University of Oulu

Relationship between Google search volume and stock returns in Finland

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Author: Juvonen, Sami1
Organizations: 1University of Oulu, Oulu Business School, Department of Finance, Finance
Format: ebook
Version: published version
Access: open
Online Access: PDF Full Text (PDF, 1.5 MB)
Pages: 54
Persistent link:
Language: English
Published: Oulu : S. Juvonen, 2023
Publish Date: 2023-06-05
Thesis type: Master's thesis
Tutor: Sahlström, Petri
Reviewer: Sahlström, Petri
Kallunki, Juha-Pekka


Can investor recognition or attention affect stock prices? The attention theory suggests that investors are net buyers of attention-grabbing companies. However, finding a fitting proxy for attention is in a key position to when studying the attention theory empirically.

The aim of this thesis is to use Google search volume as a proxy for investor attention and study whether there is a relationship between investor attention and stock returns in Finland. The thesis uses weekly data from 2018 to 2022. To study the investor attention, Fama-French three-factor model with an additional Google search volume -factor (GSV-factor) is used in stock-based OLS-regressions. Multiple models are built with different lags and different adjustments on GSV-factor data. Two different datasets for the Google search volume are tested to determine the better keyword for empirical analysis. Thesis uses companies from OMXH25 as stock data for the regressions.

The findings of this thesis suggest that there is no meaningful connection between Google search volume and stock returns in Finland. Individual stocks have statistically significant regression results in different models, but the overall effect of attention on stock returns is meaningless. Furthermore, the results suggest that GSV-factor has no predictive power in Finland. Since GSV-factor is a proxy for attention, the findings show that attention has no effect on the most traded stocks in Helsinki stock exchange.

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Copyright information: © Sami Juvonen, 2023. Except otherwise noted, the reuse of this document is authorised under a Creative Commons Attribution 4.0 International (CC-BY 4.0) licence ( This means that reuse is allowed provided appropriate credit is given and any changes are indicated. For any use or reproduction of elements that are not owned by the author(s), permission may need to be directly from the respective right holders.