Journal of Northeastern University Natural Science ›› 2020, Vol. 41 ›› Issue (1): 143-147.DOI: 10.12068/j.issn.1005-3026.2020.01.025

• Management Science • Previous Articles     Next Articles

Effect of Investor Sentiment on Stock Prices from the Perspective of Spatial Interaction

JIANG Shang-wei, JIN Xiu   

  1. School of Business Administration, Northeastern University, Shenyang 110169, China.
  • Received:2019-04-16 Revised:2019-04-16 Online:2020-01-15 Published:2020-02-01
  • Contact: JIANG Shang-wei
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Abstract: The spatial weight matrix reflecting spatial interaction was constructed from the two aspects of economic distance measured by consumption coefficient and geographic distance to study the effect of investor sentiment on stock prices from the perspective of spatial interaction. The results show that there is significant spatial interaction between stocks in the financial market, and the spatial interaction is more sensitive to economic distance than geographic distance. The spatial cross-sectional regression model is superior to the traditional cross-sectional regression model in explaining the effect of investor sentiment on stock prices. The conclusion reminds investors that in the process of asset pricing and transaction decision-making, it is necessary to fully understand the potential spatial interaction.

Key words: spatial interaction, investor sentiment, stock price, spatial weight matrix, spatial distance

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