An Empirical Study of the Effect of Investor Sentiment on Returns of Different Industries

Table 7

Effects of optimistic and pessimistic sentiment on industry returns.

Industry	Parameter estimate 𝑐(1)	Parameter estimate 𝑐(2)	Industry	Parameter estimate 𝑐(1)	Parameter estimate 𝑐(2)
Farming, forestry, animal husbandry, and fishery	0.019735	0.001824	Textile and garment	0.037789**	−0.012290
Extractive industry	0.050252***	−0.013182	Light manufacturing	0.027157*	−0.003533
Chemical industry	0.034506***	−0.006345	Biopharmaceuticals	0.019993	0.000000
Ferrous metal	0.030332**	−0.003394	Public utility	0.027694**	−0.006654
Construction material	0.033261**	−0.003092	Real estate	0.039997***	−0.007899
Mechanical equipment	0.029462**	−0.000549	Financial service	0.031956***	−0.010535
Electronics	0.023487	−0.003223	Business and trade	0.033691**	−0.004681
Transportation equipment	0.038812**	−0.005461	Catering and tourism	0.024919*	−0.006449
Information equipment	0.016593	0.003059	Information service	0.021967*	−0.003415
Household appliances	0.027274*	0.000631	Integration	0.018913	−0.002284
Food and beverage	0.028954***	−0.006273

Notes: ∗∗∗, ∗∗, and ∗ denote, respectively, significance at the significance level of 1%, 5%, and 10%.