The Economics of the Egyptian Stock Market and the Financing of Tourism and Hospitality Projects: A Comparative Study of some Arab Stock Markets

Abstract

Stock Markets are an important part of the economics of the Arabian countries. Securities tradedon a stock exchange include stock issued by listed firms and bonds. The current study aims toinvestigate the effect of Stock Split on Market Capitalization and Market Value in Hospitalityand Tourism in three Bourses. For the purpose of the study, determinations of whether StockSplit made by Hospitality and Tourism Sector Index’s firms on the Egyptian Exchange, SaudiArabian Stock Exchange and Bahrain Bourse have an effect on the splitting firms. The study useshistorical quantitative data during the period (2010:2018) collected from (ASMs). Based onlinear regression analysis, the findings in Travel and Leisure Index in The Egyptian Exchangeindicated that there is a significant positive relationship effect of Stock Split on MarketCapitalization, Market Value, and Market Value on Market Capitalization. Furthermore, theresults showed that in Tourism and Hotels index in Saudi Arabian Stock Exchange there is asignificant positive relationship effect of Stock Split on Market Capitalization, Market Value,and Market Value on Market Capitalization. In addition, the results showed that in Hotels andTourism in Bahrain Bourse there is a significant positive relationship between of Stock Split onMarket Capitalization, Market Value, and Market Value on Market Capitalization. The resultsalso revealed that Stock Split on Market Capitalization, Market Value, and Market Value onMarket Capitalization was considered the most criterion validity in the three Bourses.