Research on the Transfer Rules of Internet Users’ Negative Emotional State in Financial Public Opinion

Lei Li

doi:10.4236/ojbm.2020.81017

Abstract

As the rapid development of internet and the booming of financial market in China, the study of extracting the emotional state of netizens from financial public opinions and using it for quantitative investment analysis has drawn a lot of attention. Because of the limitation of datasets scale, quantitative investment analysis based on financial public opinion has some unsolved problems in the research of financial analysis, such as the results cannot predict the stock price in real stock markets. Based on the long-short-term memory network in deep learning, the proposes study combined with the theory of herding effect in behavioral finance, this paper designs an emotional classification model for netizens’ comments on social media, interpret emotional state transaction of netizens through sentiment analysis, forming an investor’s emotional states’ transfer model, and incorporating the emotional states as a factor into the stock price-forecasting model at last. The results show that the investor’s emotional states have a significant impact on stock price volatility. This stock price forecasting method based on sentiment analysis also provides a new technical path for quantitative investment analysis in the financial market.

Highlights

IntroductionWith the gradual improvement of national cultural level, the popularization of stock market policy and the rapid rise of various media, more and more people begin to use the Internet for investment and financing, and express their views on the Internet, which integrate financial public opinion
Internet technology and its application are gradually penetrating into our lives
While making reasonable explanations for the transfer of emotional state, this emotional index was incorporated into the stock prediction model, and the conclusion was drawn as follows: 1) Sentiment analysis can affect stock prices

Summary

Introduction

With the gradual improvement of national cultural level, the popularization of stock market policy and the rapid rise of various media, more and more people begin to use the Internet for investment and financing, and express their views on the Internet, which integrate financial public opinion. Behavioral finance research shows that emotions have a significant impact on investors’ investment decisions (Zhou 2018; Liu Weiwei and Liu Xinxin 2014) [2] [3]. Investors tend to overestimate investment opportunities and underestimate investment risks, making transactions frequent; in a negative mood, on the contrary. Such irrational investment behavior is not conducive to the stable development of the stock market. How to correctly analyze financial public opinion information and use it to correctly guide investors’ investment sentiment is important

Methods

Results

Conclusion