The Exchange Rate Exposure of UK Nonfinancial Companies: Industry-Level Analysis

In line with the financial theory, any change in an exchange rate should affect the value of a firm or an industry. However, earlier research did not fully support this theory, which is surprising in view of the considerable exchange rate fluctuations over the last three decades. This study extends previous research on the foreign exchange rate exposure by investigating contemporaneous and lagged exchange rate exposure of UK nonfinancial companies at the industry level. The analyses are conducted over the total period from 1981 to 2001 and over three subperiods. Since the UK joined the ERM on October 8, 1990 and remained a member until September 16, 1992, the sample period is split into three subperiods: Pre-ERM, In-ERM and Post-ERM subperiods. Therefore, the study also aims to identify the sensitivity of industries’ stock returns to exchange rate movements over these three subperiods. The current study is different from previous studies as it considers the impact of the actual and unexpected changes in exchange rates on industries’ stock returns. The findings show that a higher percentage of UK industries are exposed to contemporaneous exchange rate changes than those reported in previous studies. There is also evidence of significant lagged exchange rate exposure. This lagged exchange rate exposure goes in line with the findings of previous studies, in that it shows some market inefficiencies in incorporating exchange rate changes into the returns of firms and industries. Generally, the sensitivities of UK industries’ stock returns to exchange rate fluctuations are most evident in the period before joining the ERM and after departure from the ERM (post-ERM). The proportion of industries with a significant exchange rate exposure declined when the pound was in the ERM and increased again after the UK left it. The findings of the study have significant implications for public policy makers, investors and managers. However, there is a need for research that considers the factors or determinants that might affect a firm’s or an industry’s exposure to changes in exchange rates.exchange rate changes, foreign exchange exposure, stock returns, UK industries, subperiod analysis and ERM.

Board composition, ownership structure and dividend policies in an emerging market

PurposeThe purpose of this study is to examine dividend policies in an emerging capital market, in a country undergoing a transitional period.Design/methodology/approachUsing pooled cross‐sectional observations from the top 50 listed Egyptian firms between 2003 and 2005, this study examines the effect of board of directors' composition and ownership structure on dividend policies in Egypt.FindingsIt is found that there is a significant positive association between institutional ownership and firm performance, and both dividend decision and payout ratio. The results confirm that firms with a higher return on equity and a higher institutional ownership distribute higher levels of dividend. No significant association was found between board composition and dividend decisions or ratios.Originality/valueThis study provides additional evidence of the applicability of the signalling model in the emerging market of Egypt. It was found that despite the high institutional ownership and the closely held nature of the firms, which imply lower agency costs, the payment of higher dividend was considered necessary to attract capital during this transitional period.</jats:sec

The Wallet of Digital Citizens: Online Payment Adoption in the Developing Countries’ Public Administration – Case of Egypt

Online payment methods play a crucial role in helping digital citizens interact and receive e-government services. Citizens’ tendency to accept online payments in the public sector is a vital factor in implementing successful e-government services. Therefore, this study aims to investigate the behavioral, institutional, and social aspects that influence citizens’ tendency to accept the usage of digital payments in the Egyptian public sector. To achieve this objective, the study relies on conducting in-depth interviews with citizens who belong to different age, and social and educational backgrounds, in addition to policy experts and public employees. Meanwhile, the study adopts the lens of the UTUAT model to analyze the different dimensions that affect citizens\u27 perceptions and attitudes toward the issue. The findings of the study confirm the assumptions of the UTUAT model and highlight the importance of trust and inclusion as key factors in influencing citizens’ behavioral intentions

On the applicability of credit scoring models in Egyptian banks

Credit scoring is regarded as a core competence of commercial banks during the last few decades. A number of credit scoring models have been developed to evaluate credit risk of new loan applicants and existing loan clients. The main purpose of the present paper is to evaluate credit risk in Egyptian banks using credit scoring models. Three statistical techniques are used: discriminant analysis, probit analysis and logistic regression. The credit scoring task is performed on one bank’s personal loans data-set. The results so far revealed that all proposed models gave a better average correct classification rate than the one currently used. Also both type I and type II errors had been calculated in order to evaluate the misclassification costs

Reforming the Solid Waste Management System: The Case of Rural Areas in Egypt /إصلاح نظام إدارة النفايات الصلبة: حالة المناطق الريفية في مصر

The policy paper tackles the issue of managing solid waste in rural areas in Egypt. It mainly targets the reform of the solid waste management system. The authors deal with rural areas specifically due to their importance and significance. In this context, the policy paper research demonstrated that the current solid waste management system in the governorates studied has a number of flaws and limitations. These issues show the inadequate solid waste management technical performance at the governorate level in terms of institutional, technical, financial, economic, and environmental factors, due to the lack of or ineffective solid waste management departments in local government. In the end, the paper provides a set of recommendations that are essential to support the successful implementation. However, the researchers agreed on one core policy that is cost-efficient and is considered the most important. The selected policy alternative is the establishment of a national-wide campaign in the Egyptian rural areas that aims to raise the individuals’ awareness on the economic, social, and health aspects of the issue as well as how to reduce generating waste, increase waste reuse, and facilitate the segregation of waste

Hepatic protective effect of grape seed proanthocyanidin extract against Gleevec-induced apoptosis, liver Injury and Ki67 alterations in rats

Gleevec (imatinib) is an antineoplastic chemotherapeutic agent used in the treatment of many types of cancer. The current study was conducted to examine the possible modifying effects of grape seeds proanthocyandins extract (GSPE) against apoptosis, liver injury and Ki67 alterations induced by Gleevec in male rats. 40 male albino rats were equally divided into four groups (First and second groups were control and GSPE groups; third group was Gleevec group and fourth group was treated with Gleevec and GSPE). Gleevec induced elevations in P53 and depletion of Bcl2 levels in liver tissues were compared with the control group. Liver sections in rats treated with Gleevec exhibited marked cellular infiltrations, vacuolar degeneration hepatocytes, numerous apoptotic cells, and congestion in central and portal veins, as well as a significant increase in the proliferating of Ki67 after Gleevec injection as compared with control group. In contrast, treatment with Gleevec and GSPE showed a moderate to good degree of improvement in hepatocytes with a significant increase in Ki67, a decrease in P53 and an increase in Bcl2 levels in liver tissues compared to treatment with Gleevec. Therefore, Gleevec induces apoptosis, injury and Ki67 changes in rat liver, whereas GSPE modulates these alternations