Research On The Influence Of Investor Sentiment On GEM Market Based On Text Mining

Investor sentiment is one of the most important factors in the market,and most stocks,bonds and commodities in the market are related to it.Due to the development of network media,investors can express their opinions and views on the Internet platform,so that investors’ views on the stock market spread rapidly on the Internet,which makes the volatility of investor sentiment increasingly intensified.Most of the listed companies on the GEM market are small and medium-sized high-tech emerging companies,whose high growth and high risk make their price-earnings ratio high,and the future development trend is also uncertain.The ferment of investor sentiment will have a more difficult to control impact on the GEM market.Therefore,in-depth research on the influence of investor sentiment based on text information construction on GEM market is of great significance for the long-term and steady development of Chinese stock market.Based on the perspective of text mining,this paper uses text mining and text sentiment analysis technology to construct investor sentiment composite index and investor sentiment individual stock index from the macro index and micro stock level respectively,and uses the constructed index to analyze the impact of investor sentiment on GEM.Drawing upon the aforementioned research,this paper arrives at the subsequent conclusions:(1)The investor sentiment index based on text mining and text sentiment analysis can effectively reflect the investor sentiment in the stock market.Through text mining and text sentiment analysis,this paper constructs the investor sentiment composite index and investor sentiment individual stock index respectively.Through graph fitting,it is found that the constructed investor sentiment index is positively correlated with stock prices,but when the market sentiment is extremely high or low,there is often a reversal.(2)The return rate of the GEM index is significantly affected by the investor sentiment composite index,and vice versa.The VAR model used in the empirical analysis at the macro index level reveals that the investor sentiment composite index has a notable impact on the return rate of the GEM index.Furthermore,there exists a direct and significant impact of the GEM index’s return rate fluctuation on the investor sentiment composite index,and both variables are found to be Granger-causal to each other.(3)The study reveals that at the micro level of individual stocks,the investor sentiment individual stock index has a significant positive impact on the yield of 46 constituent stocks in the GEM’s 50 index.According to the results of the empirical analysis utilizing the fixed effect model,there exists a significant positive correlation between the investor sentiment individual stock index,which is constructed in this study,and the 46 constituent stocks in the GEM’s 50 index.Based on the aforementioned conclusions,this paper proposes recommendations and measures to address the issue at hand:(1)Individual investors should maintain rationality and actively enhance their risk awareness when facing the complex financial information and online stock commentary.They should make investment decisions that are suitable for their own economic strength and risk tolerance by considering their individual financial capabilities and risk-taking abilities;(2)The listed company should treat the emotional changes and fluctuations of investors with a rational attitude,enhance the effectiveness and pertinence of information disclosure,and pay attention to the changes of investor sentiment;(3)Regulators will increase their focus on the shifts in investor sentiment and enhance their supervision of the securities market as a result.In order to guarantee the sound and steady growth of the Chinese securities market,it is important to intensify efforts to combat activities that violate the rights and interests of investors,maintain their confidence,monitor their sentiment,and steer public opinion in a positive direction.