Egyptian Market Research Articles

The Impact of Blockchain Technology Activation by Audit Clients on Internal Control Structure Effectiveness: An Experimental Study

The research aimed to study and test the impact of blockchain activation by audit clients on the effectiveness of the internal control structure. To achieve the research objective, an experimental approach was used to test the research hypotheses on a sample of auditors belonging to accounting and auditing firms in Egypt. According to auditing standards, specifically the second fieldwork standard, the auditor is responsible for performing tests of compliance and adherence related to internal controls for the purpose of assessing the level of control risk, and thus the risk of material misstatement, leading to the planning of detection risk. The theoretical part of the research concluded that blockchain technology is one of the most impactful technological applications in the current work environment. Additionally, there is a near consensus in previous related studies that activating this technology has an impact on the five main components of the internal control structure . In its practical part, the research concluded that the five research hypotheses related to the components of the internal control structure were accepted, confirming auditors' awareness of the potential benefits of blockchain activation by audit clients to enhance the effectiveness of the internal control structure. KEYWORDS blockchain technology, control activities, digital transformation, Egyptian market, financial transactions, internal audit

The Impact of Social Media Influencers characteristics on Customers’ purchase Intension in the Egyptian Market

The Impact of Social Media Influencers characteristics on Customers’ purchase Intension in the Egyptian Market

A study of big bath practices in the Egyptian capital market: an emphasis on CEO turnover and origin

Purpose This study aims to investigate how major big bath accounting practices and CEO turnover in Egypt relate to one another, as well as the first to use the CEO’s origin as a moderating factor. Design/methodology/approach This study uses 10-year longitudinal data from 2012 to 2021 and 290 firm-year observations from Egypt’s listed nonfinancial firms that witnessed CEO turnover to identify the significant big bath accounting practices in Egyptian businesses after the Egyptian revolution and the COVID-19 pandemic. Using fixed and random effect models, the authors investigate the impact of CEO turnover on company earnings during the first year of a newly appointed CEO as an indicator of big bath practices after controlling CEO gender, experience, firm size, leverage, return on assets, return on equity and industry. The hypotheses were investigated using static panel data. Findings The results show the presence of big bath practices in the Egyptian market. Furthermore, big bath accounting practices are positively correlated with CEO turnover. Moreover, the results indicate that big bath accounting practices are only endured when external CEOs are employed, rather than internal ones. Research limitations/implications The sample size and availability of data are the main research limitations. In addition, this study only examined CEO turnover and CEO origin as moderators in big bath accounting. Thus, future research may consider other CEO characteristics and political factors associated with big bath practices. Practical implications The findings from this study offer valuable insights to investors and regulators for effective decision-making and governance practices within the Egyptian capital market, while also contributing to a more informed approach to emerging markets on a global scale. Originality/value The findings contribute to the big-bath and CEO turnover and origin literature by showing a lower ceiling for earnings manipulation and using Egypt as a case study due to its unique institutional environment.

Does bancassurance influence the financial performance of the insurance industry? A case study of life insurance company in a developing country

Purpose This study aims to examine the impacts of bancassurance contracts on the financial performance of the Egyptian insurance market from 2011 to 2022. Design/methodology/approach To achieve this main objective, a mixed methodological approach was adopted: a quantitative methodological approach through analyzing the content of Misr Life Insurance (MLI) Firm’s annual reports from 2011 to 2022. This period frame includes three crucial eras in the history of Egypt: the period covered by the two revolutions in Egypt, the period of political and economic stability and the COVID-19 period. Furthermore, a paired sample test was conducted for two related samples to examine the differences between the averages of financial indicators of MLI Firm for the period prior to and after the bancassurance. Additionally, a qualitative case study approach was adopted, focusing on the MLI Firm in Egypt. To support and confirm the results from quantitative content analysis, an interview was conducted with a financial manager from MLI Company. Findings Generally, the analysis reveals that the financial performance indicators of MLI are significantly influenced by bancassurance because of the variations between the financial performance of MLI Company before and after bancassurance, as the company’s financial performance rose after the bancassurance experience. Therefore, the current research suggests promoting awareness of bancassurance contracts in Egypt to boost financial performance and economic development through bulletins. Research limitations/implications The research has limitations because of its mixed methodological approach, focusing on annual reports, the Egyptian life insurance environment and the insurance sector. Practical implications The findings of this research are probably going to be helpful in clarifying the state of bancassurance in the Egyptian insurance industry for a wide range of interested parties, including managers, investors and scholars. More specifically, this research provides insights into MLI’s financial performance from 2011 to 2022. It aids investors in making informed decisions, boosts shareholder trust and encourages new business in the Egyptian insurance industry. Originality/value This research strives to establish a novel field of study, as there are few studies in developing countries that introduce empirical evidence on the impact of bancassurance on the financial performance of insurance firms in Egypt.

