Verma, Rahul; Baklaci, Hasan; Soydemir, Gokce - In: Applied Financial Economics 18 (2008) 16, pp. 1303-1317
We examine the relative effects of rational and irrational investor sentiments on Dow Jones Industrial Average and S&P500 returns. The impact of rational sentiments on stock market returns is found to be greater than that of irrational sentiments. There are immediate positive responses of stock...