Words that Matter: The Impact of Negative Words on News Sentiment and Stock Market Index

Fuente: arXiv
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Autore principale: Kim, Wonseong
Natura: Preprint
Pubblicazione: 2023
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author Kim, Wonseong
author_facet Kim, Wonseong
contents This study investigates the impact of negative words on sentiment analysis and its effect on the South Korean stock market index, KOSPI200. The research analyzes a dataset of 45,723 South Korean daily economic news articles using Word2Vec, cosine similarity, and an expanded lexicon. The findings suggest that incorporating negative words significantly increases sentiment scores' negativity in news titles, which can affect the stock market index. The study reveals that an augmented sentiment lexicon (Sent1000), including the top 1,000 negative words with high cosine similarity to 'Crisis,' more effectively captures the impact of news sentiment on the stock market index than the original sentiment lexicon (Sent0). The results underscore the importance of considering negative nuances and context when analyzing news content and its potential impact on market dynamics and public opinion.
format Preprint
id arxiv_https___arxiv_org_abs_2304_00468
institution arXiv
publishDate 2023
record_format arxiv
spellingShingle Words that Matter: The Impact of Negative Words on News Sentiment and Stock Market Index
Kim, Wonseong
Computation and Language
This study investigates the impact of negative words on sentiment analysis and its effect on the South Korean stock market index, KOSPI200. The research analyzes a dataset of 45,723 South Korean daily economic news articles using Word2Vec, cosine similarity, and an expanded lexicon. The findings suggest that incorporating negative words significantly increases sentiment scores' negativity in news titles, which can affect the stock market index. The study reveals that an augmented sentiment lexicon (Sent1000), including the top 1,000 negative words with high cosine similarity to 'Crisis,' more effectively captures the impact of news sentiment on the stock market index than the original sentiment lexicon (Sent0). The results underscore the importance of considering negative nuances and context when analyzing news content and its potential impact on market dynamics and public opinion.
title Words that Matter: The Impact of Negative Words on News Sentiment and Stock Market Index
topic Computation and Language
url https://arxiv.org/abs/2304.00468