Impact of online public opinion regarding the Japanese nuclear wastewater incident on stock market based on the SOR model

Abstract

The exposure of the Japanese nuclear wastewater incident has shaped online public opinion and has also caused a certain impact on stocks in aquaculture and feed industries. In order to explore the impact of network public opinion caused by public emergencies on relevant stocks, this paper uses the stimulus organism response(SOR) model to construct a framework model of the impact path of network public opinion on the financial stock market, and it uses emotional analysis, LDA and grounded theory methods to conduct empirical analysis. The study draws a new conclusion about the impact of online public opinion on the performance of relevant stocks in the context of the nuclear waste water incident in Japan. The positive change of media sentiment will lead to the decline of stock returns and the increase of volatility. The positive change of public sentiment will lead to the decline of stock returns in the current period and the increase of stock returns in the lag period. At the same time, we have proved that media attention, public opinion theme and prospect theory value have certain influences on stock performance in the context of the Japanese nuclear wastewater incident. The conclusion shows that after the public emergency, the government and investors need to pay attention to the changes of network public opinion caused by the event, so as to avoid the possible stock market risks.

Keywords

• emergency
• online public opinion
• prospect theory
• stock market
• sor model