Sentiment Metrics and Investor Demand

L. U.K.E. DeVAULT; Richard Sias; Laura Starks

doi:10.1111/jofi.12754

Sentiment Metrics and Investor Demand

L. U.K.E. DeVAULT, Richard Sias, Laura Starks

Finance

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

86 Scopus citations

Abstract

Recent work suggests that sentiment traders shift from safer to more speculative stocks when sentiment increases. Exploiting these cross-sectional patterns and changes in share ownership, we find that sentiment metrics capture institutional rather than individual investors’ demand shocks. We investigate the underlying economic mechanisms and find that common institutional investment styles (e.g., risk management, momentum trading) explain a significant portion of the relation between institutions and sentiment.

Original language	English (US)
Pages (from-to)	985-1024
Number of pages	40
Journal	Journal of Finance
Volume	74
Issue number	2
DOIs	https://doi.org/10.1111/jofi.12754
State	Published - Apr 2019

ASJC Scopus subject areas

Accounting
Finance
Economics and Econometrics

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10.1111/jofi.12754

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title = "Sentiment Metrics and Investor Demand",

abstract = "Recent work suggests that sentiment traders shift from safer to more speculative stocks when sentiment increases. Exploiting these cross-sectional patterns and changes in share ownership, we find that sentiment metrics capture institutional rather than individual investors{\textquoteright} demand shocks. We investigate the underlying economic mechanisms and find that common institutional investment styles (e.g., risk management, momentum trading) explain a significant portion of the relation between institutions and sentiment.",

author = "DeVAULT, {L. U.K.E.} and Richard Sias and Laura Starks",

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Sentiment Metrics and Investor Demand

Abstract

ASJC Scopus subject areas

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