Quality of political information and return predictability: Evidence from investor sentiment and risk aversion
研究了政治信息质量如何影响投资者情绪和风险厌恶对股票收益的预测能力，发现低质量信息削弱情绪预测力但增强风险厌恶预测力，对金融从业者和研究者有参考价值。
In this study, we examine how political information quality influences the predictive effects of investor sentiment and risk aversion on stock market returns. Our analysis reveals that low-quality information significantly diminishes the predictive power of investor sentiment while amplifying that of risk aversion. Moreover, incorporating a proxy for political information quality into predictive regression models significantly enhances their explanatory power. Overall, our results provide compelling evidence that the quality of information plays a critical role in shaping the dynamics of financial markets.