Research On The Relationship Between Stock Investor Sentiment And Returns

At present,the domestic media environment is constantly changing with the development of the stock market.As far as investor sentiment is concerned,its sources are characterized by diversification and diversification.People are increasingly focusing on how the financial market is influenced by investor sentiment.First,through different ways,stock investors will learn a lot of information,and then predict and analyze the future development of enterprises,their forecasts will affect the number and price characteristics of trading stocks.Secondly,the application of the Internet will be more extensive and in-depth with the scope of hunting.In order to get more information and make better decisions,investors will widely use the Internet when investing and financing.This paper expounds the background,purpose and significance of this study,and analyses the research status of this subject at home and abroad.impact of investor sentiment on stock returns at home and abroad,and puts forward three hypotheses based on traditional financial theory and relevant theoretical analysis of stock returns,and then test the influence of investor sentiment on m arket returns volatility or stock market returns by means of autoregressive conditional heteroscedasticity model and Granger causality test.This paper establishes an emotional composite index from multiple dimensions and calculates the volatility of monthly return rate of A-share market in China through four Volatility Prediction models.Then,according to the constructed composite index of investor sentiment,the sample timber period is divided into two periods: pessimistic period and optimistic period,a nd the change of the relationship between risk and return in different emotional periods is analyzed.The path of investor sentiment-risk-return indirectly studies the impact of investor sentiment on market returns.The empirical results show that ther e is a positive relationship between investor sentiment and stock return.The positive and negative investor sentiment have different effects on stock return.The positive relationship between negative investor sentiment and stock return is stronger.Investor sentiment has a significant impact on the change of stock market returns in China.Investors must pay attention to such factors as investor sentiment in the process of investment.Therefore,in order to avoid the adverse effects of excessive volatility of investor sentiment on the stable operation of stock market and other securities markets,ensure the healthy and stable development of China's market,and improve the pricing efficiency and operation efficiency of the market,the primary task must be to continuously strengthen the education and training of investors,strengthen their skills and investment knowledge reserves,and vigorously develop qualified norms.Institutional investors should advocate rational value investment,improve the regulatory m echanism of the securities market,set reasonable access threshold,strengthen supervision,and create a good market trading atmosphere and investment environment.