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Academic Journal of Business & Management, 2023, 5(22); doi: 10.25236/AJBM.2023.052215.

Investor sentiment and stock prices


Senyun Chen

Corresponding Author:
Senyun Chen

Nanjing University of Science and Technology, Nanjing, China


With the development of China's stock market, emotions play an important role in stock price fluctuations. This paper selects the monthly data of the investor sentiment composite index and the closing price of the CSI 300 Index from January 2017 to November 2022, uses the least squares method to study the long-term and short-term relationship between investor sentiment and stock market prices, and then analyzes the dynamic relationship between the two based on the VAR model by using the impulse response function. The study found that investor sentiment and stock market prices have a stable equilibrium relationship in the short and long term, and in the short term, the two will produce a positive impact on each other, but this positive impact will not last long.


investor sentiment, stock prices, behavioral finance

Cite This Paper

Senyun Chen. Investor sentiment and stock prices. Academic Journal of Business & Management (2023) Vol. 5, Issue 22: 105-116. https://doi.org/10.25236/AJBM.2023.052215.


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