Antecedents and Precedents of Governance on Retail Investors' Sentiments In Indian Perspective

Abstract

Investor sentiment is seen as an approach to measure market sentiment. Investor sentiment can be defined as the feeling or tone of a market while Governance is the action or manner of governing a state. Investors Sentiments are affected by various governance factors viz. political stability, governance orientation, regulatory framework, price-sensitive information content (media), and investors’ confidence. In recent times there have been instances where investors’ sentiments seem to be driven by governance. Thus, it is important that government keeps a strong focus on driving investors’ sentiments. Financial planning of investors is affected by sentiments which are driven by governance.