Google Trends Analysis on Investor Sentiment on Stock Return Jakarta Islamic Index

Kurniawati Meylianingrum; Kholilah Kholilah; Tiara Juliana Jaya

doi:10.17977/um042v28i1p14-20

Google Trends Analysis on Investor Sentiment on Stock Return Jakarta Islamic Index

Kurniawati Meylianingrum, Kholilah Kholilah, Tiara Juliana Jaya

Abstract

Investor sentiment arises when there is an event or event that affects people's lives such as pandemics, terrorism, wars, and economic conditions. The Covid 19 pandemic is an outbreak that has emerged and its spread is very fast around the world, so it requires people to stay at home to reduce the rate of transmission. This research was conducted to find out the positive and negative sentiment of investors towards the return of Jakarta Islamic Index shares. Positive and negative sentiment is induced from medical terms that appear on the google trends page. The method carried out is to use quantitative with a descriptive approach. The results obtained in this study are that investor sentiment, both positive and negative, partially and simultaneously has a significant positive effect on stock returns on the Jakarta Islamic Index. This shows that if there is a trust issue that is happening such as covid-19, war, data breaches, it can make investor sentiment change in choosing companies that issue stocks with data evidence taken from Google Trends to analyze the popularity of queries with keywords entered into search engines.

Full Text:

PDF

References

Alfira, N., Fasa, M. I., & Suharto, S. (2021). Pengaruh Covid-19 terhadap Indeks Harga Saham Gabungan (IHSG) dan Nilai Tukar Rupiah. Al-Kharaj : Jurnal Ekonomi, Keuangan & Bisnis Syariah, 3(2), 313–323. https://doi.org/10.47467/alkharaj.v3i2.356

Anastasiou, D., Ballis, A., & Drakos, K. (2022). Constructing a positive sentiment index for COVID-19: Evidence from G20 stock markets. International Review of Financial Analysis, 81(October 2021), 102111. https://doi.org/10.1016/j.irfa.2022.102111

Baker, M., & Wurgler, J. (2007). Investor sentiment in the stock market. Journal of Economic Perspectives, 21(2), 129–151. https://doi.org/10.1257/jep.21.2.129

Barberis, N., Shleifer, A., & Vishny, R. (1998). A model of investor sentiment. Journal of Financial Economics, 49(3), 307–343. https://doi.org/10.1016/s0304-405x(98)00027-0

Blajer-Gołębiewska, A., Wach, D., & Kos, M. (2018). Financial risk information avoidance. Economic Research-Ekonomska Istrazivanja , 31(1), 521–536. https://doi.org/10.1080/1331677X.2018.1439396

Blazquez, D., & Domenech, J. (2018). Big Data sources and methods for social and economic analyses. Technological Forecasting and Social Change, 130(July), 99–113. https://doi.org/10.1016/j.techfore.2017.07.027

Ding, D., Guan, C., Chan, C. M. L., & Liu, W. (2020). Building stock market resilience through digital transformation: using Google trends to analyze the impact of COVID-19 pandemic. Frontiers of Business Research in China, 14(1). https://doi.org/10.1186/s11782-020-00089-z

Fadhel, R., Adrianto, F., & Alfarisi, M. F. (2022). Analisis Sentimen Investor terhadap kinerja saham syariah di Indonesia selama masa pandemi Covid-19. Owner, 6(4), 3579–3591. https://doi.org/10.33395/owner.v6i4.1183

Fadhillah, & Faisal. (2017). Pengaruh Non-Linear Sentimen Investor Terhadap Return Pada Perusahaan Manufaktur Di Bursa Efek Indonesia Tahun 2014-2015 Fadhlillah 1 , Faisal 2 1,2). Jurnal Ilmiah Mahasiswa Ekonomi Manajemen, 2(3), 246–259.

