Review
Open access
Sep 2026
Text‐Based Investor Sentiment in Asset Pricing: A Survey of Belief Formation Mechanisms
Text‐based investor sentiment has become a widely used explanatory variable in asset pricing, yet its economic interpretation remains unsettled. A large empirical literature documents that sentiment measures derived from news, corporate disclosures, and social media predict short‐horizon returns, affect volatility, a...
Sougata Banerjee, D. Aggarwal
· Journal of economic surveys... · 0 citations