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1 – 5 of 5This paper examines the reaction of the Egyptian stock market to two substantial devaluations of the Egyptian pound (EGP) in 2022 and tests the informational efficiency of the…
Abstract
Purpose
This paper examines the reaction of the Egyptian stock market to two substantial devaluations of the Egyptian pound (EGP) in 2022 and tests the informational efficiency of the Egyptian market.
Design/methodology/approach
The paper uses the event study framework to analyze the significance and direction of abnormal returns of the leading index of the Egyptian stock market (EGX30) on and around the devaluation days. It employs both the constant mean model and the market model to estimate the normal returns of the EGX30. Additionally, the paper uses data on two equity indices, one global and one for emerging markets, as benchmarks for normal returns.
Findings
The paper finds that the Egyptian stock market experienced significant positive abnormal returns on the devaluation days of the EGP in March and October of 2022, indicating a positive market reaction to the devaluation. Furthermore, evidence suggests that the Egyptian market may not be informationally efficient as significant positive abnormal returns were observed two weeks before and two weeks after the devaluation day, suggesting news leaks and delayed reactions, respectively.
Originality/value
This study is the first to examine the impact of the recent two devaluations of the EGP in 2022 on the Egyptian stock market. It complements existing literature by analyzing the immediate market reaction to two consecutive devaluations in an African country. Furthermore, the paper evaluates the efficiency of the Egyptian market in processing information related to exchange rates.
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Udemezue Ndubuisi Nnakee, Chi Aloysius Ngong, Chinyere C. Onyejiaku, Shadrack Moguluwa and Josaphat Uchechukwu Joe Onwumere
This paper aims to examine the long-run relationship between stock market development and Nigerian economic growth from 1980 to 2020.
Abstract
Purpose
This paper aims to examine the long-run relationship between stock market development and Nigerian economic growth from 1980 to 2020.
Design/methodology/approach
Market capitalization, number of listed companies, total value traded ratio and turnover ratio are used. An autoregressive distributed lag model is used for the analysis.
Findings
The market capitalization ratio and turnover ratio have positively significant links with economic growth. The number of listed companies has a negative and non-significant impact on economic growth. Total value traded ratio has a negatively significant link with economic growth in the short run. The positive but insignificant relationship between traded value ratio and turnover ratio in the long run growth means that the Nigerian stock market is growth inducing and on the right track as stock market liquidity drives growth.
Research limitations/implications
The government and Security Exchange Commission should increase the market liquidity level by improving the trading infrastructure. The government and regulatory authorities should improve and effectively implement the existing policies that would ensure stock market growth. This facilitates the investors’ speed to purchase and sell shares. The Securities and Exchange Commission should reduce transaction costs to encourage active trading activities. The market should be diversified with investment instruments such as derivatives, futures and swap options which would limit the adverse effect of listed companies in the market. To increase the stock market liquidity, the Security and Exchange Commission should apply moral suasion to bring private companies that have met certain financial thresholds to convert to public companies. Government should improve on the legislation to encourage more private companies to list on the stock exchange.
Originality/value
The study findings add value in that stock market development has a positive impact on economic growth in Nigeria.
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Silky Vigg Kushwah, Payal Goel and Mohd Asif Shah
The current study immerses itself in the realm of diversification prospects within a select group of preeminent global stock exchanges. Specifically, the study casts its…
Abstract
Purpose
The current study immerses itself in the realm of diversification prospects within a select group of preeminent global stock exchanges. Specifically, the study casts its discerning gaze upon the financial hubs of the United States, Hong Kong, Germany, France, Amsterdam and India. In this expansive vista of international financial markets, the present analytical study aims to unravel the multifaceted opportunities that lie therein for astute portfolio management and strategic investment decisions.
Design/methodology/approach
The study encompasses daily time series data spanning from 2019 to 2022. To assess the interconnectedness among these stock indices, advanced statistical techniques, including Johansen cointegration methods and vector autoregressive (VAR) models, have been applied.
Findings
The research outcomes reveal both unidirectional and bidirectional relationships between the Indian, Hong Kong and US stock exchanges, encompassing both short-term and long-term time frames. Interestingly, the empirical findings indicate the presence of diversification opportunities between the Indian stock exchange and the stock exchanges of Germany, France and Amsterdam.
Research limitations/implications
These insights hold significant value for both Indian and international investors, including foreign institutional investors (FIIs), domestic institutional investors (DIIs) and retail investors, as they can utilize this knowledge to construct more effective and diversified investment portfolios by understanding the intricate interconnections between these prominent global stock exchanges.
