Google search intensity and its relationship with returns and trading volume of Japanese stocks

Fumiko Takeda, Takumi Wakao

Research output: Contribution to journalArticlepeer-review

84 Citations (Scopus)

Abstract

This study examines the relationship between online search intensity and stock-trading behavior in the Japanese market. The search intensity is measured by the search volume of company names on Google. Our sample consists of 189 Japanese stocks searched between 2008 and 2011. We find correlations with search intensity that are strongly positive for trading volume and weakly positive for stock returns. Our results are consistent with the notion that the increase in search activity is associated with increases in trading activity, but the probability that this increase in trading raises stock prices is not high.

Original languageEnglish
Pages (from-to)1-18
Number of pages18
JournalPacific Basin Finance Journal
Volume27
Issue number1
DOIs
Publication statusPublished - 2014 Apr
Externally publishedYes

Keywords

  • Attention: stock price
  • Behavioral finance
  • G12
  • G14
  • Investor sentiment
  • Trading volume

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

Fingerprint

Dive into the research topics of 'Google search intensity and its relationship with returns and trading volume of Japanese stocks'. Together they form a unique fingerprint.

Cite this