IDEAS home Printed from https://ideas.repec.org/a/sae/emffin/v25y2026i2p228-252.html

Information or Noise? The Role of Investor Sentiment, Attention, and Analyst Coverage in Stock Price Synchronicity

Author

Listed:
  • Hajam Abid Bashir
  • Dilip Kumar

Abstract

We investigate the impact of stock-specific investor sentiment, investor attention, and analyst coverage on stock price synchronicity in the Indian market. We develop a stock-level investor sentiment index using nine sentiment proxies. The results show that investor sentiment has a negative impact on price synchronicity, supporting the notion that lower stock co-movement is associated with more noise rather than firm-specific information in the presence of stock-specific investor sentiment. Using the Google Search Volume Index as a measure of investor attention, we find that investor attention positively impacts the stock price synchronicity. Moreover, our findings reveal that the negative (positive) impact of investor sentiment (attention) on stock price synchronicity lessens (improves) the effect of analyst coverage on price synchronicity. JEL Codes: G02, G14, G12

Suggested Citation

  • Hajam Abid Bashir & Dilip Kumar, 2026. "Information or Noise? The Role of Investor Sentiment, Attention, and Analyst Coverage in Stock Price Synchronicity," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 25(2), pages 228-252, June.
    • Handle: RePEc:sae:emffin:v:25:y:2026:i:2:p:228-252
    DOI: 10.1177/09726527261416596
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/09726527261416596
    Download Restriction: no
    File URL: https://libkey.io/10.1177/09726527261416596?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:emffin:v:25:y:2026:i:2:p:228-252. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.ifmr.ac.in .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.