Originality/value
This research undertaking aspires to bring coherence to a landscape rife with divergent interpretations and methodological divergences. We are poised to offer a comprehensive analysis, a beacon of clarity amidst the murkiness, to shed light on the intricate web of interconnections that underpin the world's stock exchanges. In so doing, we seek to contribute a seminal piece of scholarship that transcends the existing ambiguities and thus empowers the field with a deeper understanding of the multifaceted dynamics governing international stock markets.
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Khalfan Almehairbi, P. Arunprasad and Zakaria El Hathat
This study aims to examine and discuss the importance and benefits of Open Innovation (OI), Transformational Leadership (TL), Innovation Strategy (IS), Creative Climate (CC)…
Abstract
Purpose
This study aims to examine and discuss the importance and benefits of Open Innovation (OI), Transformational Leadership (TL), Innovation Strategy (IS), Creative Climate (CC), Radical Innovation (RI) and Sustainable Competitive Advantage (SCA) for small and medium-sized enterprises (SMEs) in Dubai. This work also examines the mediating impact of future foresight drivers (FFD) on SMEs' SCA. The study provides a theoretical framework for enhancing SMEs' organizational performance and highlights the need for future empirical research.
Design/methodology/approach
The study uses a systematic literature review (SLR) approach and a bibliometric analysis approach to collect, examine and analyze data from previous research on OI, TL, IS, CC, RI and SCA. This work evaluated 110 publications from separate scholarly databases, Scopus and Web of Science (WoS).
Findings
The study finds a positive relationship between OI, TL, IS, CC, RI and SCA and that future empirical research is needed. While there is limited information on the impact of these concepts on SMEs in the Middle East and especially in Dubai, the study presents new concepts to be debated. The study provides a vital tool for businesses to improve their performance by adopting OI, TL and IS and analyzing their present competitive status to develop new strategies and build competitiveness.
Originality/value
The originality of this study lies in its contribution to understanding the relationships among OI, TL, IS, CC and RI and their impact on SMEs' SCA in Dubai. By emphasizing the importance of OI, TL and IS in improving SMEs' performance and competitiveness, this study provides valuable insights for SME managers seeking to enhance their organizations' sustainability and long-term success. The review also identifies a gap in the literature regarding the impact of these concepts on SMEs in the Middle East, emphasizing the need for further research in this area.
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Venkatesh Sneha and R. Kavitha
This study aims at stirring up the existing research conducted in the field of creative economy (CE) and also in the context of Industry 5.0. CE encompasses all the creative…
Abstract
Purpose
This study aims at stirring up the existing research conducted in the field of creative economy (CE) and also in the context of Industry 5.0. CE encompasses all the creative industries/businesses which form a major part of the knowledge-based economy. The functionalities of these setups, their global trends and developments are to be assessed for a better understanding of its present circumstances and its prospective opportunities by augmenting Industry 5.0 and its core principles. This provides a comprehensive illustration to enhance the economic, social, creative and sustainable performances of the creative industry. In addition, the study also seeks to identify the dynamics of creative units and how it could highly contribute to the glorification of the creative and cultural history in the Indian economic backdrop.
Design/methodology/approach
The study adopts a systematic literature review process to fulfill the research objective. Four critical databases in Scopus such as Emerald Insight, Springer Link, Sage Publications and Taylor and Francis have been chosen for the review process. Following the critical literature review process, the chosen articles from each database have been retrieved for an exhaustive analysis within a time frame of 2013–2023 to evaluate the research evolution on the subject area.
Findings
The paper identified various research dimensions and perspectives of the researchers in the area of study. This gives a platform to extensively evaluate the capabilities and functionalities of the sector for strategy building and enhancing returns from the sector.
Research limitations/implications
As the methodology was restricted to top 5 articles from 5 important databases, the study was limited to only those articles and the other open-access peer-reviewed articles/journals/databases have not been considered which is a major limitation. Alongside, as the time frame was restricted for a period of 10 years and only English language papers were chosen, prior study has not been considered, which is also a key limitation to the study.
Practical implications
Policymakers, i.e. government and institutions, can understand the existence and contribution of the CE in different geographical regions for a specified period of time. This helps them understand the new revolution, Industry 5.0, and how they could merge their concepts to bring innovations in the sector and support in building sustainable cities in the emerging economies.
Originality/value
As the paper works on bringing out the viewpoints of multiple authors and research works, it is considered to be a novel study as none of the previous studies, especially systematic literature review works, have been done only in high-quality journals of Scopus database. Therefore, the study holds high-quality information which can be significantly used by creative business units.
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