GREEDS and Stock Returns: Evidence from Global Stock Markets

Garima Goel and Saumya Ranjan Dash

Journal of Behavioral Finance, 2023, vol. 24, issue 4, 479-494

Abstract: This paper introduces GREEDS as a new measure of optimistic sentiment in the market. We measure the optimistic component of investor sentiment by constructing the Geographically Revealed Economic Expectations disclosed by Search (GREEDS) index from households’ search behavior on Google for a sample of 38 countries. Our results reveal that the GREEDS index positively correlates with global stock returns. We show the asymmetric effect of GREEDS, which is more prevalent in developed countries than emerging markets. Our findings also highlight the role of global sentiment in financial markets through the sentiment commonality effect.

Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/15427560.2022.2037599 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:hbhfxx:v:24:y:2023:i:4:p:479-494

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/hbhf20

DOI: 10.1080/15427560.2022.2037599

Access Statistics for this article

Journal of Behavioral Finance is currently edited by Brian Bruce

More articles in Journal of Behavioral Finance from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().