Research on the Relationship Between FinTech Attention and Its Sector Returns
International Journal of Economics, Finance and Management Sciences
Volume 8, Issue 1, February 2020, Pages: 57-62
Received: Apr. 14, 2020;
Published: May 27, 2020
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Jiangjiao Duan, Business School, University of Shanghai for Science and Technology, Shanghai, China
Jiqing Liu, Business School, University of Shanghai for Science and Technology, Shanghai, China
Qian Chen, Business School, University of Shanghai for Science and Technology, Shanghai, China
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With the development and application of Internet technology, investors usually use Internet search engine to investigate the corporation and related information before making investment decision. As a result, Internet search engine has become an indicator of investors’ attention. This paper uses FinTech Baidu index derived from Baidu public platform to measure investors' attention, as well as FinTech index from Shenzhen stock exchange, whose index code is 399699. SZ. The index data covers a date range from June 9, 2017 to June 30, 2019. Empirically, this paper discusses the impact of online attention on the stock returns of financial science and technology sector. A vector auto-regressive (VAR) model is built to reveal the correlation between Fintech investor attention and its sector returns. Furthermore, the granger causality, impulse response and variance decomposition are analyzed. Granger causality test result indicates that FinTech investor attention is the granger cause of the stock returns of Fintech sector, and conversely the stock returns of Fintech sector are not the cause of FinTech investor attention. That is, FinTech online attention has a certain impact on the stock returns of Fintech sector. Impulse response indicates that the impact of FinTech online attention is positive, but the effect lasts in a short term. The conclusions play an important role for investors to understand the hotspot attention on FinTech which is a new emerging market investment opportunity, and provide a general knowledge about the relation between Fintech attention and market returns.
Investor Attention, Internet Search, FinTech, Index Return
To cite this article
Research on the Relationship Between FinTech Attention and Its Sector Returns, International Journal of Economics, Finance and Management Sciences.
Vol. 8, No. 1,
2020, pp. 57-62.
Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/
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