Research on the Impact of Investor Sentiment on Stock Returns Based on Uncertainty

Beibei Luo

doi:10.54097/3g6pey04

Authors

Beibei Luo

DOI:

https://doi.org/10.54097/3g6pey04

Keywords:

Investor Sentiment; Uncertainty; Mispricing.

Abstract

This paper examines the relationship between firm-level investor sentiment and stock returns, and attempts to illustrate the impact of financial market uncertainty on this relationship. The results show that investor sentiment significantly affects the short-term returns of stocks, and this influence weakens when uncertainty increases. And in companies with less uncertainty, the effect becomes even stronger.

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