Macroeconomic Variables and Investor Sentiment

Abstract

Many studies have shown that investor behavior is closely related to macroeconomic variables. In the Taiwan stock market, foreign investors, mutual funds, and dealers have a huge impact on the stock market, and the difference in their trading behavior comes from different investment needs. In order to explore the relationship between investor sentiment of three major institutional investors with macroeconomic variables, this paper sets the following hypotheses: (1) Investor sentiment of foreign investment, mutual funds, and dealers have a positive impact on macroeconomic variables; (2) Macroeconomic variables have a positive impact on the investor sentiment of the three major institutions; (3) In the bear market, the sentiment of the three major institutional investors has a positive impact on macroeconomic variables. The purpose of this article is to make up for the missing parts of the literature so far.