Performance of Stock and Treasury Bills under Inflation and Floating: Evidence from Egypt

Abstract

The aim of this study is comparing the performance of common stock & treasury bills, according to the central bank of Egypt and their monetary policy during the time period between “1994-2017”, using descriptive & inferential statistical methods. The Study concluded that there is a strong positive relationship between inflation rate & returns of Egyptian treasury bills, as the same relation as with floating Egyptian pound.in addition, the study found the impact of Inflation and Floating on the return of Egyptian T-bills, but don’t found this impact on the return of Egyptian common stock. Finally, the study founds the same average return but a different at variances of this return & the Coefficient of variation.

Debt Policy, Efficiency Ratio, Profitability, and Systematic Risk: Evidence From Indonesia

“…According to Titman et al (2021), purchasing luxurious corporate jets and firm apartments and paying for resort hotels during vacations are examples of this spending. Although utilizing different logical explanations, this evidence of the positive relationship between debt policy and market risk is supported by Saji (2018), Arora et al (2019), Wagdi and Tarek (2019), Jaafar et al (2020), Saravia et al (2021) and Mousa et al (2021).…”

“…Saji (2018), Mousa et al (2021), andSaravia et al (2021) display a positive effect using a single regression model. Moreover, Wagdi and Tarek (2019) prove a positive impact when the debt-to-equity ratio is used; unfortunately, they verify the opposite sign when utilizing the long-term debt-to-equity ratio as the proxy. With the polling data regression model, Arora et al (2019) exhibit that financial leverage is positively associated with this systematic risk but meaningless evidence when the fixed effect model is employed.…”

“…The studies attempting to connect debt ratio as the proxy of the liabilities policy with the systematic risk are conducted by researchers employing capital market data from several countries, like the United States (Rowe & Kim, 2010;Saravia et al, 2021); India (Arora et al, 2019;Parthasarathy, 2019;Saji, 2018), Qatar, Dubai, Abu Dhabi, and Kuwait (Mousa et al, 2021); United States, Germany, South Korea, and Egypt (Wagdi & Tarek, 2019), and Japan (Riaz et al, 2019). Unfortunately, the relationship is still mixed.…”

“…According to the trade-off theory of capital structure, besides tax shield benefit, the more debt, the higher the bankruptcy potency (Brealey et al, 2020). According to several scholars studying the capital market from India (Arora et al, 2019;Saji, 2018), the United States, Germany, South Korea, and Egypt (Wagdi & Tarek, 2019), and Malaysia (Jaafar et al, 2020), the United States only (Rowe & Kim, 2010;Saravia et al, 2021), this liability policy still has a connection with systematic risk. Based on the single regression model, Saji (2018) locates the positive association between financial leverage and systematic risk after investigating 52 firms in the National Stock Exchange in India from 2008 to 2015.…”

CEO Narcissism in Arab Equity Markets and Its Repercussions

“…As this study and others indicated that there is a positive correlation between risk and return. (Elbannan, 2015;Wagdi and Tarek, 2019), which is one of the pillars of traditional monetary theory. Previous research has shown a favorable link between CEO narcissism and takeovers in certain areas, such as mergers and acquisitions (M&A).…”