Abstract
The purpose of this paper is to identify the impact of market capital MC and net profit NP on stock price SP and trade volume (TV) in the developing Egyptian business context. This study collects data from 29 non-financial organizations registered on the EGX 30 during the 6 month, 1/1/2020 to 30/6/2020, lockdown in Egypt due to the first wave of COVID-19. Data for the monthly confirmed cases and death cases of COVID-19 are collected for the 6 months of the study and compared to the monthly records of closing prices and trade volume in Egyptian poundsEGP. The study population represents 174 firm year observations. The firms studied operate in cash, have annual financial reports during the period 1/1 to 31/12, obtain complete financial data, and have not been eliminated all throughout the study. In this work the pooled model, the fixed effects model, and the random effects model are used.SPSSis applied to achieve the required statistical analysis. The study is a panel data analysis. Outcomes demonstrate existing substantial effects between market capital MC and stock price SP during the first wave of COVID-19. However, no significant effect is evident of the market capital MC and net profit NP with the trade volume TV during the first wave of this pandemic. This literature is advantageous for external and internal stakeholders and regulatory bodies. The study is a modest contribution that may help boost the business processes to reach better financial performance in times of unexpected catastrophes.
Highlights
An increasing public and media awareness has come to being of the efforts made by corporations in the Egyptian culture. (Abdelshahid, 2003) discusses that the Egyptian stock exchange is ready for the age of globalization
The purpose of this paper is to identify the impact of market capital MC and net profit NP on stock price Stock Price (SP) and trade volume (TV) in the developing Egyptian business context
Second: when the dependent variable is represented by the trade volume (TV) and the independent variables are represented by the MC and NP
Summary
An increasing public and media awareness has come to being of the efforts made by corporations in the Egyptian culture. (Abdelshahid, 2003) discusses that the Egyptian stock exchange is ready for the age of globalization. (Abdelshahid, 2003) discusses that the Egyptian stock exchange is ready for the age of globalization. The stock market is an instrument that offers investors the opportunities to trade with an assortment of financial assets and collect a return on them. Investors consider the behavior of the stock market when making investment decisions. Egypt is found in the Middle East which is considered a politically disturbed and unsound area. Regardless of these circumstances, Egypt has showed continuous and swift economic progress in parallel to other developing economies (Elsayed and Hoque, 2010; and Dahawy and Samaha, 2010). According to (Samaha and Dahawy, 2010), Egypt is greatly progressing in economic reform, refining investment environment and drawing local, regional and foreign direct investments. Egypt is a growing country that is moving to being a market economy
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