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Does Investor Sentiment Matter in Post-Communist East European Stock Markets?

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  • Dragos Stefan Oprea

Abstract

This study examines the relation between the sentiment of noise traders and stock prices in ten Post-Communist East European stock markets: Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovak Republic and Slovenia over the period April 2004 to March 2014. The results suggest that, in general, the sentiment of noise traders, proxied by the consumer confidence index, seems to have no impact on stock prices at a market wide level.

Suggested Citation

  • Dragos Stefan Oprea, 2014. "Does Investor Sentiment Matter in Post-Communist East European Stock Markets?," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(8), pages 356-366, August.
  • Handle: RePEc:hur:ijarbs:v:4:y:2014:i:8:p:356-366
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    References listed on IDEAS

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    Cited by:

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    2. Brzeszczyński, Janusz & Gajdka, Jerzy & Kutan, Ali M., 2015. "Investor response to public news, sentiment and institutional trading in emerging markets: A review," International Review of Economics & Finance, Elsevier, vol. 40(C), pages 338-352.

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    More about this item

    Keywords

    Investor Sentiment; Consumer Confidence Index; Noise; Causality; Post-Communist East European Countries;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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