The Impact of the Global Financial Crisis (2008) on Transportation Companies: The Case of the Egyptian Exchange

Abstract

This paper attempts to investigate the impact of the global financial crisis (2008) on transportation companies listed the Egyptian exchange. This has been conducted using panel data analysis according to both of fixed and random effect models and both of NLS and ARMA regression techniques, as applied on a sample of three Transportation companies over the period from 2006 to 2016. Results indicate that there is a significant effect of change in EGX30 index, change in the industrial goods, services and automobiles sector index and change in the General Index of the US Exchange (NASDAQ) on the change in stock price of transportation companies listed in the Egyptian Exchange. Besides, there is a significant effect of change in NASDAQ on the change in EGX30 and change in the industrial goods, services and automobiles sector index in the Egyptian Exchange. Moreover, results indicate that the change in NASDAQ index may have a significant positive effect on change in EGX30 and the sector index.