Purpose The purpose of this paper is to study and describe several biases in investment
decision-making through the review of research articles in the area of behavioral finance. It …

We propose a new investor sentiment index that is aligned with the purpose of predicting the
aggregate stock market. By eliminating a common noise component in sentiment proxies …

We explore the time-series relationship between investor sentiment and the small-stock
premium using consumer confidence as a measure of investor optimism. We estimate the …

We examine whether consumer confidence–as a proxy for individual investor sentiment–
affects expected stock returns internationally in 18 industrialized countries. In line with recent …

China's economy and the Asian stock markets have been severely impacted by the COVID-
19 outbreak. This article used an event study method to calculate the abnormal returns (AR) …

The general level of optimism/pessimism in society is reflected by the emotions of financial
decision-makers. Because these emotions are correlated across economic participants, our …

We consider whether sentiment affects the profitability of momentum strategies. We
hypothesize that news that contradicts investors' sentiment causes cognitive dissonance …

The Investor Sentiment Index (ISI) is widely regarded as a useful measure to gauge the
overall mood of the market. Investor panic may result in contagion, causing failure in …

This paper compares investor sentiment measures based on consumer confidence surveys
with measures extracted from the closed-end fund discount (CEFD). Our evidence suggests …

While investor sentiment has been shown to have a robust, direct impact on stock returns,
we know little about how it impacts returns through an indirect channel from conditional …