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The Impact of Investors¡¯ Sentiment on the Equity Market: Evidence from Ghanaian Stock Market

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  • Ebenezer Bennet
  • Lydia Obenewaa Amoako
  • Ricky Okine Charles
  • Asumadu Edward
  • Joseph Asante Darkwah

Abstract

Investor¡¯s Sentiment plays a major role in choosing which stocks we invest. Investors¡¯ sentiment can be defined as investors¡¯ attitude and opinion towards investing in the Stocks. The aim of this research is to analyse the individual investor¡¯s sentiment and also to analyse the influence of Market Specific Factors on investors¡¯ sentiment. The investor¡¯s attitude towards investing is influenced by rumours, intuition, herd behaviour among investors and media coverage of the stock. 100 investors in Ghana were chosen for the study. These investors were administered a Structured Schedule, containing pre-validated scales to measure the investor sentiment. Once the constructs were found to be both reliable and valid, the impact of Herd Behaviour, Internet Led Access to Information and Trading, Macro Economic Factors, Risk and Cost Factors, Performance Factors and Confidence Level of Institutional Investors, Best Game in Town Factors were tested by using the Bootstrapping method. Few Market Specific Factors had a significant impact on the investors¡¯ sentiment in Ghana.

Suggested Citation

  • Ebenezer Bennet & Lydia Obenewaa Amoako & Ricky Okine Charles & Asumadu Edward & Joseph Asante Darkwah, 2012. "The Impact of Investors¡¯ Sentiment on the Equity Market: Evidence from Ghanaian Stock Market," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 3(5), pages 99-109, September.
    • Handle: RePEc:jfr:ijba11:v:3:y:2012:i:5:p:99-109
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    1. Shelly Srivastava & Supriyo Roy, 2023. "Impact of Equity Investment Intention Towards Behaviour: An Empirical Analysis," Vision, , vol. 27(3), pages 329-346, June.
    2. Ali Shaddady & Mohammed Alsaggaf, 2020. "Issues that Matter When Behavioral Finance Factors Drive the Largest Initial Public Offering in the Saudi Financial Market," International Journal of Economics and Financial Issues, Econjournals, vol. 10(6), pages 106-117.

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