**Author details**

in all the cases (exchange rate and institutional investor), except for (board size, SBF120), i.e., (α + β) ≥ 1 has a high persistence of volatility shocks. So, in this we

**Variables c** *AR***<sup>1</sup> α<sup>0</sup> α<sup>1</sup> β<sup>1</sup> AIC(6) BIC(6) Ljung-Box Pop**

0.7621 0.000

0.8922 0.000

0.75636 0.0000

0.56896 0.04523 3836.10 3859.13 304 0

1250.59 1273.61 5.69 0

3003.86 3026.89 7089 0

4288.42 4311.44 156,124 0

0.1208 0.000

0.4196 0.000

56.68195 0.0000

0.32979 0.07420

This study investigated the relationship between the internal mechanisms of corporate governance and the stock return volatility on panel data models of 89

Concerning the relation between the internal mechanisms of corporate governance and stock return volatility, our results based on the three-stage least squares for simultaneous equations, in this area we can see that the outside directors (FD) and audit size have a positive and significant impact on the stock return volatility, and our results showed that the outside directors (FD) and audit size increase the stock return volatility. Also, we found that the independent directors and ROA have a negative effect on the stock return volatility; this result indicates that these vari-

can see that the institutional investors reduce their stock price volatility.

*Univariate GARCH effects with and without the impact of corporate governance variables.*

ables contribute to decrease and stabilize the stock return volatility.

i.e., (α + β) ≥ 1 has a high persistence of volatility shocks.

For the linkages between stock returns volatility and risk management (exchange rate, treasury bills), our study focuses on French companies composing the SBF 120 during 2006–2013. Our results confirm that an exchange rate is negatively and significantly correlated with the stock return volatility. This result indicates that these variables contribute to decrease and stabilize the stock return volatility. Moreover, the treasury bills have a positive effect on the stock return

Our results showed that the stationarity constraint of the model is verified (α + β < 1) for all the equations, which supports a weak presence of effect ARCH and GARCH in all the cases except for stock index, board of directors, and inv. inst.,

The principal connotation, which occurs from our study, can be posted as follows. The results of this paper are particularly important for research on institutional investor in the French markets and the firm's stock price fluctuation. This paper provides evidence that confirms the benefits of institutional investors in the French markets. Moreover, the finding in this paper suggests that intuitional investors in France are beneficial for the economy not only because for their contribution to the invested firms but also due to the stabilizing effect benefits in macroeconomic perspectives. This paper also has clear policy implications for the government. Firstly, it provides an empirical investigation to clarify the role of the institutional investor's participation. It clearly suggests that the existence of more

**4. Conclusion**

SBF120 0.1156

Board size 0.02216

Exchange rate

Institutional investors

**Table 13.**

0.0970

*Financial Crises - A Selection of Readings*

0.5464 0.0000

0.000

0.08737 0.76299 0.7141 0.000

0.9764 0.00000

0.80378 0.0000

0.79627 0.000

473.83 0.003

0.2086 0.0000

0.0586 0.0000

6052.5 0.1325

volatility.

**26**

firms over the period of 2006–2012.

Aloui Mouna1 \* and Jarboui Anis<sup>2</sup>

1 Department of Financial and Accounting, University of Faculty Economics and Management of Sfax, Tunisia

2 Department of Financial and Accounting, Universities Higher Institute of Business Administration of Sfax, Tunisia

\*Address all correspondence to: mounafba@yahoo.fr

© 2020 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
