• ISSN: 2010-023X (Print)
    • Abbreviated Title: Int. J. Trade, Economics and Financ.
    • Frequency: Quaterly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Managing Editor: Ms. Shira. W. Lu
    • Abstracting/ Indexing:  Crossref, Electronic Journals Library , EBSCO
    • E-mail: ijtef.editorial.office@gmail.com
IJTEF 2021 Vol.12(3): 62-68 ISSN: 2010-023X
DOI: 10.18178/ijtef.2021.12.3.695

Research on the Conducting Effect of Monetary Policy on Stock Market Based on Investor Sentiment

Xin Jin, Mengting Li, and Tianxi Jin

Abstract—The research of stock market plays an important role in capital market and risk control. For the significant impact on the stock market, this paper studies the effect of monetary policy on the stock market as well as the effect of investor sentiment on the conducting effect of monetary policy by establishing VAR model. This paper also analyses the influence of monetary policy and investor sentiment on stock price in stages by combining specific events in the sample interval and using the structural mutation model. The study reveals that investor sentiment will greatly impact on the transmission of monetary policy, And with a relatively small influence, the impact of monetary policy on the stock market is not always present.

Index Terms—Conducting effect, investor sentiment, monetary policy, stock market.

The authors are with Harbin Institute of Technology, Harbin, China (e-mail: jinxinhit@hit.edu.cn, lmt131313@163.com, 1170910444@qq.com).

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Cite: Xin Jin, Mengting Li, and Tianxi Jin, "Research on the Conducting Effect of Monetary Policy on Stock Market Based on Investor Sentiment," International Journal of Trade, Economics and Finance vol.12, no.3, pp. 62-68, 2021.

Copyright © 2021 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

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