Impacts of investor sentiment on stock price volatility on listed fims in Vietnam

Abstract

This study uses data from 198 companies listed on the Ho Chi Minh City Stock Exchange in the
period 2011-2021, to test whether or not investor sentiment in the market affects stock price movements. By
using quantitative research methods such as OLS, FEM, REM, GLS, Hausman, Wald, Wooldridge; the research
results show that investor sentiment for each individual stock, investor sentiment for the entire market have
a positive and statistically significant impact on the volatility of listed stocks. In addition, profitability, revenue
growth rate of enterprises also have a positive influence on stock price volatility, while CPI and GDP have
an inverse relationship. This research contributes to the theoretical basis of investor psychology by indirect
methods on how it influences on stock price movements.