Abstract:

Purpose – This study looks to analyze whether a connection exists between the number of Google searches and Euronext stock returns. Likewise, the impact that investor sentiment has on stock returns was analyzed.

Design/methodology/approach – This is a quantitative investigation of Euronext companies from the period between 2017 and 2021, which used the Generalized Method of Moments (GMM) methodology.

Findings – This study concluded that the number of Google searches has no significant impact on Euronext stock returns. On the other hand, investor sentiment has a negative association with Euronext stock returns, which means that it is in periods of extreme pessimism that good investment opportunities are found, and the highest returns are obtained.

Practical implications – The results of this study provide significant implications for private and institutional investors,  that invest in Euronext shares. This study can help investors’ decision-making when investing in stocks.

Originality/value – The originality of this article resides in the analysis of the impact that the number of searches on Google has on the Euronext stock exchange, considering that no study for this financial market existed until then. The same caveat is made about investor sentiment. Finally, the use of the GMM methodology was also a way to improve the empirical analysis accounting for endogeneity and provide more robust results.