Role of Sentiment in Households’ Financial Decision Making during the COVID-19 Pandemic: Survey from Empirical Research
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Keywords:
COVID-19, Financial Decision Making of Households, Household Sentiment, Investment, Investor SentimentAbstract
This paper investigates the relationship between household sentiment and financial decision
making during the COVID-19 pandemic. Although the COVID-19 pandemic has been overcome globally,
the concept is very underdeveloped in the empirical literature. This paper therefore addresses this concern
by attempting to highlight areas of contention in research in this sphere of household financial decision
making. Based on several empirical studies dating back to the COVID-19 pandemic and organised
chronologically, we come to formulate a number of areas that should be targeted to advance further
research. These open areas include (a) the definition of sentiment, (b) the way sentiment is measured, (c)
the distinction between professional investment decision making and household investment decision
making, and (d) the distinction between consumer behaviour and household investment behaviour and (e)
the lack of empirical studies addressing the impact of household sentiment on their financial decision
making during the COVID-19 pandemic. Continued research in this area of finance is therefore also
essential for understanding and learning for future potential pandemics.
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