Consumer confidence indices and stock markets’ meltdowns

Ferrer, Elena, Salaber, Julie and Zalewska, Ania 2016. Consumer confidence indices and stock markets’ meltdowns. European Journal of Finance. 22 (3), pp. 195-220. doi:10.1080/1351847X.2014.963634

TitleConsumer confidence indices and stock markets’ meltdowns
AuthorsFerrer, Elena, Salaber, Julie and Zalewska, Ania
Abstract

Consumer confidence indices (CCIs) are a closely monitored barometer of countries’ economic health and an informative forecasting tool. Using European and US data, we provide a case study of the two recent stock market meltdowns (the post-dotcom bubble correction of 2000–2002 and the 2007–2009 decline at the beginning of the financial crisis) to contribute to the discussion on their appropriateness as proxies for stock markets’ investor sentiment. Investor sentiment should positively covary with stock market movements (DeLong, Shleifer, Summers, and Waldmann 1990); however, we find that the CCI–stock market relationship is not universally positive.We also do not find support for the information effect documented in the previous literature, but identify a more subtle relationship between consumer expectations about future household finances and stock market fluctuations.

Keywordsconsumer confidence; investor sentiment; dotcom bubble; financial crisis; behavioural finance
JournalEuropean Journal of Finance
Journal citation22 (3), pp. 195-220
ISSN1351-847X
Year2016
PublisherTaylor & Francis
Accepted author manuscriptFerrer_et_al_2016_final_author_version.pdf
Digital Object Identifier (DOI)doi:10.1080/1351847X.2014.963634
Publication dates
Published2016
Published09 Oct 2014

Related outputs

The Effects of Mergers and Acquisitions on Acquiring Banks’ Contribution to Systemic Risk
van Dellen, S., Benamraoui, A., Ngo, H. and Salaber, Julie 2019. The Effects of Mergers and Acquisitions on Acquiring Banks’ Contribution to Systemic Risk. 27th Edition of International Rome Conference on Money, Banking & Finance. Rome, Italy 10 - 11 Dec 2018

The effects of mergers and acquisitions on acquiring banks' contribution to systemic risk
Van Dellen, S., Benamraoui, A., Ngo, H. and Salaber, Julie 2018. The effects of mergers and acquisitions on acquiring banks' contribution to systemic risk. 11th Edition of International Risk Management Conference (Risk Society). Paris, France 07 - 08 Jun 2018

Cross-border arbitrage and acquirers’ returns in the Eurozone crisis
Salaber, Julie and Rao-Nicholson, Rekha 2018. Cross-border arbitrage and acquirers’ returns in the Eurozone crisis. Journal of Economics and Business. 95, pp. 87-102. doi:10.1016/j.jeconbus.2017.05.001

The recent development and performance of ethical investments
Gillet, Philippe and Salaber-Ayton, Julie 2017. The recent development and performance of ethical investments. in: Lehner, O. (ed.) Routledge Handbook of Social and Sustainable Finance Routledge. pp. 530

Euphoria in financial markets: how Indian companies generate value in their cross-border acquisitions
Rao-Nicholson, Rekha and Salaber, Julie 2016. Euphoria in financial markets: how Indian companies generate value in their cross-border acquisitions. Research in International Business and Finance. 38, pp. 494-508. doi:10.1016/j.ribaf.2016.07.022

Long-term performance of mergers and acquisitions in ASEAN countries
Salaber, Julie, Rao-Nicholson, Rekha and Cao, Tuan H. 2016. Long-term performance of mergers and acquisitions in ASEAN countries. Research in International Business and Finance. 36, p. 373–387. doi:10.1016/j.ribaf.2015.09.024

Impact of the financial crisis on cross-border mergers and acquisitions and concentration in the global banking industry
Salaber, Julie and Rao-Nicholson, Rekha 2016. Impact of the financial crisis on cross-border mergers and acquisitions and concentration in the global banking industry. Thunderbird International Business Review. 58 (2), pp. 161-173. doi:10.1002/tie.21731

Impact of the financial crisis on banking acquisitions: a look at shareholder wealth
Rao-Nicholson, Rekha and Salaber, Julie 2015. Impact of the financial crisis on banking acquisitions: a look at shareholder wealth. International Journal of the Economics of Business . 22 (1), pp. 87-117. doi:10.1080/13571516.2014.982901

Impact of the Financial Crisis on the Performance of European Acquisitions
Rao Nicholson, Rekha and Salaber, Julie 2014. Impact of the Financial Crisis on the Performance of European Acquisitions. in: Temouri, Yama and Jones, Chris (ed.) International Business and Institutions after the Financial Crisis Palgrave Macmillan. pp. 73-92

Facilitating student engagement and collaboration in a large postgraduate course using wiki-based activities
Salaber, Julie 2014. Facilitating student engagement and collaboration in a large postgraduate course using wiki-based activities. The International Journal of Management Education. 12 (2), pp. 115-126. doi:10.1016/j.ijme.2014.03.006

Religion and returns in Europe
Salaber, Julie 2013. Religion and returns in Europe. European Journal of Political Economy. 32, p. 149–160. doi:10.1016/j.ejpoleco.2013.07.002

The motives and performance of cross-border acquirers from emerging economies: Comparison between Chinese and Indian firms
Rao-Nicholson, Rekha and Salaber, Julie 2013. The motives and performance of cross-border acquirers from emerging economies: Comparison between Chinese and Indian firms. International Business Review. 22 (6), p. 963–980. doi:10.1016/j.ibusrev.2013.02.003

Permalink - https://westminsterresearch.westminster.ac.uk/item/996y7/consumer-confidence-indices-and-stock-markets-meltdowns


Share this
Tweet
Email