The Impact of Covid-19 pandemic on Bank Performance: Evidence from Listed Banks on the Egyptian Stock Exchange | ||||
| Delta University Scientific Journal | ||||
| Article 3, Volume 4, Issue 1, April 2021, Page 25-35 PDF (550.02 K) | ||||
| Document Type: Review articles | ||||
| DOI: 10.21608/dusj.2021.205891 | ||||
 View on SCiNiTO | ||||
| Authors | ||||
| Mohamed Zaki Balboula1; Maha Saad Metawea2 | ||||
| 1Department of accounting, Faculty of Business Administration, Delta University for science and technology, Gamasa, Egypt | ||||
| 2Department of Business Administration, Faculty of Business Administration, Delta University, Gamasa, Egypt | ||||
| Abstract | ||||
| This study investigates the impact of Covid-19 pandemic on the risk and return of Egyptian banks. It measures bank performance using stock volatility (as a measurement of risk) and stock returns. As well as, it measures Covid-19 using "confirmed new cases", "confirmed new deaths" and "mortality growth rate" on a weekly basis. We use one-year lagged leverage, bank size and return on assets as control variables. The study applies Pooled OLS regression, Pearson correlation and Paired sample t-test in order to statistically investigate the proposed hypotheses. The sample consists of 12 banks listed on the Egyptian Stock Exchange (out of 14), covering two periods of equal length of time, sixteen weeks before and during the Covid-19 pandemic. Our analysis reveals that new cases, new deaths and mortality growth rate of Covid-19 are negatively (positively) related to stock returns (volatility). However, Egyptian banks' stock returns and volatility are more sensitive to new cases and deaths of Covid-19 than mortality growth rate. | ||||
| Keywords | ||||
| Covid-19; Stock return; Stock return volatility; Banking system | ||||
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