MS Banking and Finance

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Browsing MS Banking and Finance by Author "AROOJ AKBAR"

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    Impact of Investor Sentiment on Stock Returns
    (UMT.Lahore, 2023-07-24) AROOJ AKBAR
    This paper examines the interconnection among online investor's emotion and market returns within the SAARC region using the Twitter Happiness Index (THI) as a measure of emotion. Four empirical techniques are applied: Ordinary Least Squares (OLS) regression, Granger causality analysis, Quantile-on-Quantile (Q-Q) regression, and Cross Quantilogram analysis. The analysis utilizes a comprehensive dataset of Twitter data related to stock market discussions in the SAARC region. OLS regression explores the overall connection among emotion and returns of market while considering other factors. Granger causality analysis interrogates the causal connection among emotion and subsequent returns. Q-Q regression examines the emotion-return connection across different market conditions and levels of returns. Cross Quantilogram analysis explores the relationship’s direction and magnitude, capturing nonlinearity and asymmetry. The results provide valuable insights into the effect of online investor's emotion on market gains in the SAARC region, benefiting investors, policymakers, and market participants in the area.