Information Diffusion in Stock Markets? A Soft Computing Perspective

摘要

Recently, Information diffusion is one of the emerging areas of studies. There have many areas viz. physics (particle diffusion), biology, chemistry, sociology, finance and economics (in the context of diffusion of ideas, people and of the price values), where the phenomenon of information diffusion has been studied and applied. There have been numerous studies undertaken in order to understand, the role of soft computing techniques in relation to information diffusion in the Stock Markets. The studies have ranged from understanding the dynamics of stock pricing, forecasting accuracy and the Co-movements in the stock prices. In this process, the role of soft computing tools and techniques has gained a paramount position. In this light, this review paper provides with the analytical review of the recently published research papers by reputed journals and institutions, in the area of information diffusion, in the emerging markets and the role of soft computing tools and techniques for the same. This paper provides a descriptive analysis of the factors which influence the information transmission in the Emerging markets. The research methodology used for analysis is descriptive for the paper. The paper then provides a review, and discusses the role of information diffusion in stock markets of the Emerging countries. Various studies have been undertaken to understand factors responsible for transmission of information into the emerging markets. In this aspect, and the major findings of the reviewed paper are presented. Further the paper reviews the application of soft computing techniques in forecasting the stock price moments in emerging markets such as India. At the end, an outcome of the reviewed research papers is presented, which provides the insight in terms of the use of soft computing techniques for the study of stock price movements and its forecasting in Indian stock market. JEL classification: C8, C45, D84, G14, N25, O57.