Firdaus, A. P. (2021). Analisis Pengaruh Sentimen Investor Terhadap Return Saham Sektoral BEI Pada Masa Pandemi COVID-19. Jurnal Khazanah Intelektual, 5(2), 1107–1127. https://doi.org/10.37250/newkiki.v5i2.121

Hidayat, I. N., Maulana, I., & Arif, M. (2021). Long term Covid-19 terhadap Pasar Saham di Indonesia. POINT: Jurnal Ekonomi Dan Manajemen, 3(1), 1–9. https://doi.org/10.46918/point.v3i1.834

Huang, M. Y., Rojas, R. R., & Convery, P. D. (2020). Forecasting stock market movements using Google Trend searches. Empirical Economics, 59(6), 2821–2839. https://doi.org/10.1007/s00181-019-01725-1

Jiang, B., Zhu, H., Zhang, J., Yan, C., & Shen, R. (2021). Investor Sentiment and Stock Returns During the COVID-19 Pandemic. Frontiers in Psychology, 12, 1–8. https://doi.org/10.3389/fpsyg.2021.708537

Kholilah, K., Tojibussabirin, M., & Kurniawati, E. T. (2023). Indonesian Covid-19 Pandemic Trends: Sentiment Analysis and Stock Return Connectedness (Vol. 2). Atlantis Press SARL. https://doi.org/10.2991/978-2-38476-002-2_55

Kusuma, A. H., & Setiyono, T. A. (2021). Pengaruh Covid-19 Terhadap Ihsg Dengan Nilai Tukar Rupiah Sebagai Variabel Mediasi. JRAK (Jurnal Riset Akuntansi Dan Bisnis), 7(2), 85–95. https://doi.org/10.38204/jrak.v7i2.591

Mellon, J. (2014). Internet Search Data and Issue Salience: The Properties of Google Trends as a Measure of Issue Salience. Journal of Elections, Public Opinion and Parties, 24(1), 45–72. https://doi.org/10.1080/17457289.2013.846346

Pertiwi, D., Kusumawardhani, A., & Basana, S. R. (2022). Investor Sentiment And Stock Returns During Covid-19 Pandemic In Indonesia. https://doi.org/10.3389/fpsyg.2021.708537

Preis, T., Moat, H. S., & Eugene Stanley, H. (2013). Quantifying trading behavior in financial markets using google trends. Scientific Reports, 3, 1–6. https://doi.org/10.1038/srep01684

Purnaningrum, E., & Ariqoh, I. (2019). Google Trends Analytics Dalam Bidang Pariwisata. Majalah Ekonomi, 24(2), 232–243. https://doi.org/10.36456/majeko.vol24.no2.a2069

Romadhon, M. R., & Ardiansyah, M. (2022). Analisis Pasar Modal Syariah 5 Negara Asean di Era Pandemi COVID 19. E-Journal Ekonomi Bisnis Dan Akuntansi, 9(1), 36. https://doi.org/10.19184/ejeba.v9i1.30412

Salsabila, U. H., Habiba, I. S., Amanah, I. L., Istiqomah, N. A., & Difany, S. (2020). Pemanfaatan Aplikasi Quizizz Sebagai Media Pembelajaran Ditengah Pandemi Pada Siswa SMA. Jurnal Ilmiah Ilmu Terapan Universitas Jambi|JIITUJ|, 4(2), 163–173. https://doi.org/10.22437/jiituj.v4i2.11605

Shah, S. F., Albaity, M., & Rahman, M. (2023). Banks’ return reaction to freedom, sentiment, and uncertainty. Journal of Open Innovation: Technology, Market, and Complexity, 9(1), 100015. https://doi.org/10.1016/j.joitmc.2023.100015

Shu, H. (2016). Big data analytics: six techniques. Geo-Spatial Information Science, 19(2), 119–128. https://doi.org/10.1080/10095020.2016.1182307

Tambunan, D. (2020). Investasi Saham di Masa Pandemi COVID-19. Widya Cipta: Jurnal Sekretari Dan Manajemen, 4(2), 117–123. https://doi.org/10.31294/widyacipta.v4i2.8564

Widjayanti, A., Kamayanti, A., & Yuliarini, S. (2022). Peramalan Indeks Harga Saham Melalui Trending Topic Youtube Pada Kondisi Great Lockdown. Jurnal Riset Dan Aplikasi: Akuntansi Dan Manajemen, 5(3), 297–306. https://doi.org/10.33795/jraam.v5i3.004

DOI: http://dx.doi.org/10.17977/um042v28i1p14-20