Research On The Stability Of Capital Market Based On Investor's Emotional

Based on the perspective of investor's sentiment,this paper mainly analyzes the investor's sentiment influence factors and its working mechanism,and uses analytic hierarchy process to construct the investor sentiment index,thus establishes the investor sentiment node model,which lays the foundation for the quantitative study of investor sentiment on the stability of the capital market.In this paper,five-middle-person communication model and infectious disease model are used to describe the characteristics of the investor's sentiment node model's output,while state space method is used to analyze the effectiveness of the investor's sentimental node model boundary influence factor and its influence on investor's sentiments.Based on the investor sentiment node model,I use the finite element method to study the impact of investor sentiment on the stability of the capital market,verify the correctness of this model,and analyze the output of this model thus conclude that investor sentiment has strong influence over the capital market's stability.The innovation points in this paper are listed as follows:The investor sentiment index is established based on the analytic hierarchy process,which lays the foundation of investor sentiment node mode.The internal and external factors of investor sentiment are studied by using methods like questionnaire,principal component analysis and literature review.Besides,analytic hierarchy process is used here to classify the investor's sentiment influence factors;the motivation model is used to divide the weights of investor influence factors.In order to study the influence of various parameters in the investor sentiment index,we use quantitative research method to construct an investor sentiment node model.The effectiveness of the boundary influence factors in the investor sentiment node model is analyzed by using the state-space method,and it draws the conclusion that each boundary influence factor has a significant impact to the investors' emotions.By using the five degrees of separation model and infectious disease model,we found that the output of the node model owns transmission characteristics.furthermore we analyze the effectiveness of the transmission and the influence of investor sentiment on the capital market.Besides we use the investor sentiment boundary model factors to build the investor sentiment boundary influence factor.Following that we conduct regression analysis to survey data mentioned earlier and modeling the analysis results.The analysis shows that boundary influence factor was significantly effective for investor sentiment.This article concludes with an explanation of the influence of various boundary impact factors on investor sentiment.Based on the finite element method and the investor sentiment node model,the enmpirical study on the impact of investor sentiment on the stability of the capital market is conducted.First.the news surface information is set as the interference factor,and we designed the simulation plan of the empirical research.Meanwhile,the hypothesis conditions of the finite element node model data are proposed,and then the quantitative analysis of the impact of news events on investor sentiment is completed,and the model input scheme of news surface information is established.Finally,through data processing,the parameter values of the investor's sentiment node model are obtained using inversion method.We got the model output results and start to analyze the change of investor enthusiasm and the change of investor positions under different interference factors.In brief,this paper summarizes the relevant empirical conclusions of how investor sentiment affects capital market stability.More specifically,the mutual infection of investor sentiment is the main theoretical basis for investor sentiment affecting the stability of capital market.The current negative events in capital market have a relatively great impact on investor sentiment and capital market stability,and market incentives that may occur in the future have an impact on the stability of the capital market.