IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-05252697.html
   My bibliography  Save this paper

COVID-19, Stock Market Crisis and Investor Sentiment: French and USA Case

Author

Listed:
  • Dalenda Ben Ahmed

    (RED-ISGG - Recherche, Entreprises et décision - ISGGB - Institut Supérieur de Gestion de Gabès (Université de Gabès))

  • Jamel Eddine Henchiri

    (RED-ISGG - Recherche, Entreprises et décision - ISGGB - Institut Supérieur de Gestion de Gabès (Université de Gabès))

Abstract

Purpose: This work is part of the behavioral literature, whose objective is to evaluate the capacity of investor sentiment to predict the Covid-19 crisis on the French and American stock markets. Design/methodology/approach: Our study is based on all companies listed in the CAC40 index for France and the Dow Jones index for the US during the first half of 2020, when the Covid19 pandemic started. The statistical methods "Time Series" model used to test our hypothesis on the contribution of investor sentiment, the interest rate and the inflation rate to development of stock market crises. Findings: The results show that the Covid-19 crisis is positively and significantly explained by investor sentiment. While,the interest rate and inflation negatively influence the probability of a stock market crisis. The results also show that the inclusion of psychological factors improves the explanatory power of our alert model and proves to be effective in predicting stock market crises. Originality: This work can be considered as the first one to evaluate the cointegration between the Covid-19 crisis and the investor's sentiment.

Suggested Citation

  • Dalenda Ben Ahmed & Jamel Eddine Henchiri, 2025. "COVID-19, Stock Market Crisis and Investor Sentiment: French and USA Case," Post-Print hal-05252697, HAL.
    • Handle: RePEc:hal:journl:hal-05252697
    DOI: 10.62754/joe.v4i4.6757
    Note: View the original document on HAL open archive server: https://hal.science/hal-05252697v1
    as

    Download full text from publisher

    File URL: https://hal.science/hal-05252697v1/document
    Download Restriction: no
    File URL: https://libkey.io/10.62754/joe.v4i4.6757?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-05252697. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.