A Study of Factors Influencing Investor Expectations in the Capital Market

School of Economics and Finance, Guangdong University of Foreign Studies, Guangzhou, 510006, China

^* Corresponding author: 20221704951@gdufs.edu.cn

Abstract

This paper examines three key factors that influence investor expectations: company announcements, market seasonality and environment, and social and corporate governance (ESG). It shows that these factors individually and jointly have a significant impact on investor behavior and market dynamics. Corporate announcements serve as an important source of information that directly influences investor behavior and expectations, while market seasonality demonstrates cyclical patterns in investor expectations. Meanwhile, ESG investments reflect investors’ concerns about corporate performance in environmental protection, social responsibility, and governance. While research on these factors has been more extensive, further research is needed to combine these factors with other market dynamics and to quantify their impact on long-term investment decisions and market trends. This study aims to provide a comprehensive understanding of the diverse factors that influence investor expectations by analyzing these factors in an integrated manner. This not only provides insights for investors and market analysts, but also provides important information for policymakers in guiding the market and formulating policies.