當提及投資者情緒時，大多數的文獻都集中在國內市場情緒。然而，由於台灣的股票市場相比於紐約證券交易所等大型市場而言相對較小，因此外國投資者在台灣股市中扮演著重要角色。一般來說，吸引更多國內外投資者的大公司通常也擁有大量的分析師追隨者，所以我們好奇國外市場情緒是否會通過他們對台股的影響來影響分析師的報告(如：評價)。本文選擇了五個代理變量，並使用主成分分析（PCA）來構建外國投資者情緒，來衡量分析師在不同的國外情緒下的反應。這五個變量包括外資凈匯入資金（NIRFI）、標準化市場周轉率（NTOR）、外資買賣差（BSI）、put-call ratio（PCR）和外資未平倉量（NPOI），這些變數分別來自外匯、股票、選擇權和期貨市場。為了進一步消除總體經濟因素，本文依造 Connolly和Stivers（2003）的方法使用市場調整週轉率(MRTO)來消除總體因素。我們的結果顯示，當外國投資者在早期情緒高漲時，分析師的建議往往是偏向樂觀的。這一發現表明，一般投資者可以通過觀察外國投資者在四個國內市場的行動來評估外國投資者的情緒水平。一旦一般投資者認為目前國外市場情緒過熱高，他們在接下來的時期應該對分析師的建議更加謹慎。

When it comes to investor sentiment, most of literature focuses on the domestic level. However, since Taiwan's stock market is quite small compared to the large markets, foreign investors have great impact on domestic market. In general, large companies attracting more domestic and foreign investors usually own lots of analyst followers, so we wonder how foreign investor sentiment influence analyst’s report through their impact on the Taiwan’s stock market. This paper selects five proxy variables to and use principal component analysis (PCA) to construct foreign investors sentiment and measure how analyst react under different foreign sentiment. The five variables include net inward remittance of foreign investor (NIRFI), normalized turnover rate (NTOR), buy-sell imbalance (BSI), put-call ratio (PCR) and net positions on open interest of foreign investor (NPOI) from four market, which are foreign, stock, option and future market, respectively. To further eliminate macroeconomic factors and access pure index, this paper uses market-adjusted turnover rate (MRTO) to drop the macro effect, which is followed Connolly and Stivers (2003)’ method. Our results show that analysts' recommendations tend to be optimistic when foreign investor sentiment is high in the early period. This finding suggests that the general investor can assess the level of foreign investor sentiment by observing the actions of foreign investors in the four domestic markets. Once the general investor identifies a period of high sentiment, they should be more cautious about analysts' recommendations in the following period.

Ahmed, Anwer S., Lobo, Gerald J. and Zhang, Xiao-hu, 2000, Do analysts under-react. to bad news and over-react to good news?, SSRN Electronic Journal.
Bae, Kee-Hong, Stulz, René and Tan, Hongping, 2008, Do local analysts know more? A cross-country study of the performance of local analysts and foreign analysts, Journal of Financial Economics 88(3), 581-606.
Scharfstein, David S. and Stein, Jeremy C., Herd Behavior and Investment, The American Economic Review 88(3), 465-479.
Jegadeesh, Narasimhan and Kim, Woojin, 2010, Do Analysts Herd? An Analysis of Recommendations and Market Reactions, The Review of Financial Studies 23(2), 901-937
Asquith, Paul & Mikhail, Michael B. & Au, Andrea S., 2005. Information content of. equity analyst reports, Journal of Financial Economics 75(2), 245-282.
Easterwood, John C. And Nutt*, Stacey R., 1999, Inefficiency in Analysts’ Earnings. Forecasts: Systematic Misreaction or Systematic Optimism?, The Journal of Finance 54(5), 1777-1797.
Abarbanell, Jeffery S. , Lanen, William N. , Verrecchia, Robert E., 1995, Analysts' forecasts as proxies for investor beliefs in empirical research, Journal of Accounting and Economics 20, 31-60.
Fisher, Kenneth L. & Statman, Meir, 2000, Investor Sentiment and Stock Returns, Financial Analysts Journal 56, 16-23.
Lemmon, Michael and Portniaguina, Evgenia, 2006, Consumer Confidence and Asset
Prices: Some Empirical Evidence, The Review of Financial Studies 19, 1499–1529.
Cliff, Michael T. and Cliff, Gregory W., 2001, Investor Sentiment and the Near-Term. Stock Market, Journal of Empirical Finance 11, 1-27.
Baker, Malcolm and Wurgler, Jeffrey, 2007, Investor Sentiment in the Stock Market, Journal of Economic Perspectives 21(2), 129–151.
Lin, Mei-Fen, Chin, Chen-Lung and Chin, Chen-Lung, 2011, Investor Sentiment and Analyst Behavior, Journal of Management 28(5), 447-474.
Wang, Xiaochen, 2021, Does Investor Sentiment affect Stock Return: Evidence from
Chinese Industry Index in Shanghai A Share Market, World Scientific Research Journal 7(5), 2472‐3703.
Chung, Chune Young, Kim, Hyeyoen & Ryu, Doojin, 2017, Foreign investor trading and information asymmetry: evidence from a leading emerging market, Applied Economics Letters 24 2017, 540-544.
Long, J. Bradford De, Shleifer, Andrei, Summers, Lawrence H. and Waldmann,
Robert J., 1990, Noise Trader Risk in Financial Markets, Journal of Political. Economy 98(4), 703-738.
Connolly, Robert and Stivers, Chris, 2003, Momentum and Reversals in Equity‐Index. Returns During Periods of Abnormal Turnover and Return Dispersion, Journal of Finance 58(4), 1521-1556.
Clement, Michael B., Tse, senyo Y., 2005, Financial Analyst Characteristics and Herding Behavior in Forecasting, Journal of Finance 60(1), 307-341
Hribar, Paul and McInnis, John, 2012, Investor Sentiment and Analysts’ Earnings Forecast Errors, Management Science 58(2), 293–307