Investor Sentiment and Stock Market Crashes a Heliobiological Perspective

Teng, Chia-Chen; Wu, Wei-Shao; Yang, J. Jimmy

doi:10.2139/ssrn.4706626

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Investor Sentiment and Stock Market Crashes a Heliobiological Perspective

23 Pages Posted: 25 Jan 2024

See all articles by Chia-Chen Teng

Chia-Chen Teng

Chung Yuan Christian University - Department of Finance

J. Jimmy Yang

Oregon State University

There are 3 versions of this paper

Abstract

Drawing from the literature concerning the relations among solar activities, investor sentiment, and stock market crashes, we find that the number of sunspots is significantly and negatively associated with the frequency and severity of market crashes. The relation between sunspots and market crashes not only applies to the U.S. stock market but other developed and emerging stock markets.

Keywords: Investor sentiment, Market crashes, Sunspots

Suggested Citation: Suggested Citation

Teng, Chia-Chen and Wu, Wei-Shao and Yang, J. Jimmy, Investor Sentiment and Stock Market Crashes a Heliobiological Perspective. Available at SSRN: https://ssrn.com/abstract=4706626 or http://dx.doi.org/10.2139/ssrn.4706626