Research on the Relationship Between FinTech Attention and Its Sector Returns

Jiangjiao Duan; Jiqing Liu; Qian Chen

doi:doi:10.11648/j.ijefm.20200801.17

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Research on the Relationship Between FinTech Attention and Its Sector Returns

Jiangjiao Duan, Jiqing Liu, Qian Chen

Published in International Journal of Economics, Finance and Management Sciences (Volume 8, Issue 1)

Received: 14 April 2020 Published: 27 May 2020

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Abstract

With the development and application of Internet technology, investors usually use Internet search engine to investigate the corporation and related information before making investment decision. As a result, Internet search engine has become an indicator of investors’ attention. This paper uses FinTech Baidu index derived from Baidu public platform to measure investors' attention, as well as FinTech index from Shenzhen stock exchange, whose index code is 399699. SZ. The index data covers a date range from June 9, 2017 to June 30, 2019. Empirically, this paper discusses the impact of online attention on the stock returns of financial science and technology sector. A vector auto-regressive (VAR) model is built to reveal the correlation between Fintech investor attention and its sector returns. Furthermore, the granger causality, impulse response and variance decomposition are analyzed. Granger causality test result indicates that FinTech investor attention is the granger cause of the stock returns of Fintech sector, and conversely the stock returns of Fintech sector are not the cause of FinTech investor attention. That is, FinTech online attention has a certain impact on the stock returns of Fintech sector. Impulse response indicates that the impact of FinTech online attention is positive, but the effect lasts in a short term. The conclusions play an important role for investors to understand the hotspot attention on FinTech which is a new emerging market investment opportunity, and provide a general knowledge about the relation between Fintech attention and market returns.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 8, Issue 1)
DOI	10.11648/j.ijefm.20200801.17
Page(s)	57-62
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Investor Attention, Internet Search, FinTech, Index Return

References

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APA Style

Jiangjiao Duan, Jiqing Liu, Qian Chen. (2020). Research on the Relationship Between FinTech Attention and Its Sector Returns. International Journal of Economics, Finance and Management Sciences, 8(1), 57-62. https://doi.org/10.11648/j.ijefm.20200801.17

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ACS Style

Jiangjiao Duan; Jiqing Liu; Qian Chen. Research on the Relationship Between FinTech Attention and Its Sector Returns. Int. J. Econ. Finance Manag. Sci. 2020, 8(1), 57-62. doi: 10.11648/j.ijefm.20200801.17

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AMA Style

Jiangjiao Duan, Jiqing Liu, Qian Chen. Research on the Relationship Between FinTech Attention and Its Sector Returns. Int J Econ Finance Manag Sci. 2020;8(1):57-62. doi: 10.11648/j.ijefm.20200801.17

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@article{10.11648/j.ijefm.20200801.17,
  author = {Jiangjiao Duan and Jiqing Liu and Qian Chen},
  title = {Research on the Relationship Between FinTech Attention and Its Sector Returns},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {8},
  number = {1},
  pages = {57-62},
  doi = {10.11648/j.ijefm.20200801.17},
  url = {https://doi.org/10.11648/j.ijefm.20200801.17},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20200801.17},
  abstract = {With the development and application of Internet technology, investors usually use Internet search engine to investigate the corporation and related information before making investment decision. As a result, Internet search engine has become an indicator of investors’ attention. This paper uses FinTech Baidu index derived from Baidu public platform to measure investors' attention, as well as FinTech index from Shenzhen stock exchange, whose index code is 399699. SZ. The index data covers a date range from June 9, 2017 to June 30, 2019. Empirically, this paper discusses the impact of online attention on the stock returns of financial science and technology sector. A vector auto-regressive (VAR) model is built to reveal the correlation between Fintech investor attention and its sector returns. Furthermore, the granger causality, impulse response and variance decomposition are analyzed. Granger causality test result indicates that FinTech investor attention is the granger cause of the stock returns of Fintech sector, and conversely the stock returns of Fintech sector are not the cause of FinTech investor attention. That is, FinTech online attention has a certain impact on the stock returns of Fintech sector. Impulse response indicates that the impact of FinTech online attention is positive, but the effect lasts in a short term. The conclusions play an important role for investors to understand the hotspot attention on FinTech which is a new emerging market investment opportunity, and provide a general knowledge about the relation between Fintech attention and market returns.},
 year = {2020}
}

