Many economic turmoils have occurred in Egypt after 2011. The most important one is the decline of investment that lead to the defamation of Egyptian economy. There is no doubt that the continuation of this phenomenon will affect the company's ability to sustain and survive in the market, so Egyptian organizations should have to increase their investment. Therefore, the current study aims at explaining the investors' reaction at the Egyptian stock market of the capital expenditure announcements. It focuses on studying the behavior of share returns in conjunction with these announcements from the period of 2007 to 2017. The study is conducted on all 225 listed companies in the Egyptian stock market. The sample consists of 65 announcements for 43 companies, using non-parametric statistical tests such as Wilcoxon. In general, the results have supported a positive abnormal returns of capital announcement during the study period. The current study also has found a leak of information about these expenditures. The announcements have achieved a significant abnormal return before the disclosure of these expenditures. The market responses have varied, the market and product diversification investments have achieved a significant positive returns in contrast to, the joint venture that has gained negative returns. the cost reduction item has not got any significant responses from the market. these returns are increasing if the company’s growth potential and free cash flows increase.
Ismail, E. S. A. E. F., & El Sayed, Y. A. (2019). The reaction of the Egyptian market to the announcement of capital expenditure. Journal of Alexandria University for Administrative Sciences, 56(4), 1-50. doi: 10.21608/acj.2019.61829
MLA
El Sayeda Abd El Fatah Ismail; Yasmen Ahmed El Sayed. "The reaction of the Egyptian market to the announcement of capital expenditure", Journal of Alexandria University for Administrative Sciences, 56, 4, 2019, 1-50. doi: 10.21608/acj.2019.61829
HARVARD
Ismail, E. S. A. E. F., El Sayed, Y. A. (2019). 'The reaction of the Egyptian market to the announcement of capital expenditure', Journal of Alexandria University for Administrative Sciences, 56(4), pp. 1-50. doi: 10.21608/acj.2019.61829
VANCOUVER
Ismail, E. S. A. E. F., El Sayed, Y. A. The reaction of the Egyptian market to the announcement of capital expenditure. Journal of Alexandria University for Administrative Sciences, 2019; 56(4): 1-50. doi: 10.21608/acj.2019.61829
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