Abstract
This study aims to analyze the effect of investor sentiments on stock returns, stock prices, and required rates of return. This study uses quantitative analysis on the whole sample of non-financial companies listed on the Indonesian Stock Exchange for the period of 2011-2015. This research finds that investor sentiments had a negative effect on January stock returns and a positive effect on stock returns for a monthly average of 6 months. This study also finds that there is moderation of sentiments as an additional effect of accounting information to stock prices. There is moderation of high sentiments against the required rate of return with a negative correlation to the required rate of return.
| Original language | English |
|---|---|
| Title of host publication | Accounting, Auditing, CSR, and the Taxation in a Changing Environment |
| Subtitle of host publication | A Study on Indonesia |
| Publisher | Nova Science Publishers, Inc. |
| Pages | 3-22 |
| Number of pages | 20 |
| ISBN (Electronic) | 9781536165180 |
| ISBN (Print) | 9781536162776 |
| Publication status | Published - 1 Jan 2019 |
Keywords
- Behavioral finance
- Closing price
- Investor sentiments
- Required rate of return
- Stock returns