Exchange rate volatility and tourism stock prices : evidence from Egypt

Other Title(s)

أثر تقلبات أسعار الصرف على أسعار الأسهم السياحية : دراسة تطبيقية على مصر

Author

Harb, Najla

Source

Journal of Association of Arab Universities for Tourism and Hospitality

Issue

Vol. 17, Issue 2 (30 Sep. 2019), pp.55-68, 14 p.

Publisher

Suez Canal University Faculty of Tourism and Hotels

Publication Date

2019-09-30

Country of Publication

Egypt

No. of Pages

14

Main Topic

Economics & Business Administration

Topics

Abstract EN

Tourism is a key stimulator of economic growth and foreign currency in Egypt.

As an export sector, it could affect and be affected by changes in exchange rate.

This paper investigates the dynamic relationship between exchange rate and tourism stock prices and examines the effect of exchange rate volatility on tourism stock prices in the Egyptian Exchange (EGX).

Exchange rate is proxied by the USD/EGP official values.

Granger causality test and ARCH/GARCH models are employed.

Results provide an evidence of a unidirectional causal relationship between the tested variables from exchange rate to tourism stock price.

The estimations of the GARCH model reveal that exchange rate variance accelerates stock price return variance, and depreciation in the EGP against USD enhances tourism stock performance.

Findings provide decision-makers, financial managers, and investors with a better understanding of how exchange rate volatility affects the stock performance of tourism companies in the EGX, and offer researchers new directions for future research.

American Psychological Association (APA)

Harb, Najla. 2019. Exchange rate volatility and tourism stock prices : evidence from Egypt. Journal of Association of Arab Universities for Tourism and Hospitality،Vol. 17, no. 2, pp.55-68.
https://search.emarefa.net/detail/BIM-997032

Modern Language Association (MLA)

Harb, Najla. Exchange rate volatility and tourism stock prices : evidence from Egypt. Journal of Association of Arab Universities for Tourism and Hospitality Vol. 17, no. 2 (2019), pp.55-68.
https://search.emarefa.net/detail/BIM-997032

American Medical Association (AMA)

Harb, Najla. Exchange rate volatility and tourism stock prices : evidence from Egypt. Journal of Association of Arab Universities for Tourism and Hospitality. 2019. Vol. 17, no. 2, pp.55-68.
https://search.emarefa.net/detail/BIM-997032

Data Type

Journal Articles

Language

English

Notes

Includes bibliographical references : p. 64-67

Record ID

BIM-997032