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Effect of Some Firms’ Internal Factors on Value in Emerging Markets: Evidence from the Egyptian Stock Market

Author

Listed:
  • Farahat Ragab Abdeltawab
  • Khairy Elgiziry

Abstract

1- Abstract -         The study aims to test the relation between internal factors of firm & performance of stock price by using Cross-section regression that depends on Yuenan Wang, Amalia Di Lorio (2007) and Fama & Macbath (1973) throughout the period from Jan – 2003 to Dec – 2007, while providing evidence from the Egyptian stock market. The researcher reached certain results- there is a positive relation between Beta and stock return, Beta measure is inappropriate and then CAPM is inappropriate in the Egyptian stock market. In addition, the researched found a positive relation between Earning to price ratio and stock return and a negative relation between dividend to price ratio, Liquidity ratio, debit ratio and stock return. This article consists of a Literature Review, Study Data, Methodology, Empirical Study, Analysis and Interpretation of Results, Conclusion and Recommendations.

Suggested Citation

  • Farahat Ragab Abdeltawab & Khairy Elgiziry, 2016. "Effect of Some Firms’ Internal Factors on Value in Emerging Markets: Evidence from the Egyptian Stock Market," Accounting and Finance Research, Sciedu Press, vol. 5(3), pages 1-87, August.
    • Handle: RePEc:jfr:afr111:v:5:y:2016:i:3:p:87
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    References listed on IDEAS

    as
    1. Wang, Yuenan & Di Iorio, Amalia, 2007. "The cross section of expected stock returns in the Chinese A-share market," Global Finance Journal, Elsevier, vol. 17(3), pages 335-349, March.
    2. Fama, Eugene F. & French, Kenneth R., 1993. "Common risk factors in the returns on stocks and bonds," Journal of Financial Economics, Elsevier, vol. 33(1), pages 3-56, February.
    3. Kothari, S. P. & Shanken, Jay, 1997. "Book-to-market, dividend yield, and expected market returns: A time-series analysis," Journal of Financial Economics, Elsevier, vol. 44(2), pages 169-203, May.
    4. Wang, Yung-Jang, 2002. "Liquidity management, operating performance, and corporate value: evidence from Japan and Taiwan," Journal of Multinational Financial Management, Elsevier, vol. 12(2), pages 159-169, April.
    5. Fukuda, Atsuo, 2000. "Dividend changes and earnings performance in Japan," Pacific-Basin Finance Journal, Elsevier, vol. 8(1), pages 53-66, March.
    6. Chen, Xuanjuan & Kim, Kenneth A. & Yao, Tong & Yu, Tong, 2010. "On the predictability of Chinese stock returns," Pacific-Basin Finance Journal, Elsevier, vol. 18(4), pages 403-425, September.
    7. Berger, Allen N. & Bonaccorsi di Patti, Emilia, 2006. "Capital structure and firm performance: A new approach to testing agency theory and an application to the banking industry," Journal of Banking & Finance, Elsevier, vol. 30(4), pages 1065-1102, April.
    8. Lau, Sie Ting & Lee, Chee Tong & McInish, Thomas H., 2002. "Stock returns and beta, firms size, E/P, CF/P, book-to-market, and sales growth: evidence from Singapore and Malaysia," Journal of Multinational Financial Management, Elsevier, vol. 12(3), pages 207-222, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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