The Moderator Role of Convex Returns in the Geopolitical Risk-Corporate Investment Relationship: An Applied Study on the Egyptian Construction Sector | ||
| مجلة البحوث المالية والتجارية | ||
| Volume 26, Issue 3 - Serial Number 1, July 2025, Pages 1179-1214 PDF (686.45 K) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/jsst.2025.391281.2046 | ||
| Author | ||
| remond libda* | ||
| كلية التجارة جامعة طنطا | ||
| Abstract | ||
| This research investigates the moderator role of convex returns in shaping the influence of Geopolitical Risk (GPR) on Corporate Investment decisions. This applied study was conducted on construction firms listed on the Egypt Stock Exchange, EGX 100 during the period from 2018 to 2024. The study was reliant on secondary data that was published in the financial statements and reports of these companies and the GPR_EGY index. Furthermore, the study employed the Data Panel data method, which integrates cross-sectional and time series data. The data were statistically analyzed using STATA 14. The study results showed a significant negative impact of Geopolitical Risk that is represented by the GPR_EGY index, on corporate investment decisions. In addition that a stronger ability to substitute labor for capital, or a higher labor share, leads to a rise in the convexity and weakens the negative impact of the GPR index on corporate investment in the Egyptian construction firms. | ||
| Keywords | ||
| Geopolitical Risk; GPR Index; Corporate Investment; Convex Returns; Egyptian Construction Sector | ||
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