Sentiment, growth and value investments: Evidence from Korean Stock Listings

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In this paper, the authors relate the investment performances of value and growth stocks to investor sentiment. The authors' research objectives are twofold: first, the authors verify positive long-run abnormal returns of value investing under pessimistic investor sentiment. Second, the authors experiment a horse race between the fundamental and behavioral views of growth stock returns. Using a thirteen-year sample of Korea Exchange (KRX)-listed firms, the authors find a positive relation between the value premium and stock market sentiment: while growth investing can be relatively dominant in a pessimistic cycle under depressed investor sentiment, value strategy can outperform in an optimistic period. As a result, the authors confirm the usefulness of style investing adapted to investor psychology.

Original languageEnglish
Pages (from-to)142-148
Number of pages7
JournalInvestment Management and Financial Innovations
Issue number3
StatePublished - 2015

Bibliographical note

Publisher Copyright:
© Jinho Byun, Hyung-Suk Choi, Paul Moon Sub Choi, 2015.


  • Anomalies
  • Behavioral finance
  • Growth investment
  • Investor sentiment
  • Long-run performance
  • Value investment


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