Research Article
An Empirical Study of the Impact of Investor Sentiment on Stock Returns from a Behavioural Finance Perspective
@INPROCEEDINGS{10.4108/eai.19-5-2023.2334284, author={Siyuan Chen}, title={An Empirical Study of the Impact of Investor Sentiment on Stock Returns from a Behavioural Finance Perspective}, proceedings={Proceedings of the 2nd International Conference on Bigdata Blockchain and Economy Management, ICBBEM 2023, May 19--21, 2023, Hangzhou, China}, publisher={EAI}, proceedings_a={ICBBEM}, year={2023}, month={7}, keywords={investor sentiment investor confidence stock returns behavioral finance}, doi={10.4108/eai.19-5-2023.2334284} }- Siyuan Chen
Year: 2023
An Empirical Study of the Impact of Investor Sentiment on Stock Returns from a Behavioural Finance Perspective
ICBBEM
EAI
DOI: 10.4108/eai.19-5-2023.2334284
Abstract
Due to the large number of individual investors and the large volume of transactions in the Chinese stock market, and the theory of limited rationality from the perspective of behavioral finance, investors inevitably carry personal emotions in their investment activities, so studying investor sentiment is beneficial to help Chinese investors better understand the Chinese stock market and make more appropriate investment decisions. The research topic is the effect of investor sentiment on stock returns, combines the theoretical foundation of behavioural finance, selects the constituent stocks in the SSE 50 index as a sample, and conducts correlation matrix analysis, regression and hy-pothesis testing by constructing a fixed effects model, and finally concludes that (1) The Investor sentiment has a significant positive impact on stock returns. (2) The In-vestor confidence has a significant negative impact on stock returns. It is therefore hoped that investors will avoid overconfidence when they have a positive bullish sen-timent towards the stock market and ultimately make investment decisions that are suitable and more correct for them.