STIE MCESTIE MCE

Journal of Accounting, Business and Management (JABM)Journal of Accounting, Business and Management (JABM)

This study undertakes the theory of stimulus organism response (SOR theory) to explain and predict investor emotion and investor behavior during the Covid-19 pandemic in France and Germany financial markets. In this paper, we apply the non-parametric volatility model, the vector autoregressive model, and the nonlinear autoregressive exogenous neural network model. Empirical results show a high level of jumps in investor emotion and investor behavior during the first wave of Covid-19. Moreover, we find the existence of emotional response to Covid-19, lockdown, and government support stimuli. Indeed, we find that Covid-19 stimuli enhance investor fear, while government support stimuli minimize the level of fear. Then, the investor emotion stimulates investor behavior, generating a behavioral response that confirms the SOR theory. However, we find that during the Covid-19 pandemic, market and bank stimuli present a lower effect on investor emotion compared with stimuli related to the Covid-19 crisis. The Covid-19, lockdown, and government support stimuli efficiently predict investor emotion.

The study confirms the validity of the Stimulus-Organism-Response (SOR) theory in explaining stock price dynamics during the Covid-19 pandemic in Germany and France.Investor emotion is significantly influenced by stimuli related to the pandemic, including lockdowns, case numbers, vaccinations, and government support.This emotional response, in turn, significantly impacts investor behavior.The findings highlight the importance of identifying environmental stimuli to predict investor emotion and stabilize financial markets during crises.

Penelitian lebih lanjut dapat dilakukan untuk menguji apakah model SOR ini dapat diterapkan pada pasar keuangan negara berkembang dengan karakteristik yang berbeda. Selain itu, penelitian dapat diperluas dengan mempertimbangkan faktor-faktor lain yang dapat memengaruhi emosi investor, seperti berita media sosial dan sentimen publik. Terakhir, pengembangan model prediktif yang lebih canggih, seperti penggunaan machine learning, dapat dilakukan untuk meningkatkan akurasi prediksi emosi dan perilaku investor selama masa krisis. Penelitian ini dapat membantu investor dan pembuat kebijakan untuk lebih memahami dinamika pasar keuangan dan mengambil keputusan yang lebih tepat, terutama dalam menghadapi situasi yang penuh ketidakpastian seperti pandemi.

  1. The Generic Nature of the Concepts of Stimulus and Response: The Journal of General Psychology: Vol 12,... tandfonline.com/doi/full/10.1080/00221309.1935.9920087The Generic Nature of the Concepts of Stimulus and Response The Journal of General Psychology Vol 12 tandfonline doi full 10 1080 00221309 1935 9920087
  2. 0. 1ja hc wk vo up7 sg c7 nzkau a4 zy vw hau rx ar yfp zug vm w8ky 7vuz sz ec w1 1p uc f1 qy zii 3qj... doi.org/10.3389/fpsyg.2021.7085370 1ja hc wk vo up7 sg c7 nzkau a4 zy vw hau rx ar yfp zug vm w8ky 7vuz sz ec w1 1p uc f1 qy zii 3qj doi 10 3389 fpsyg 2021 708537
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