| Abstract [eng] |
The main objective of this master's thesis is to systematize the emotions that affect stock market trading in theory, and to investigate and determine the impact of specific investor emotions, as reflected in news articles, on European stock market indices. The master's thesis consists of four main parts: literature review, methodology, research and its results, conclusions and recommendations. The literature review covers theories of investor behavior and emotions, and the importance of emotions in investment decision-making. It also examines the dissemination of emotions through the media, real fluctuations in stock market indicators caused by emotions, and related empirical research. In the literature review, the author systematized emotions and their impact on stock market indicators in other markets. The main objective of this study was to determine how specific emotions affect stock market trading volume, returns, volatility, and price fluctuations in the European stock market. Descriptive statistics, Pearson's correlation matrices, and regressions using the least squares method were applied. The study was conducted using the Rstudio program. The results of the study were compared with studies conducted in other stock markets. The study found that investors' emotions in stock markets are interrelated and usually do not occur individually. The author also found that emotional movements are strongly related to various global or European events that have shaken the market. The master's thesis revealed that positive and negative emotional valences and some of the specific emotions studied affect 74 European stock market indicators - price, return, volatility, and dividend yield. This means that market participants are not rational and are influenced by emotions when trading on the markets. The conclusions and recommendations summarize the main aspects examined in the literature review and the results of the author's research. Insights into the impact of specific emotions on market indicators are presented. The results of the study contribute to the results of existing research in this field with a newly researched European stock market and additional insights. The author believes that the results of the master's thesis may be useful to individual investors who want to understand how emotions affect stock markets and how their individual emotions affect their investment decisions. |
