Associate Professor Xiaohang Ren, a researcher of the base, has a collaborative paper titled "Being an Emotionally Unaffected Investor: Evidence From Bitcoin" published in the important academic journal IEEE Transactions on Engineering Management.

IEEE Transactions on Engineering Management focuses on research on the management of R&D and engineering technology functions in industrial, government, and academic institutions, aiming to provide theoretical support for organizational decision-making and policy formulation.

Abstract: As one of the most prominent cryptocurrencies, Bitcoin has been at the forefront of a major revolution in the financial and technological sectors. This study utilizes data from social media to extract the emotional tendencies of investors in the Bitcoin market and analyze differences in investor behavior under various emotional features. We find that when investors exhibit reluctance (such as Sadness and Fear) to buy Bitcoin, it is the opportune moment to invest and achieve returns higher than expected. Conversely, when the emotional tone of investors becomes positive (such as Joy and Love), indicating a tendency to invest, we choose to avoid investing. Our research has also revealed that such emotional cues can assist in better predicting returns in the Bitcoin market. Analyzing market emotions contributes to a deeper understanding of market fluctuations and investor behavior. Our findings help stakeholders recognize the role of subjective emotions in the market and provide them with prudent investment advice: avoid relying excessively on the feelings of others, as this may trigger investment losses.

Keywords: Large Language Models, BERT, Machine Learning, Textual Analysis, Investor Behavior, Bitcoin, Return Predictio

Link: Being an Emotionally Unaffected Investor: Evidence From Bitcoin | IEEE Journals & Magazine | IEEE Xplore

Teacher profile

Xiaohang Ren is a Distinguished Associate Professor at the Business School, Central South University, an Elsevier China Highly Cited Researcher, and a Top 2% Scientist Worldwide. He mainly engages in research on energy finance, financial risk, and financial econometrics. He has published more than 100 papers in authoritative journals at home and abroad,including Journal of the American Statistical Association,Transportation Research Part A, Energy Economics, Quantitative Finance, Review of Quantitative Finance and Accounting, International Review of Financial Analysis, Technological Forecasting and Social Change, Business Strategy and the Environment, Pacific-Basin Finance Journal, Applied Energy, Resources Policy, Renewable & Sustainable Energy Reviews, Energy, Journal of Management Sciences in China (English Edition), Systems Engineering — Theory and Practice, and Chinese Journal of Management Science. Among these, more than 30 are ESI Hot Papers/Highly Cited Papers. He serves as Section Editor of Sustainable Communities (Taylor & Francis), Associate Editor of journals such as Humanities & Social Sciences Communications (the only humanities and social sciences journal under Nature), and Guest Editor of several SSCI journals including Climate Change Economics and Economic Change and Restructuring.