Sentiment Metrics and Investor Demand

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

Research output: Contribution to journalArticle

3 Citations (Scopus)

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 languageEnglish (US)
Pages (from-to)985-1024
Number of pages40
JournalJournal of Finance
Volume74
Issue number2
DOIs
StatePublished - Apr 1 2019

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Investors
Sentiment
Institutional investment
Individual investors
Economics
Risk management
Share ownership
Traders
Demand shocks
Investment style
Momentum trading

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics

Cite this

Sentiment Metrics and Investor Demand. / DeVAULT, L. U.K.E.; Sias, Richard W; Starks, Laura.

In: Journal of Finance, Vol. 74, No. 2, 01.04.2019, p. 985-1024.

Research output: Contribution to journalArticle

DeVAULT, LUKE, Sias, RW & Starks, L 2019, 'Sentiment Metrics and Investor Demand', Journal of Finance, vol. 74, no. 2, pp. 985-1024. https://doi.org/10.1111/jofi.12754
DeVAULT, L. U.K.E. ; Sias, Richard W ; Starks, Laura. / Sentiment Metrics and Investor Demand. In: Journal of Finance. 2019 ; Vol. 74, No. 2. pp. 985-1024.
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