Arts & Humanities Journal

Title: The Effect of Investors' Optimism on the Price Bubble

Abstract:

The purpose of this research is to evaluate the impact of investors' optimism on the price bubble, and the number of transactions and Volume of transactions were considered as criteria for investors' optimism. Causal and simultaneous relationships, the number of transactions, Volume of transactions and price bubble have been investigated in this study. The results of the hypotheses show that the number of transactions has a negative impact on the price bubble, that is to say the price bubble decreases with the increase in the number of transactions. But, the Volume of transactions does not have any significant influence on the price bubble. In addition, the ratio of the book value to the market value has a negative impact on the price bubble, and the size of the company has a direct impact on the stock price bubble.