Research on investor sentiment stock pricing model based on the insurance industry

摘要

In the market of certainty, the problem of asset pricing is simple; while there is too much uncertainty in financial market. Under the condition of uncertainty, investors’ attitude to risk and investors’ psychological emotional impact on asset pricing must be taken into consideration, meanwhile, the effect of time on capital asset pricing also need to be taken into consideration. In this paper, from April 2011 to December 2013, all stock trading data of China life insurance company are taken as samples, to investigate the relationship between the closing prices of stocks and psychological sentiment of shareholders, we use the least squares method to build the model and to analyze the model, the psychological sentiment of shareholders through dividend yield, turnover rate, PE ratio (price earning ratio), yields five index systems to quantify, the result is that the sentiment of investors influences the closing prices of the stocks.