Proceedings of the 8th International Research Conference on Economic and Business (IRCEB 2024)

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The Influence of Investor Sentiment on Returns in the Indonesian Stock Market

Authors
Zaida Rizqi Zainul1, Khaira Amalia Fachrudin1, Nisrul Irawati1, *, Syahyunan Syahyunan1
1Universitas Sumatera Utara, Medan, North Sumatera, Indonesia
*Corresponding author. Email: nisrul.irawati1962@gmail.com
Corresponding Author
Nisrul Irawati
Available Online 21 May 2025.
DOI
10.2991/978-94-6463-722-9_15How to use a DOI?
Keywords
Stock Returns; Sentiment; Market behavior; Investment
Abstract

This study aims to analyze sentiment towards stocks and the market in influencing stock returns. Panel data regression analysis is used to test the research hypothesis. The sample consists of 93 companies listed on the IDX during the period 2013–2023. The results of the study indicate that stock and market sentiment have a significant positive effect on stock returns in Indonesia. This finding supports the behavioral finance theory which states that emotional and psychological factors contribute to market dynamics. The results of this study enrich the theoretical under-standing of stock market behavior, especially in emerging markets such as Indonesia. Investors can use market sentiment analysis in their investment strategy, especially in short-term decision-making. Sentiment has been shown to positively affect stock returns, investors can time their investments based on changes in market sentiment to maximize potential profits. Investors also need to pay more attention to information that influences market sentiment, such as economic news, government policies, or global developments that can increase optimism or pessimism in the stock market.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 8th International Research Conference on Economic and Business (IRCEB 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
21 May 2025
ISBN
978-94-6463-722-9
ISSN
2352-5428
DOI
10.2991/978-94-6463-722-9_15How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Zaida Rizqi Zainul
AU  - Khaira Amalia Fachrudin
AU  - Nisrul Irawati
AU  - Syahyunan Syahyunan
PY  - 2025
DA  - 2025/05/21
TI  - The Influence of Investor Sentiment on Returns in the Indonesian Stock Market
BT  - Proceedings of the  8th International Research Conference on Economic and Business (IRCEB 2024)
PB  - Atlantis Press
SP  - 167
EP  - 175
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-722-9_15
DO  - 10.2991/978-94-6463-722-9_15
ID  - Zainul2025
ER  -