Potential Predictors of Psychologically Based Stock Price Movements

Simple item page
dc.citation.issue8
dc.citation.volume17
dc.contributor.authorEast R
dc.contributor.authorWright M
dc.contributor.editorStengos T
dc.date.accessioned2024-10-08T22:45:42Z
dc.date.available2024-10-08T22:45:42Z
dc.date.issued2024-08
dc.description.abstractInvestment in stocks is increasingly dependent on artificial intelligence (AI), but the psychological and social factors that affect stock prices may not be fully covered by the measures currently used in AI training. Here, we search for additional measures that may improve AI predictions. We start by reviewing stock price movements that appear to be affected by social and psychological factors, drawing on stock market behaviour during the COVID-19 pandemic. A review of processes that are likely to produce such stock market movements follows: the disposition effect, momentum, and the response to information. These processes are then explained by regression to the mean, negativity bias, the availability mechanism, and information diffusion. Taking account of these processes and drawing on the consumer behaviour literature, we identify three factors which may not be covered by current AI training data that could affect stock prices: publicity in relation to capitalization, stock-holding penetration in relation to capitalization, and changes in the penetration of stock holding.
dc.description.confidentialfalse
dc.edition.editionAugust 2024
dc.identifier.citationEast R, Wright M. (2024). Potential Predictors of Psychologically Based Stock Price Movements. Journal of Risk and Financial Management. 17. 8.
dc.identifier.doi10.3390/jrfm17080312
dc.identifier.eissn1911-8074
dc.identifier.elements-typejournal-article
dc.identifier.number312
dc.identifier.urihttps://mro.massey.ac.nz/handle/10179/71643
dc.languageEnglish
dc.publisherMDPI (Basel, Switzerland)
dc.publisher.urihttps://www.mdpi.com/1911-8074/17/8/312
dc.relation.isPartOfJournal of Risk and Financial Management
dc.rights(c) The author/sen
dc.rights.licenseCC BYen
dc.rights.urihttps://creativecommons.org/licenses/by/4.0/en
dc.subjectmomentum
dc.subjectstock price prediction
dc.subjectartificial intelligence
dc.subjectavailability
dc.subjectnegativity bias
dc.subjectinformation diffusion
dc.titlePotential Predictors of Psychologically Based Stock Price Movements
dc.typeJournal article
pubs.elements-id491490
pubs.organisational-groupOther
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
Published version.pdf
Size:
1.57 MB
Format:
Adobe Portable Document Format
Description:
491490 PDF.pdf
Download
License bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
license.txt
Size:
9.22 KB
Format:
Plain Text
Description:
Download
Collections
Journal Articles