Googling Investor Sentiment around the World

By Zhenyu Gao, Haohan Ren, Bohui Zhang. Journal of Financial and Quantitative Analysis, 2019

135 citations recorded by the source corpus.

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.

Subfields: Economics and Econometrics, Finance, Management Science and Operations Research

View Paper: https://www.semanticscholar.org/paper/d881c405d186d0f15c22c258555f024f03401cf7