The Effect of Bitcoin and Ethereum Currency Development on Stock Returns and Stock Market Volatility: An Analysis of Investors' Emotions
The Effect of Bitcoin and Ethereum Currency Development on Stock Returns and Stock Market Volatility: An Analysis of Investors' Emotions
Subject Areas : Financial Knowledge of Securities Analysis
Tayebeh Darvishpoor
1
,
Alireza Jorjor zadeh
2
,
Nader Khedri
3
,
Houshang Amiri
4
1 - Department of accounting Ahvaz Branch, Islamic Aazad University, Ahvaz, Iran
2 - Department of Economics , Ahvaz Branch, Islamic Aazad University, Ahvaz, Iran(Corresponding Author )
3 - Assistant Professor, Department of Accounting, Abadan Branch, Islamic Azad University, Abadan, Iran
4 - Assistant Professor of Accounting, Abadan Branch, Islamic Azad University, Abadan, Iran
Keywords: Bitcoin, Ethereum, Investor Sentiment, Cryptocurrencies,
Abstract :
The Purpose of this research is the effect of ethereum digital currency development on stock returns and stock market volatility by an analysis of investors' emotions. In order to carry out this quantitative research, 235 companies from the companies accepted in the Tehran Stock Exchange were selected using the systematic elimination method, and the data required by these companies as well as the data related to the indices of the cryptocurrency market were extracted from April 2015 to September 2014. The hypotheses of the research have been tested using multivariate regression models and E-Garch conditional variance model using Eviews software. The findings have shown that the development of cryptocurrencies has a significant and negative impact on stock returns, and the tendency towards the cryptocurrency market has led to a decrease in stock returns, and investors' feelings have played an effective role in these relationships. On the other hand, investors' attention to cryptocurrencies has moderated the fluctuations of the Iranian stock market during the studied period. Therefore, according to the alignment of the results obtained using the used models, it can be seen that financial markets with advanced technologies can be considered as a warning for traditional markets on the one hand, and on the other hand, the existence of multiple markets for investment can prevent the fluctuation of each market. Reduce Therefore, the multiplicity of asset markets in the economy seems important and important for investing and maintaining peace in these markets.
