The Impact Of Investor Web Search On The Stock Market

Attention is a core concept of behavioral finance,which holds that due to time and energy constraints,investors often cannot access and fully understand market information in a timely manner.Individuals can only analyze and judge the limited information they pay attention to,and adjust their investment behaviors,leading to abnormal returns.Internet users' search data is the most direct objective evidence of Internet users' search behavior,which not only reflects the objective search needs of Internet users,but also reflects the focus and direction of Internet users to a certain extent.Snowball network is a platform that integrates investment,exchange and trading.In this paper,the proxy variable of network search quality index is established by selecting data of snowball network,among which the data of snowball network comes from its cooperation with WIND database.Therefore,the integrity and accuracy of data are strictly guaranteed.At the same time,this paper studies the influence of investors' Internet search behavior on stock price idiosyncratic volatility and pricing efficiency by combining the characteristic indexes of analysts in the database of gutai 'an.It is found that the synchronization between Internet search and stock price presents a nonlinear u-shaped relationship,that is,the synchronization of stock price decreases with the increase of Internet search.However,with the further increase of Internet search,stock price synchronization tends to rise,and stock price synchronization will present a u-shaped trend.However,there is a significant positive correlation between idiosyncratic volatility in the stock market and Internet search behavior Since analysts' reports can alleviate the problem of information asymmetry to a certain extent,when we introduce the interaction term between analysts' forecasting indicators and investors' network search behavior,we find that the interaction term can explain the synchronicity and idiosyncratic volatility of stock prices to a certain extent.Finally,through a comparative study of the effect of Internet search on the synchronicity of stock prices in a bull market,the research group found that with the increase of Internet search,both in a bull market and a bear market,the synchronicity of stock prices decreased gradually with the increase of the quality of Internet search information.However,in a bull market,Internet search is more efficient at pricing stocks than in a bear market,so it can be found that investor sentiment has a significant impact on stock pricing.From the perspective of limited attention of investors,this study discusses the influence of Internet search on stock price volatility and synchronicity in the stock market,provides a new perspective for Internet pricing on a certain basis,and expounds the reasons and performance of Internet search on the stock market.This study is not only helpful to understand the influence mechanism of China's stock network search on the stock market,but also provides more reasonable decision-making basis for individual and institutional investors.It also provides some practical basis for the stock regulatory layer of the company management to regulate and supervise the stock market.