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Music sentiment and stock returns

Author

Listed:
  • Fernandez-Perez, Adrian
  • Garel, Alexandre
  • Indriawan, Ivan

Abstract

We develop a novel measure of investor sentiment based on the valence of songs that individuals listen to. Our measure of music sentiment captures seasonal and weather-induced mood swings and is associated with a systematic pattern of mispricing correction.

Suggested Citation

  • Fernandez-Perez, Adrian & Garel, Alexandre & Indriawan, Ivan, 2020. "Music sentiment and stock returns," Economics Letters, Elsevier, vol. 192(C).
    • Handle: RePEc:eee:ecolet:v:192:y:2020:i:c:s0165176520301774
    DOI: 10.1016/j.econlet.2020.109260
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    References listed on IDEAS

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    Cited by:

    1. Edmans, Alex & Fernandez-Perez, Adrian & Garel, Alexandre & Indriawan, Ivan, 2022. "Music sentiment and stock returns around the world," Journal of Financial Economics, Elsevier, vol. 145(2), pages 234-254.
    2. Riso, Luigi & Vacca, Gianmarco, 2024. "Sentiment dynamics and volatility: A study based on GARCH-MIDAS and machine learning," Finance Research Letters, Elsevier, vol. 62(PB).
    3. Yuan Li, 2022. "Mood Beta, Sentiment and Stock Returns in China," SAGE Open, , vol. 12(1), pages 21582440221, February.
    4. Hadhri, Sinda, 2023. "Do cryptocurrencies feel the music?," International Review of Financial Analysis, Elsevier, vol. 89(C).
    5. Cynthia Pagliaro & Dhagash Mehta & Han-Tai Shiao & Shaofei Wang & Luwei Xiong, 2021. "Investor Behavior Modeling by Analyzing Financial Advisor Notes: A Machine Learning Perspective," Papers 2107.05592, arXiv.org.
    6. Chiah, Mardy & Hu, Xiaolu & Zhong, Angel, 2022. "Photo sentiment and stock returns around the world," Finance Research Letters, Elsevier, vol. 46(PB).
    7. Guo, Feng & Lin, Zhiyuan & Lyu, Xiaoliang & Shi, Qingling, 2023. "Does air pollution influence music sentiment? Measuring music sentiment by machine learning," Journal of Asian Economics, Elsevier, vol. 87(C).
    8. Juan Lucio & Marco Palomeque, 2023. "Music preferences as an instrument of emotional self-regulation along the business cycle," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 47(2), pages 181-204, June.

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    More about this item

    Keywords

    Investor sentiment; Music sentiment; Mispricing; Mood; Valence;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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