Does other comprehensive income volatility influence Credit risk? An empirical study on non-financial companies listed in the Egyptian stock exchange. | ||
| مجلة البØوث التجارية | ||
| Articles in Press, Accepted Manuscript, Available Online from 04 November 2025 | ||
| Document Type: تجاریة کل ما یتعلق بالعلوم التجاریة | ||
| DOI: 10.21608/zcom.2025.434716.1512 | ||
| Author | ||
| ندا ØµÙ„Ø§Ø Ø¨Ø±ÙƒØ§Øª* | ||
| المعهد التكنولوجى العالى بالعاشر من رمضان | ||
| Abstract | ||
| This study aims to investigate the influence of incremental volatility of other comprehensive income and comprehensive income volatility on credit risk. I used a sample of 47 companies listed on the Egyptian stock exchange distributed over 14 sectors during the period 2021-2024. The study yielded results pointing to no significant relationship between the incremental volatility of other comprehensive income and 1/distance to default (the measure of credit risk), however a significant relationship between incremental volatility of other comprehensive income and credit risk measured by debt to equity ratio is evidenced. Also, a significant relationship between comprehensive income volatility and credit risk measured by debt to equity ratio is found. The study results have several limitations. First, the sample size is limited, which makes it easier for individual observations or outliers to have an effect that hide real effects. Second, the DD measure cannot be sufficiently applied unless the market is efficient. Furthermore, the statistical studies were conducted on the components of the OCI that are currently recorded; however, if additional components arise in the future as a consequence of improvements in the country's economic conditions, the results may vary. In future research, it may be useful to include a suitable missing moderator in the relationship, as this could provide a more complete knowledge of how the variables interacted together. | ||
| Keywords | ||
| other comprehensive income; comprehensive income; credit risk | ||
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