Market Volatility: A Cross-Event Comparison Based on Availability Heuristic, Uncertainty Aversion, and Loss Aversion

With the continuous development of society, the global economy has shown an overall upward trend. Nevertheless, it is undeniable that various external shocks continue to impact international financial markets. Therefore, this study, from the perspective of behavioral finance, delves into global shocks, specifically natural disasters, geopolitical conflicts, and global health crises, to investigate how such shocks affect investor sentiment and stock market volatility. In behavioral finance, emotional reactions, psychological biases, and attention shifts can significantly influence market dynamics during periods of uncertainty. Drawing on relevant research concerning natural disasters, geopolitical conflicts, and public health crises, this paper finds that global shocks affect investor sentiment, thereby leading to non-fundamental asset demand and intensifying market volatility. The fear, loss aversion, and attention bias triggered by global shocks jointly drive market anomalies. Therefore, strengthening research on how investors' irrational emotional transmission channels affect the market is essential, as this study provides insights into market behavior during crises and holds significant implications for investors, policymakers, and regulators in stabilizing the market during such periods.