Googling investor sentiment around the World

Zhenyu Gao; Haohan Ren; Bohui Zhang

doi:10.1017/S0022109019000061

Googling investor sentiment around the World

Zhenyu Gao, Haohan Ren, Bohui Zhang

Research output: Contribution to journal › Article › peer-review

112 Citations (Scopus)

Abstract

We study how investor sentiment affects stock prices around the world. Relying on households’ Google search behavior, we construct a weekly measure of sentiment for 38 countries during 2004–2014. We validate the sentiment index in tests using sports outcomes and show that the sentiment measure is a contrarian predictor of country-level market returns. Furthermore, we document an important role of global sentiment in stock markets.

Original language	English
Pages (from-to)	549 - 580
Number of pages	32
Journal	Journal of Financial and Quantitative Analysis
Volume	55
Issue number	2
DOIs	https://doi.org/10.1017/S0022109019000061
Publication status	Published - Mar 2020
Externally published	Yes

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title = "Googling investor sentiment around the World",

abstract = "We study how investor sentiment affects stock prices around the world. Relying on households{\textquoteright} Google search behavior, we construct a weekly measure of sentiment for 38 countries during 2004–2014. We validate the sentiment index in tests using sports outcomes and show that the sentiment measure is a contrarian predictor of country-level market returns. Furthermore, we document an important role of global sentiment in stock markets.",

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Googling investor sentiment around the World

Abstract

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