Google search volume index and investor attention in stock market: a systematic review

This study systematically reviewed the literature on using the Google Search Volume Index (GSVI) as a proxy variable for investor attention and stock market movements. We analyzed 56 academic studies published between 2010 and 2021 using the Web of Sciences and ScienceDirect databases. The articles...

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Bibliographic Details
Published in:Financial innovation (Heidelberg) 2024-07, Vol.10 (1), p.70-29, Article 70
Main Authors: Ayala, María José, Gonzálvez-Gallego, Nicolás, Arteaga-Sánchez, Rocío
Format: Article
Language:English
Subjects:
Economics
Economics and Finance
Google Trends
GSVI
Investments
Investor attention
Investors
Macroeconomics/Monetary Economics//Financial Economics
Political Economy/Economic Systems
Review
Securities markets
Stock exchanges
Stock market forecasting
Volatility
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Summary:This study systematically reviewed the literature on using the Google Search Volume Index (GSVI) as a proxy variable for investor attention and stock market movements. We analyzed 56 academic studies published between 2010 and 2021 using the Web of Sciences and ScienceDirect databases. The articles were classified and synthesized based on the selection criteria for building the GSVI: keywords of the search term, market region, and frequency of the data sample. Next, we analyze the effect of returns, volatility, and trading volume on the financial variables. The main results can be summarized as follows. (1) The GSVI is positively related to volatility and trading volume regardless of the keyword, market region, or frequency used for the sample. Hence, increasing investor attention toward a specific financial term will increase volatility and trading volume. (2) The GSVI can improve forecasting models for stock market movements. To conclude, this study consolidates, for the first time, the research literature on GSVI, which is highly valuable for academic practitioners in the area.
ISSN:2199-4730
2199-4730
DOI:10.1186/s40854-023-00606-y