influence of ESG Rating Divergence on Investor Sentiment

Liao,

2024

IJGEM

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The global financial markets have experienced a significant development with the emergence of the notions of "sustainable development" and "green investing". This development involves the integration of Environmental, Social, and Governance (ESG) information into investment decisions. A significant advancement in the worldwide financial market is the integration of ESG (Environmental, Social, and Governance) data into investing choices. ESG ratings have emerged as a significant benchmark for investors in this scenario. However, there is now a considerable disparity in the rating outcomes provided by various rating agencies for particular companies. This disparity distorts the ratings and thus triggers exaggerated reactions from investors. This study investigates the influence of differences in ESG ratings on investor sentiment and its underlying mechanism using a sample of businesses listed on the A-share market in Shanghai and Shenzhen between 2015 and 2022. Research has shown that when there is a significant difference in ESG ratings, it has a detrimental effect on investor sentiment. This means that when there is a large divergence in ESG ratings, it negatively affects investor sentiment, leading to a decrease in their evaluation and confidence in the company. Empirical investigations demonstrate that the focus and consideration given by analysts and research reports play a crucial role in how differences in ESG ratings impact investor sentiment. Additional investigation reveals that the adoption of GRI standards and the verification of ESG reports by third-party entities can somewhat reduce the influence of divergence on the fluctuation of investor mood, as well as enhance investor acknowledgment of revealed information. The paper examines the influence of disagreement in ESG ratings on investor mood, contributes to existing research on ESG ratings dispute, and presents empirical evidence to support the development of China's ESG ratings system and the establishment of a "rational" investment market.

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“…This expectation is due to investors' anticipation of the increasing demand for pharmaceutical products. The rising trend in pharmaceutical stock price is witnessed during COVID-19 pandemic (Song et al, 2021). However, COVID-19 related news and economic related announcements do not cause irrational investment in the pharmaceutical or healthcare stocks (Sun et al, 2021).…”

Section: Literature Reviewmentioning

confidence: 99%

Is the Stock Market Immune to COVID-19? Evidence from Malaysian Stock Market

Ming¹,

Soon²,

Jais³

2022

IJARAFMS

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This study aims to examine the immunity of the Malaysian sectoral indexes to the COVID-19 related news in 2020 and 2021. The findings indicated that the market volatility of the Malaysian stock market has reduced from 2020 to 2021. The results also showed that market volatility and Brent oil price movements had a significant impact on the majority of the sectors. The daily COVID-19 confirmed cases also had a greater impact than the daily COVID-19 death cases towards the movements of Malaysian sectorial indexes. Investors are recommended to monitor the information related to the COVID-19 pandemic. Any dramatic changes in COVID-19 confirmed cases and death cases might cause another round of volatility in the Malaysian stock market. Risk-averse investors are recommended to pay attention to the consumer product and construction sectors. Lastly, REIT, technology, and healthcare sectors shall be another sector to be targeted after the reopening of economic activities.

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The Impact of the Coronavirus Disease 2019 Pandemic on Investor Sentiment—Evidence From A-Share Listed Companies in China

Cited by 5 publications

References 33 publications

The mediating effect of the COVID-19 pandemic on heuristic techniques and cognitive biases on investment decision-making

The mediating effect of the COVID-19 pandemic on heuristic techniques and cognitive biases on investment decision-making

An Analysis of the Influence of ESG Rating Divergence on Investor Sentiment

Is the Stock Market Immune to COVID-19? Evidence from Malaysian Stock Market

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