Cryptocurrency volatility and Egyptian stock market indexes: A note

Cryptocurrency volatility and Egyptian stock market indexes: A note

The success and failure in the economic impact of E-commerce on Egyptian economic market A comparison study of Egyptian market in Amazon and Alibaba

The success and failure in the economic impact of E-commerce on Egyptian economic market A comparison study of Egyptian market in Amazon and Alibaba

Deploying Interactive Sensory Methods on Developing the Packaging Design in the Egyptian Market

Deploying Interactive Sensory Methods on Developing the Packaging Design in the Egyptian Market

How Oil Price Shocks Affect the Egyptian Stock Market Performance in the Context of Recent Challenges

How Oil Price Shocks Affect the Egyptian Stock Market Performance in the Context of Recent Challenges

The Effect of Managerial Ability on Firm Investment Decisions: Evidence from Egyptian Stock Market

The Effect of Managerial Ability on Firm Investment Decisions: Evidence from Egyptian Stock Market

The Effect of Celebrity Endorsement on Consumer Buying Behaviour: An Applied Study on the Real Estate Market in Egypt

The Effect of Celebrity Endorsement on Consumer Buying Behaviour: An Applied Study on the Real Estate Market in Egypt

The implications of COVID-19 on ESG performance and financial reporting quality in Egypt

Purpose This examine the impact of environmental, social and governance (ESG) performance on financial reporting quality (FRQ) before and during COVID-19 in the Egyptian market. Design/methodology/approach This study uses quarterly data from 2017 to 2021 to draw conclusions, with a sample consisting of 486 firm-year observations for 27 Egyptian companies listed on the Standard and Poor’s/Egyptian Stock Exchange ESG index. This study uses both firms’ ESG scores and the Beneish Model, an earnings detection model, as proxies for FRQ. COVID-19 effects on ESG performance and FRQ were examined by using Pearson’s correlation coefficient and two-stage least squares. Findings COVID-19 has a significant impact on the link between ESG and FRQ. This implies that corporations with high ESG performance are less likely to manipulate earnings (having a low M-score) and thus provide high FRQ during the COVID-19 pandemic. Moreover, there is a significant positive relationship between firm size, leverage and M-Score, indicating that large firms typically present a high FRQ. Research limitations/implications The sample size and data availability are the main research limitations. Additionally, this study only considers the effects of firms’ ESG performance on FRQ during the COVID-19 pandemic. Thus, future research should consider other factors associated with investors’ corporate social responsibility (CSR). Practical implications This research has practical implications for market regulators seeking to establish a legislative framework and enhance guidance to mandate managers to provide ESG data and CSR reports appropriate for Egypt and other developing economies in times of crisis. Social implications Promoting the adoption of ESG practices in business, particularly during crises, has the potential to effectively provide high-quality and reliable financial reporting required for investment. Originality/value This study aspires to address notable deficiencies in the pertinent literature concerning the relationship between ESG performance and FRQ during COVID-19. To the best of the authors’ knowledge, little is known about how ESG performance changes in response to pandemics in emerging markets. To address this gap, this study examines the effects of COVID-19 on the relationship between ESG performance and FRQ in Egyptian-listed firms from 2017 to 2021.

