Impacts of the mass media effect on investor sentiment

Yang, Wen; Lin, Dongtong; Yi, Zelong

doi:10.1016/j.frl.2017.05.001

Cited by 38 publications

(16 citation statements)

References 10 publications

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“…The results showed that the efficiency of the new indicator in forecasting GDP evolution was superior to that of the economic sentiment indicator measured by the European Commission. Moreover, according to a study of Yang et al (2017), investors' sentiments can be shaped and directed by the financial information they receive through mass media channels. Interestingly enough and in accordance with behavioral economics insights, the authors noticed an asymmetric influence of mass media.…”

Section: Literature Reviewmentioning

confidence: 99%

Empirical Evidence Regarding the Impact of Economic Growth and Inflation on Economic Sentiment and Household Consumption

Bătrâncea

2021

JRFM

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The dynamics of the interconnected global market and consumption behavior has recently changed considerably. Using a sample of 28 nations within the European Union, the study examined the degree to which economic growth and inflation impacted economic sentiment and household consumption during the time frame of December 2019 up to October 2020. The results estimated via panel generalized method of moments and panel least squares (with cross-section weights, time fixed effects) showed that economic sentiment and household consumption were significantly shaped by the proxies of economic growth and inflation. Moreover, in the case of economic sentiment, the negative impact of inflation was much stronger than the positive impact of economic growth. The reverse applied in the case of household consumption. The study draws policy implications regarding the strategies that public authorities, companies, and individual consumers could apply for stimulating national economies amid challenging times.

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Section: Literature Reviewmentioning

confidence: 99%

Empirical Evidence Regarding the Impact of Economic Growth and Inflation on Economic Sentiment and Household Consumption

Bătrâncea

2021

JRFM

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“…In a growing market, such as the IT sevices market, investors rely more on optimistic reports and neglect those with a negative and warning signals. In a declining market, there a high probability, for investors to be more sceptical and analyse more pessimistic reports [12]. At the beginning of the COVID-19 pandemic in just 4 days in February 2020, the S&P 500 lost over USD 500 trilion [13].…”

Section: Literature Reviewmentioning

confidence: 99%

The Influence of Covid-19 Crisis on Social Media Companies Stock Prices

Ivanković¹,

Filipović²

2021

Proceedings of the International Scientific Conference - Sinteza 2021

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Technology and the internet development has led to changes in communication, therefore companies are increasingly recognize the importance of social media as a communication strategy. The aim of this paper is to determine whether social media have achieved expansion and recorded an increase in stock prices during the COVID-19 crisis. The research covered five social media companies (Facebook, Twitter, Snapchat, Pinterest and Weibo), which have listed shares on the stock markets. The results of the research showed that in the situation of a global pandemic considering digitalization, there is an increase in the number of users of social media, and that importance of investing in online advertising and e-commerce through social media has been recognized. Despite this, there is not the same positive impact of the COVID-19 crisis on all five observed social media companies and their stocks, and it is possible that increases and decreases in stock prices will not continue in the following periods in the same trend.

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“…Several studies thereafter have tested attention based buying using different attention event proxies like stocks hitting upper price limits (Seasholes and Wu, 2007), analysts’ forecasts given in round figures (Athanasakou and Simpson, 2016), price crossing 52 week high and low limits (Huddart et al , 2009) amongst others. A complimenting stream of literature also discusses investor attention being caught by media (Yang et al , 2017; Wu and Lin, 2017) and indirect modes such as advertising (Lou, 2014).…”

Section: Literature Reviewmentioning

confidence: 99%

The unspoken facets of buying by individual investors in Indian stock market

Bondia

Biswal

Panda

2019

RBF

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PurposeThe purpose of this paper is to develop an in-depth contextualized understanding of individual investors’ buying decision in Indian stock market. Specifically, it provides answers to: how do individual investors make buying decision in stock market; and how and when do biases set in during such decisions. The paper also brings forward some aspects of individual’s journey as an investor.Design/methodology/approachGiven the exploratory nature of this study, the paper takes a step away from typically used variance approach and instead uses a process approach. The authors do in-depth one-on-one interview, where each respondent shares his/her lived experiences as an investor retrospectively. To understand buying decision, each respondent is asked to elaborate three significant buying transactions carried out by him/ her in stock market.FindingsSocio-cultural factors are found to have significant influence in inducing respondents to enter market. “Safe” vs “Risky” mental account emerges as the prominent stock categorization done by Indian investors. Three building blocks, namely, Identification, Rationalization and Further Validation emerge as the building blocks that culminate into buying decision of individual investors. The biases are seen to play a dual role in such decisions; as Attention Boosters and Rationales.Originality/valueThis study, to the best of authors’ knowledge, is first of its kind which amalgamates behavioral biases with phenomenon such as attention and Rationalization, to understand “how” behavioral biases set in during buying decision of individual investors.

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Impacts of the mass media effect on investor sentiment

Cited by 38 publications

References 10 publications

Empirical Evidence Regarding the Impact of Economic Growth and Inflation on Economic Sentiment and Household Consumption

Empirical Evidence Regarding the Impact of Economic Growth and Inflation on Economic Sentiment and Household Consumption

The Influence of Covid-19 Crisis on Social Media Companies Stock Prices

The unspoken facets of buying by individual investors in Indian stock market

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