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TY - JOUR
T1 - Research on the Relationship Between FinTech Attention and Its Sector Returns
AU - Jiangjiao Duan
AU - Jiqing Liu
AU - Qian Chen
Y1 - 2020/05/27
PY - 2020
N1 - https://doi.org/10.11648/j.ijefm.20200801.17
DO - 10.11648/j.ijefm.20200801.17
T2 - International Journal of Economics, Finance and Management Sciences
JF - International Journal of Economics, Finance and Management Sciences
JO - International Journal of Economics, Finance and Management Sciences
SP - 57
EP - 62
PB - Science Publishing Group
SN - 2326-9561
UR - https://doi.org/10.11648/j.ijefm.20200801.17
AB - With the development and application of Internet technology, investors usually use Internet search engine to investigate the corporation and related information before making investment decision. As a result, Internet search engine has become an indicator of investors’ attention. This paper uses FinTech Baidu index derived from Baidu public platform to measure investors' attention, as well as FinTech index from Shenzhen stock exchange, whose index code is 399699. SZ. The index data covers a date range from June 9, 2017 to June 30, 2019. Empirically, this paper discusses the impact of online attention on the stock returns of financial science and technology sector. A vector auto-regressive (VAR) model is built to reveal the correlation between Fintech investor attention and its sector returns. Furthermore, the granger causality, impulse response and variance decomposition are analyzed. Granger causality test result indicates that FinTech investor attention is the granger cause of the stock returns of Fintech sector, and conversely the stock returns of Fintech sector are not the cause of FinTech investor attention. That is, FinTech online attention has a certain impact on the stock returns of Fintech sector. Impulse response indicates that the impact of FinTech online attention is positive, but the effect lasts in a short term. The conclusions play an important role for investors to understand the hotspot attention on FinTech which is a new emerging market investment opportunity, and provide a general knowledge about the relation between Fintech attention and market returns.
VL - 8
IS - 1
ER -

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Author Information

Jiangjiao Duan

Business School, University of Shanghai for Science and Technology, Shanghai, China
Jiqing Liu

Business School, University of Shanghai for Science and Technology, Shanghai, China
Qian Chen

Business School, University of Shanghai for Science and Technology, Shanghai, China

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APA Style

Jiangjiao Duan, Jiqing Liu, Qian Chen. (2020). Research on the Relationship Between FinTech Attention and Its Sector Returns. International Journal of Economics, Finance and Management Sciences, 8(1), 57-62. https://doi.org/10.11648/j.ijefm.20200801.17

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ACS Style

Jiangjiao Duan; Jiqing Liu; Qian Chen. Research on the Relationship Between FinTech Attention and Its Sector Returns. Int. J. Econ. Finance Manag. Sci. 2020, 8(1), 57-62. doi: 10.11648/j.ijefm.20200801.17

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AMA Style

Jiangjiao Duan, Jiqing Liu, Qian Chen. Research on the Relationship Between FinTech Attention and Its Sector Returns. Int J Econ Finance Manag Sci. 2020;8(1):57-62. doi: 10.11648/j.ijefm.20200801.17

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@article{10.11648/j.ijefm.20200801.17,
  author = {Jiangjiao Duan and Jiqing Liu and Qian Chen},
  title = {Research on the Relationship Between FinTech Attention and Its Sector Returns},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {8},
  number = {1},
  pages = {57-62},
  doi = {10.11648/j.ijefm.20200801.17},
  url = {https://doi.org/10.11648/j.ijefm.20200801.17},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20200801.17},
  abstract = {With the development and application of Internet technology, investors usually use Internet search engine to investigate the corporation and related information before making investment decision. As a result, Internet search engine has become an indicator of investors’ attention. This paper uses FinTech Baidu index derived from Baidu public platform to measure investors' attention, as well as FinTech index from Shenzhen stock exchange, whose index code is 399699. SZ. The index data covers a date range from June 9, 2017 to June 30, 2019. Empirically, this paper discusses the impact of online attention on the stock returns of financial science and technology sector. A vector auto-regressive (VAR) model is built to reveal the correlation between Fintech investor attention and its sector returns. Furthermore, the granger causality, impulse response and variance decomposition are analyzed. Granger causality test result indicates that FinTech investor attention is the granger cause of the stock returns of Fintech sector, and conversely the stock returns of Fintech sector are not the cause of FinTech investor attention. That is, FinTech online attention has a certain impact on the stock returns of Fintech sector. Impulse response indicates that the impact of FinTech online attention is positive, but the effect lasts in a short term. The conclusions play an important role for investors to understand the hotspot attention on FinTech which is a new emerging market investment opportunity, and provide a general knowledge about the relation between Fintech attention and market returns.},
 year = {2020}
}

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