Research Output
Investor sentiment and stock returns: Global evidence
  We assess the impact of investor sentiment on future stock returns in 50 global stock markets. Using the consumer confidence index (CCI) as the sentiment proxy, we document a negative relationship between investor sentiment and future stock returns at the global level. While the separation between developed and emerging markets does not disrupt the negative pattern, investor sentiment has a more instant impact in emerging markets, but a more enduring impact in developed markets. Individual stock markets reveal heterogeneity in the sentiment-return relationship. This heterogeneity can be explained by cross-market differences in culture and institutions, along with intelligence and education, to varying degrees influenced by the extent of individual investor market participation.

  • Type:


  • Date:

    19 July 2021

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  • Publisher

    Elsevier BV

  • DOI:


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  • Funders:

    Historic Funder (pre-Worktribe)


Wang, W., Su, C., & Duxbury, D. (2021). Investor sentiment and stock returns: Global evidence. Journal of Empirical Finance, 63, 365-391.



Consumer confidence index (CCI), Culture, Education, Global, Intelligence, Investor sentiment

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