| Summary: | 碩士 === 國立中山大學 === 財務管理學系研究所 === 103 === Past literature confirmed that people tend to react more drastically to negative news relative to positive ones. The “negativity effect” is also found in security market: when negative news announced, investors’ stock selling decisions lead to significant declines of stock returns. According to availability heuristic, investors rely upon information that is readily available, i.e., most salient in their minds when making decisions. Therefore, as negative news announced, investors tend to sell stocks which are most salient to them.
This study examines whether the salience of customer satisfaction intensifies negativity effect of stock returns in relation to consumer sentiment. When customers are satisfied with a firm, the firm is more likely to leave a good impression in the minds of customers. The stocks with higher customer satisfaction are thus more likely to be sold after negative news announced, leading to a more significant negativity effect. Our findings indicate that the negativity effect of stock returns in relation to consumer sentiment is most evident in stocks with higher customer satisfaction, i.e., salient stocks. We posit that the availability heuristic may account for the negativity effect on salient stocks.
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