A study on the Influence of Investors’ Mood Fluctuation on Returns in Securities Market

Yuxuan Tian ()
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Yuxuan Tian: The Xiuwen International Academy at Jinan

A chapter in Proceedings of the 2024 2nd International Conference on Economic Management, Financial Innovation and Public Service (EMFIPS 2024), 2025, pp 673-688 from Springer

Abstract: Abstract China’s securities market is in the process of rapid expansion, but the relevant system is not mature enough. Therefore, based on the realistic background, this paper studies the relationship between investor sentiment and securities returns, which is helpful to analyze the different relationships between investor sentiment and securities indexes of different scales. it also helps to dig deep into the mechanism between the two to reasonably estimate the future development trend of the securities market, guide investors to invest more rationally, and promote the healthy development of securities trading. First of all, a compound emotion index is constructed from several single indicators, and a comprehensive index of investor sentiment suitable for the securities market is constructed, and then, it is proved that investor sentiment and securities return are cause and effect each other, and there is a two-way positive correlation. Finally, we analyze how investor sentiment affects market volatility, and the empirical results show that investor sentiment also has a magnifying effect on market volatility.

Keywords: stock market; mood fluctuation; return on investment; influence relationship (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-706-9_61

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DOI: 10.2991/978-94-6463-706-9_61

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