The Impact of Business Investment on Euronext Stock Returns: A Study of Companies Listed at Amsterdam, Brussels, Paris, and Lisbon Stock Exchanges between the Years 2017 and 2022

The objective of this work is analyzing the impact that the investment from companies has on a number of Euronext stock returns. For the analysis, we used the Generalized Method of Moments (GMM) to collect a sample of companies from the stock exchanges in Amsterdam, Brussels, Paris, and Lisbon, between 2017 and 2022. The results indicate that the investment generated by companies has a positive and significant impact on Euronext stock returns, therefore suggesting that managers from Euronext companies should employ a balanced investment strategy that incorporates both tangible and intangible assets, in order to enhance stock returns. This study can provide some guidance in decision-making for private and institutional investors investing in Euronext stocks. The originality of this article derives from the analysis of the impact that investment, divided between tangible and intangible assets, has on Euronext stocks returns. Finally, it is important to point out that the use of the GMM methodology allowed for the collection of robust results.