The concept of market sentiment refers to the investors attitude towards the expected development of prices in a market. The bullish market sentiment reflects the situation in which prices are either rising or are expected to rise, whereas the declining prices indicate bearish market sentiment. Danso et al. define market sentiment as a set of a decisionmaker’s expectations on events related to a business’s performance and note that it affects firm investment. Indeed, investors feelings on the financial market influence signal caused by price and volume, which, in turn, directly impact investment.
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