Investor Sentiment and Its Mechanisms in Financial Markets: A Comprehensive Review

作者：Zhenqi Guo, Yiqi Luo, Qianwen Wei, Yiling Huang, Kaifu Luo, Rong‐Bao Lu, Qiong Ke, Nianjiao Peng · 发表于：European Journal of Business Economics & Management · 年份：2025 · DOI：10.71222/vagryy03 · 被引用次数：1 · 研究领域：Financial Markets and Investment Strategies、Stock Market Forecasting Methods、Market Dynamics and Volatility

Investor sentiment significantly shapes stock market behavior, influencing asset prices, trading activity, market risk, and portfolio allocation. This review synthesizes conceptual frameworks, empirical evidence, and mechanisms through which sentiment affects financial markets, covering both developed and emerging markets. Direct and indirect sentiment measures, including surveys, market-based indicators, and text-based analyses, are evaluated. Findings underscore that optimism and pessimism drive overreaction, herding, and volatility, while also affecting asset allocation decisions. The review discusses practical implications for investors, regulators, and researchers, and identifies future research directions, including multi-modal sentiment analysis and theinteractions among behavioral biases.