This study reviews literature which is related to investor sentiments, including the meanings of investor sentiments, the factors affecting investor sentiments, the indexes designed to measure investor sentiments, and the effects of investor sentiments. Discussion of these topics in literature can provide valuable insights and is very worthy of reference.
Pessimistic and optimistic are two viewpoints mainly mentioned in the past literature about investor sentiments. Their factors which influence investor sentiment usually include personal background, natural environment and market varieties. Nowadays, there are three common kinds of investor sentiment measure indexes, such as market parameters, climate factors, and consumer confidence indexes. Finally, the past studies points out that investor sentiment affect mainly focus on stock compensation, analysts, fund performance and herd behavior.
