Research On The Influence Of Investor Sentiment On Stock Market Based On Text Mining

At present,the stock market in China is mainly composed of retail investors,lacking of rational investment decision-making,and the market is full of ups and downs.Therefore,the sentiment of investors in China's stock market will spread among retail investors,which will have an important impact on the fluctuation of the stock market.With the development of information technology in financial market,people rely more and more on obtaining information through social networking platform to express their views and opinions.Microblog,post bar,stock forum and so on have become an important way for investors,especially retail investors,to express their opinions and sentiments on the stock market.In this context,exploring the impact of public opinion conveyed by online commentary information on the stock market has a considerable practical guiding significance for preventing the risk of stock market volatility,predicting the future trend of the stock market and providing relevant policy recommendations for decision makers.In the past research,the questionnaires and telephone surveys were generally used to reflect the investor's emotional state,or the financial market trading variables such as closed-end fund discount rate and IPO quantity were used as indicators to construct statistical indicators to measure investor sentiment.In the context of financial big data,this paper uses text mining method to quantify investor sentiment through text sentiment analysis,and then comprehensively considers the emotional level and the consistency of investor's viewpoint to obtain a more intuitive and accurate investor sentiment index.investors' psychological expectations and emotional changes in the stock market can be quickly reflected in their investment decision-making behavior,and there is no obvious lag characteristic.When investor sentiment is shocked,the SSE yield and volatility will immediately show a fierce reaction,but in the long run,this effect will gradually become zero.When the SSE yield is positively impacted,investor sentiment will also generate Intense reaction,but the difference is that investor sentiment has a negative impact and will continue.When the volatility of the Shanghai Composite Index is affected by a positive impact,investor sentiment will also react violently and this reaction will eventually lead to a stable positive impact.Through the results of variance decomposition,it is found that both the SSE yield and the investor sentiment account for a large proportion of the other party's changes.In particular,the change in investor sentiment is driven by changes in the stock market's return rate in the long run.The fluctuation of the volatility of the Shanghai Composite Index is mainly due to itsown volatility,and the change in the volatility of the stock market in the change of investor sentiment is the most important factor.Through this research,it proposes to establish investor early warning mechanism for emotional risk,encourage institutional investors to enter the market,and prudently implement stock market policies.It also provides some income for individual investors to predict the future trend of the market through the relationship between sentiment index and stock market.The theoretical basis.