Influence of psychological expectation correction on the return rate of transnational investment

Abstract

Drawing on behavioral finance theory, this paper explores the mutual influence between investor sentiment and the return rate of transitional investment Since the investor sentiment can be measured by the transaction amount of the transnational investment market, the author derived the psychological expectation by the fluctuation theorem, rather than investor survey On this basis, a model was established to disclose the interaction between investors psychological expectation correction and the return rate of transnational investment return. The results show that investors psychological expectation has a significant causal relationship with the return rate of transnational investment; any change to one of the two factors will induce a variation in the other factor. The research results enrich the theoretical system of behavioral finance, reveal the psychological features of investors, and provide guidance for market regulation of transnational investment.