Precision in Insurance Forecasting: Enhancing Potential with Ensemble and Combination Models based on the Adaptive Neuro-Fuzzy Inference System in the Egyptian Insurance Industry

ABSTRACT Enhancing the precision of retention ratio predictions holds profound significance for insurance industry decision-makers and those vested in advancing insurance services. Precision helps insurance companies navigate inflationary pressures and evaluate underwriting profitability, enabling reliable prognoses of future underwriting gains. As far as we know, although there have been multiple attempts to construct a predictive model for retention ratio, none of these attempts have used combining models or studied the Egyptian market. Therefore, this study contributes significantly to this developing field by providing combining models, which combined statistical time series models such as Exponential Smoothing (ES), and Autoregressive Integrated Moving Average (ARIMA), with Adaptive Neuro-Fuzzy Inference System (ANFIS). Two different types of combinations are employed with these models. Furthermore, the study introduces three ensemble models designed for the purpose of predicting the retention ratio within the Egyptian insurance market. Dataset was carefully gathered from the EFSA’s annual reports, focused on the property-liability insurance sector within the Egyptian insurance market and covers the time period from 1989 to 2021. Next, the proposed models are assessed employing well-established statistical assessment metrics, namely, Mean Absolute Error (MAE), Mean Absolute Percent Error (MAPE), R Square (R2), and Root Mean Square Error (RMSE). The results show that combining and ensemble methods improve predicted accuracy. A multi-linear regression-based ensemble model that combines ARIMA, ES, and ANFIS models outperforms both single and combined models in robustness. The article concludes that the insurance industry can greatly benefit from modern predictive methods to make sound decisions.

Examining the Relationship between Marketing Strategies and Financial Measures, An Applied Study on the Egyptian market

Examining the Relationship between Marketing Strategies and Financial Measures, An Applied Study on the Egyptian market

Examining the Impact of Content Marketing on Advertising Effectiveness: A Study on the Egyptian Market for Passenger Automobiles

Examining the Impact of Content Marketing on Advertising Effectiveness: A Study on the Egyptian Market for Passenger Automobiles

Investor Loss Aversion and Stock Market Performance (An Empirical Study on the Egyptian Stock Market)

Investor Loss Aversion and Stock Market Performance (An Empirical Study on the Egyptian Stock Market)

Tracking the Variations in Trace and Heavy Elements in Smoking Products Marketed in Oman and Egypt: Risk Assessment After Implementation of Constraining Protocols.

Tobacco smoking is becoming one of the major worldwide concerns regarding environmental pollution as well as health threats. In 2005, the World Health Organization (WHO) released the Framework Convention On Tobacco Control (FCTC), which outlined protocols for controlling tobacco products. Oman was one of the leading countries to follow these protocols; however, Egypt has only followed these protocols recently in 2020. One of the main challenges in tobacco product control is the variation in their trace element's types and amounts from country to country owing to differences in agriculture techniques and used chemical additives. Smoking releases different toxic metal ions found in them into the air, and hence, analyzing trace amounts of metals in tobacco smoking products is becoming more critical. The proposed research aims to evaluate the current levels of 11 heavy metals (namely, As, Pb, Cd, Co, Cr, Be, Ba, Mn, Ni, Fe, and Hg) in 22 tobacco products available in Egypt and Oman using inductively coupled plasma optical emission spectroscopy and a direct mercury analyzer. Although some elements such as Be, Co, and Cd were absent, the positive detection of As and Pb and the levels of Ba, Cr, and Ni are still alarming, especially for heavy smokers. The obtained results were then statistically related to previously published data in 2017 to explore the effectiveness of implementing the FCTC protocols within the Egyptian market. The outcomes suggested a positive impact of FCTC protocol implementation in Egypt, besides the lower levels of elemental content for Omani products compared to the Egyptian market.

Genetic and virological characteristics of a reassortant avian influenza A H6N1 virus isolated from wild birds at a live-bird market in Egypt.

