IDEAS home Printed from https://ideas.repec.org/a/taf/eurjfi/v30y2024i16p1972-1983.html
   My bibliography  Save this article

If you feel good, I feel good! The mediating effect of behavioral factors on the relationship between industry indices and Bitcoin returns

Author

Listed:
  • Antonios Kalyvas
  • Zeming Li
  • Panayiotis Papakyriakou
  • Athanasios Sakkas

Abstract

Do behavioral factors mediate the relationship between industry returns and Bitcoin returns? We use four industry indices in technology, energy, clean energy, and banking, and the Sentiment index from Thomson Reuters Marketpsych Indices as a behavioral factor to investigate this question. We show that the sensitivities of technology and clean energy industry indices to Sentiment, positively and significantly, strengthen the relationship between sentiment and Bitcoin returns. By showing that behavioral factors mediate the association between the returns of industry indices and Bitcoin returns, we provide evidence that investors’ Sentiment captures the association between Bitcoin and sectors related to cryptocurrencies. Our results, however, do not support prior studies’ findings of a direct relationship between the industry indices and Bitcoin returns.

Suggested Citation

  • Antonios Kalyvas & Zeming Li & Panayiotis Papakyriakou & Athanasios Sakkas, 2024. "If you feel good, I feel good! The mediating effect of behavioral factors on the relationship between industry indices and Bitcoin returns," The European Journal of Finance, Taylor & Francis Journals, vol. 30(16), pages 1972-1983, November.
    • Handle: RePEc:taf:eurjfi:v:30:y:2024:i:16:p:1972-1983
    DOI: 10.1080/1351847X.2021.1976665
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1351847X.2021.1976665
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1351847X.2021.1976665?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:eurjfi:v:30:y:2024:i:16:p:1972-1983. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/REJF20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.