The Impact of Psychological Factors on Luxury Stock Prices: Empirical Analysis of Paris Market

Yuanyuan Gan, Xiaoyue Liang, Enshuo Yan

2025

Abstract

With the luxury market's rapid growth and increasing integration into global financial systems, understanding its stock dynamics has become critical for investors and policymakers. This study focuses on the luxury stock market, examining the impact of psychological factors on luxury stock prices from the perspective of behavioural economics. Based on empirical analysis and qualitative event studies, we analyse data from six luxury companies (e.g., LVMH, Hermès, Dior) listed on the Paris open market from January 2020 to December 2024. The research investigates correlations among market volatility (VIX Index), investor sentiment, and economic policy uncertainty. Key findings reveal a significant negative correlation between market volatility and stock prices of certain brands, a positive influence of investor sentiment on most stock valuations, and heightened irrational price fluctuations due to economic policy uncertainty. These results underscore the importance of psychological factors in luxury stock pricing, provides theoretical support for investment strategies, and advocate for future research integrating social media sentiment data and multi-factor models.

Paper Citation

in Harvard Style

Gan Y., Liang X. and Yan E. (2025). The Impact of Psychological Factors on Luxury Stock Prices: Empirical Analysis of Paris Market. In Proceedings of the 2nd International Conference on E-commerce and Modern Logistics - Volume 1: ICEML; ISBN 978-989-758-775-7, SciTePress, pages 38-43. DOI: 10.5220/0013832300004719

in Bibtex Style

@conference{iceml25,
author={Yuanyuan Gan and Xiaoyue Liang and Enshuo Yan},
title={The Impact of Psychological Factors on Luxury Stock Prices: Empirical Analysis of Paris Market},
booktitle={Proceedings of the 2nd International Conference on E-commerce and Modern Logistics - Volume 1: ICEML},
year={2025},
pages={38-43},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0013832300004719},
isbn={978-989-758-775-7},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on E-commerce and Modern Logistics - Volume 1: ICEML
TI - The Impact of Psychological Factors on Luxury Stock Prices: Empirical Analysis of Paris Market
SN - 978-989-758-775-7
AU - Gan Y.
AU - Liang X.
AU - Yan E.
PY - 2025
SP - 38
EP - 43
DO - 10.5220/0013832300004719
PB - SciTePress