Abstract
Earning profit is always the paramount issue for investors. Many factors have been proved to affect stock returns, although information uncertainty is rarely discussed. This study examines how the effect of investors’ sentiments on stock returns and trading volumes is moderated by information uncertainty. Text mining technology is used to analyze the opinions of investors on a popular financial forum to investigate their thoughts and feelings about investment. After that, structural equation modeling (SEM) is used to verify the hypotheses in weekly, monthly and quarterly intervals. Our findings demonstrate that investors’ sentiments positively affect the stock returns only in the short-term (weekly) interval, and this relation is also moderated by information uncertainty in the short-term interval. Investors’ sentiments negatively affect the trading volumes in the short-term and median-term intervals, and this relation is also moderated by the information uncertainty in the short-term and median-term intervals.

Keywords
Information Uncertainty; Stock Return; Sentiment Analysis; Text Mining.

Cite this paper
Fang-Ming Hsu, Chien-Ho Liao, Qian-Feng Liu, The Influence of Investors’ Sentiments to Trading Volumes and Stock Returns with Information Uncertainty , SCIREA Journal of Mathematics. Volume 4, Issue 4, August 2019 | PP. 72-103.

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