Investor Sentiment Impacts Stock Prices During Financial Crisis in Greece.
The article examines how the financial crisis in Greece affected the banking sector by studying stock prices and trading volume. It questions the Efficient Market Hypothesis, which says asset prices should only react to new information, not psychological factors. The researchers found evidence suggesting that during the crisis, stock prices were influenced by investors' psychology, not just negative news. The study focuses on the banking sector because it is important in Greece and attracts many institutional investors. The findings challenge the idea that asset prices are always rational and efficient.