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Information or Noise? The Role of Investor Sentiment, Attention, and Analyst Coverage in Stock Price Synchronicity

Hajam Abid Bashir & Dilip Kumar

Journal of Emerging Market Finance2026https://doi.org/10.1177/09726527261416596article
AJG 2ABDC B
Weight
0.50

Abstract

We investigate the impact of stock-specific investor sentiment, investor attention, and analyst coverage on stock price synchronicity in the Indian market. We develop a stock-level investor sentiment index using nine sentiment proxies. The results show that investor sentiment has a negative impact on price synchronicity, supporting the notion that lower stock co-movement is associated with more noise rather than firm-specific information in the presence of stock-specific investor sentiment. Using the Google Search Volume Index as a measure of investor attention, we find that investor attention positively impacts the stock price synchronicity. Moreover, our findings reveal that the negative (positive) impact of investor sentiment (attention) on stock price synchronicity lessens (improves) the effect of analyst coverage on price synchronicity. JEL Codes: G02, G14, G12

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https://doi.org/https://doi.org/10.1177/09726527261416596

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@article{hajam2026,
  title        = {{Information or Noise? The Role of Investor Sentiment, Attention, and Analyst Coverage in Stock Price Synchronicity}},
  author       = {Hajam Abid Bashir & Dilip Kumar},
  journal      = {Journal of Emerging Market Finance},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1177/09726527261416596},
}

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Information or Noise? The Role of Investor Sentiment, Attention, and Analyst Coverage in Stock Price Synchronicity

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.