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Financial shocks, investor sentiment, and heterogeneous firms’ output volatility: Evidence from credit asset securitization markets

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  • Li, Jia
  • Yang, Jianfei

Abstract

Continuous improvement of the financial system and securities assets represented by bonds is emerging as the main direction of enterprises financialization. Therefore, this study finds that financial shocks lead to higher output volatility of heterogeneous firms and that the negative effect is strengthened by investor sentiment. The findings offer practical guidance for firms to observe financial shocks and investor sentiment.

Suggested Citation

  • Li, Jia & Yang, Jianfei, 2024. "Financial shocks, investor sentiment, and heterogeneous firms’ output volatility: Evidence from credit asset securitization markets," Finance Research Letters, Elsevier, vol. 60(C).
    • Handle: RePEc:eee:finlet:v:60:y:2024:i:c:s1544612323012321
    DOI: 10.1016/j.frl.2023.104860
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