The effects of news sentiment on stock returns based on Computing Methods

This article systematically reviews relevant literature on news sentiment research, and studies the relevance of news sentiment to stock returns from the aspects of news sentiment research and news text sentiment. This paper sets up a research model to explore the relationship between news sentiment and the stock market. The research shows that news sentiment can affect the stock return by affecting investor sentiment and trading behavior. But the relationship between sentiment and excess returns is not very significant. There are many other factors that affect stock returns, such as interest rate policies, emergencies, and economic factors.