Discuss the rationale behind the cross-sectional impact of investor sentiment on stock returns.

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Discuss the rationale behind the cross-sectional impact of investor sentiment on stock returns.

Discuss the impact of investor sentiment on stock returns conditional on economic conditions.

 

Empirical methods in Accounting and finance

Description

Answer all questions within the assignment instructions which has been attached also spss will need to be used and data must be shown via screen shots. there are 7 requirements in this assignment which must be followed.

Requirement 1:

  1. Discuss the rationale behind the cross-sectional impact of investor sentiment on stock returns.

Requirement 2:

  1. Discuss the impact of investor sentiment on stock returns conditional on economic conditions.

Requirement 3:

  1. Select one emerging market.
  2. Motivate your selection.

Requirement 4:

  1. Assess merits and flaws of survey-based investor sentiment proxies.
  2. Assess merits and flaws of market-based investor sentiment proxies.

Requirement 5:

  1. Find two proxies for your selected market.
  2. Motivate your selection.

Requirement 6:

  1. Present descriptive statistics of market returns and two series of investor sentiment.
  2. Interpret.

Requirement 7:

  1. Examine the relation between market returns and investor sentiment.
  2. Examine the relation between market returns and investor sentiment across different economic conditions.
  3. Discuss limitations of your analysis.

Along with the main report you also need to submit the original dataset and screenshots of results from SPSS or EViews.