Vol. 19, N°3 (2024)

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The impact of investor sentiment on corporate performance : evidence from the French stock market

Résumé

The aim of this study is to examine the impact of investor sentiment on the financial performance of companies. To create a composite index of investor sentiment, we employ two methods : principal components analysis following Baker and Wurgler (2006), and partial least squares as per Huang, Juang, Thu, and Z hou (2015).

The proxies utilized to gauge investor sentiment include the closed-end fund discount, turnover ratio, number of IPOs, first-day returns on IPOs, dividend premium, and equity share in new issues. Panel data from 145 non-financial, listed companies in the CAC ALL TRADABLE French stock market index is utilized for the analysis. The data covers a monthly period from January 1, 2009, to December 31, 2021. Our findings indicate that both investor sentiment indices, SI^BW (Baker and Wurgler) and SI^HJTZ (Huang, Juang, Thu, and Zhou), significantly influence firm performance at the 5% level.

Comment citer cet article

Monjia Guesmi & Siwar Ellouz (2024), " The impact of investor sentiment on corporate performance : evidence from the French stock market , International Journal of Management And Technologies Journal, Vol.19, N°3, pp: 101-120