Investor's Anticipation and Future Market Movement: Evidence of Self-Fulfilling Prophecy Effect from the the Chinese Stock Market
13 Pages Posted: 28 Jan 2020 Publication Status: Accepted
We analyzed data collected from retail investors in the Chinese stock market from a Fintech mobile platform to find evidence of the self-fulfilling prophecy effect. We found a statistically significant correlation between the predicted and actual Shanghai Stock Exchange Composite Index (SSECI) as well as non-random deviation patterns. We also analyzed participating investor behaviors and discussed the implications and future research.
Keywords: stock market index, prediction, self-fulfilling prophecy effect, Fintech
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