The first detection of a human infection with avian influenza A/H6N1 virus in Taiwan in 2013 has raised concerns about this virus. During our routine surveillance of avian influenza viruses (AIVs) in live-bird markets in Egypt, an H6N1 virus was isolated from a garganey duck and was characterized. Phylogenetic analysis indicated that the Egyptian H6N1 strain A/Garganey/Egypt/20869C/2022(H6N1) has a unique genomic constellation, with gene segments inherited from different subtypes (H5N1, H3N8, H7N3, H6N1, and H10N1) that have been detected previously in AIVs from Egypt and some Eurasian countries. We examined the replication of kinetics of this virus in different mammalian cell lines (A549, MDCK, and Vero cells) and compared its pathogenicity to that of the ancestral H6N1 virus A/Quail/HK/421/2002(H6N1). The Egyptian H6N1 virus replicated efficiently in C57BL/6 mice without prior adaptation and grew faster and reached higher titers than in A549 cells than the ancestral strain. These results show that reassortant H6 AIVs might pose a potential threat to human health and highlight the need to continue surveillance of H6 AIVs circulating in nature.

The Effect of Risk Disclosure on Investment Efficiency: An Applied Study

The purpose of the research: This study aims to investigate the effect of corporate risk disclosure (RD) on investment efficiency in the Egyptian environment. Data and materials and methodology: The researcher conducts an applied study using a sample of 376 firm-year observation from Egyptian firms listed on EGX100 after excluding the banking sector and insurance companies due to their special accounting nature in the time period 2017-2022 in order to avoid the negative effects of inflation in the Egyptian market. The researcher uses content analysis to calculate a risk disclosure index (RDI) from annual reports and studies how it impacts the efficiency of investment in companies. Results: The results demonstrated a significant positive effect of RD on investment efficiency, where RD decreases the underinvestment and increases the overinvestment which leads in sum to more investment efficiency. These results are consistent with some of the theories and previous studies that confirmed the role of RD in enhancing investment efficiency. Keywords: Risk disclosure- Investment Efficiency- Overinvestment- Underinvestment.

Compliance with IFRS17 Standards in Takaful Insurance: Challenges, Solutions, and Future Perspectives for Egyptian Market

Compliance with IFRS17 Standards in Takaful Insurance: Challenges, Solutions, and Future Perspectives for Egyptian Market

Carbon nanoparticles versus patent blue dye for detection of sentinel lymph node in patients with early breast cancer

Background Sentinel lymph nodes biopsy (SLNB) has replaced axillary lymph node dissection (ALND) in a considerable percentage of patients with early-stage breast cancer which was a great advance in preventing many surgical complications and enhancing their health welfare. Although there are different sentinel lymph nodes (SLNs) tracers with different identification rates, there is no agreement about the idealistic method. Aim The study was designed to compare carbon nanoparticles and patent blue v dye regarding SLNs detection rate, number of SLNs, time of detection, metastatic SLNs, cost, and safety in patients with early breast cancer and clinically node-negative axilla. Patients and methods A total of 40 patients with axillary lymph node-negative early-stage breast cancer patients were divided into two groups and subjected to carbon nanoparticles and patent blue V dye in group A and group B, respectively. Patients who were pregnant or lactating had node-positive axilla (N1-3) or metastatic breast cancer (M1) or had neoadjuvant chemotherapy were excluded. Results The mean age was 48.3±9.5 and 47 ±8.9, while the mean BMI of 33.3±4.8 and 32.834±4.862, the SLN detection rates were 95% and 90% in groups A and B, respectively. A total of 128 sentinel lymph nodes (SLNs) were removed from patients in the two groups (65 with Carbon Nanoparticles and 63 with patent blue dye). The mean number of SLNs was 3.4±0.7 (range, 2–5) and 3.5±1.2 (range, 2–7), mean time of SLNs detection was 13.5±4.5 (range, 7–22) and 12.7± 3.6 (range, 7–18 min) between group A and B, respectively. Conclusion There is no significant difference between carbon nanoparticles and patent blue dye regarding axillary SLNs in early breast cancer regarding identification rate, number of SLNs, time of detection, metastatic SLNs, cost, and safety with slight preference to carbon nanoparticles regarding postoperative skin staining and Egyptian market availability.