Please use this identifier to cite or link to this item:
Dhaoui, Abderrazak
Khraief, Naceur
Year of Publication: 
[Journal:] Arab Economic and Business Journal [ISSN:] 2214-4625 [Volume:] 9 [Year:] 2014 [Issue:] 2 [Pages:] 115-132
In this paper, we will offer some evidence indicating that investor sentiment plays a central role in explaining trading intensity and market trend changes. Based on both econometric and fuzzy logic approaches, the empirical findings show that pessimistic sentiment has a particularly significant impact on the French financial market trend. Moreover, the results suggest that the impact of pessimism on asset returns exceeds that of optimism as a direct indicator of investor's beliefs. Indirect indicators of agent sentiment present more smoothed effects on these two market components. Our results indicate that incorporating psychological factors in macro-financial models leads to better supervision and control of the main drivers of the markets.
Trading intensity
Market trend
Animal spirits
Fuzzy logic
Persistent Identifier of the first edition: 
Creative Commons License:
Document Type: 
Social Media Mentions:

Files in This Item:

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.