Investors ’ Sentiment influenced by Stock Specific Factors

The investors ’ sentiment can be defined as investors ’ attitude and opinion towards investing in the Stocks. The aim of this research is to analyse the individual investors ’ sentiment. This study also analyses the influence of Stock specific factors on investors ’ sentiment. The investor’s attitude towards investing is influenced by rumours, intuition, herd behaviour among investors and media coverage of the stock. A simple random sample of 375 Investors in Tamil Nadu were chosen for the study. These investors were administered a structured Schedule containing pre-validated scales to measure the investor sentiment. Once the constructs were found to be both reliable and valid, the impact of expected events surrounding the stock and the book value, recommendation of the financial community and price cut off rules were tested using bootstrapping method. The Stock specific factors had a significant impact on the investors ’ sentiment