The Economics of the Egyptian Stock Market and the Financing of Tourism and Hospitality Projects: A Comparative Study of some Arab Stock Markets

Document Type : Original Article

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Abstract

Stock Markets are an important part of the economics of the Arabian countries. Securities traded
on a stock exchange include stock issued by listed firms and bonds. The current study aims to
investigate the effect of Stock Split on Market Capitalization and Market Value in Hospitality
and Tourism in three Bourses. For the purpose of the study, determinations of whether Stock
Split made by Hospitality and Tourism Sector Index’s firms on the Egyptian Exchange, Saudi
Arabian Stock Exchange and Bahrain Bourse have an effect on the splitting firms. The study uses
historical quantitative data during the period (2010:2018) collected from (ASMs). Based on
linear regression analysis, the findings in Travel and Leisure Index in The Egyptian Exchange
indicated that there is a significant positive relationship effect of Stock Split on Market
Capitalization, Market Value, and Market Value on Market Capitalization. Furthermore, the
results showed that in Tourism and Hotels index in Saudi Arabian Stock Exchange there is a
significant positive relationship effect of Stock Split on Market Capitalization, Market Value,
and Market Value on Market Capitalization. In addition, the results showed that in Hotels and
Tourism in Bahrain Bourse there is a significant positive relationship between of Stock Split on
Market Capitalization, Market Value, and Market Value on Market Capitalization. The results
also revealed that Stock Split on Market Capitalization, Market Value, and Market Value on
Market Capitalization was considered the most criterion validity in the three Bourses.


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