Congratulations to Darren Duxbury and Chen Su for their paper, ‘Investor Sentiment and Stock Returns: Global Evidence’ (co-authored by Wenzhao Wang (ex-NCL PhD))\u00a0which has recently been accepted for publication in Journal of Empirical Finance.<\/p>\n
“In the paper, we provide a global assessment of the impact of investor sentiment on future stock returns. We find that investor sentiment has a more instant impact in emerging markets, but a more enduring impact in developed markets. Individual market heterogeneity explained by cross-market differences in culture and institutions, along with intelligence and education, and individual investor market participation.”<\/p>\n
Abstract: <\/strong>We assess the impact of investor sentiment on future stock returns in 50 global stock markets. Using the consumer confidence index (CCI) as the sentiment proxy, we document a negative relationship between investor sentiment and future stock returns at the global level. While the separation between developed and emerging markets does not disrupt the negative pattern, investor sentiment has a more instant impact in emerging markets, but a more enduring impact in developed markets. Individual stock markets reveal heterogeneity in the sentiment-return relationship. This heterogeneity can be explained by cross-market differences in culture and institutions, along with intelligence and education, to varying degrees influenced by the extent of individual investor market participation.<\/p>\n","protected":false},"excerpt":{"rendered":"