This paper examines the effect of country risk on Foreign Direct Investment (FDI) in Egypt during the years 2005-2015. We employ multiple regression analysis, to test the relationship among the selected variables that drive foreign direct investment flows to Egypt. FDI has always been an interesting topic for research; nevertheless, to the authors' knowledge, the impact of country risk on FDI has not been examined before in Egypt. Since FDI is a notable source of foreign currency income to the Egyptian economy, it becomes inevitable to study the variables that affect the flow of FDI in relevance to the economic outlook in general and country risk in specific. The effect of country risk on FDI could significantly affect economic measurements such as economic growth and required rate of return. Our results show that economic risk measurements have the most significant impact on foreign direct investments inflows to Egypt, while financial risk measurements have no significance. Moreover, political risk is associated with foreign direct investment.
Studies amongst developed countries have extensively investigated the link between corporate social responsibility (CSR) and financial performance. However, due to lack of research in the Middle East, especially in Egypt, the association between CSR and firm risk remains much less understood (Nguyen & Nguyen, 2015). Therefore, this paper is one of the very few studies that investigate the impact of CSR on firm risk amongst developing countries. A sample of 31 Egyptian listed companies was examined over four years, from 2011 to 2015. We test the impact of CSR on firm risk using fixed and random effects estimation models. We use operating leverage, financial leverage and the beta coefficient of the sample companies’ stocks as a proxy for the companies’ risk. Identified control variables are firm size, market-to-book value, return on equity, return on assets, and firm age. Other variables are used to control for corporate governance, board characteristics and audit committee characteristics. The results show that CSR affects operating risk, yet it does not have a significant impact on financial or market risks in Egypt, which in turn emphasizes that CSR in developing countries differs in characteristics from that in developed countries (Vo & Arato, 2020).
Purpose This paper aims to investigate the role of demographics and sector type in determining consumer preferences of Islamic micro-credit products, namely, Musharka and Murabha, versus conventional micro-credit financing in Egypt. Design/methodology/approach This research is a quantitative study that uses surveys on 1,125 current micro-credit consumers in Cairo and Upper Egypt using multi-staged cluster sampling technique. Descriptive and inferential analyses were used to explain results. Findings The study revealed the potential of Musharka mode of financing among micro-credit borrowers in Egypt, specifically in the manufacturing sector, followed by the trade sector. Although previous researches showed correlations between income, age and other demographic factors with consumer financing choices, the current research indicated no significance for consumer demographics in determining preferences of Islamic micro-credit contracts in Egypt. However, the sector type showed high potential in determining consumer choices of Islamic micro-credit contracts. Research limitations/implications This paper advances knowledge in the domain of consumer behavior, specifically in bottom of the pyramid and subsistence markets that are under researched. Practical implications The results highlighted are important for micro-finance institutions, NGOs and policy makers, as they delve deeper into the consumer preferences for Islamic financial products and attempt to present innovative solutions toward poverty eradication. Originality/value This research is one of the few attempts to study and explain consumer preferences toward Islamic micro-credit products in Egypt, and the role of sectors in determining consumer choices for specific Islamic micro-credit contracts.
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