Dimensions of the Corporate Mental Image and Its Role in Decision Making to Invest in Common Stocks: Evidence from EGX

Abstract

The study investigates the corporate mental image in the Egyptian Stock Exchange (EGX); its Include cognitive dimension, affective dimension, and behavioral dimension; The data were collected by 432 form questionnaire representing current and potential traders at December and October 2020. The Inferential analysis concluded that the determinants of cognitive dimension include "Profitability growth", "dividend payment patterns", "cash Dividend ", " investment recommendations and fair values". But affective dimension include "Top Management", "corporate strategy", "Investor Relations", "corporate's new products" and "Social and environmental activities. Behavioral dimension; the study found difference impact of the corporate mental image between the primary and secondary market. Finally, the study recommends that the corporate focus to managing their mental image as one of the mechanisms for creating value for shareholders.

Keywords: Behavioral Finance; Mental Image; Cognitive Dimension; Affective Dimension; Behavioral Dimension; Financial Performance; Non-Financial Performance; Common Stock; the Egyptian Stock Exchange

JEL Classification: M10, G10