The Relationship between Cash Ratio and Firm Profitability Applied Study on Egyptian Stock Market

Authors

  • Heba Srour Associate professor of Finance, Business Department, Faculty of Commerce, Tanta University
  • Mohamed Srour Assistant professor of Accounting, Accounting Department, Faculty of Commerce, Tanta University

DOI:

https://doi.org/10.15379/ijmst.v10i3.1918

Keywords:

CaHR, ROA, ROE, Leverage, Financial Performance

Abstract

Purpose: This paper investigates the relationship between CaHR and firm financial profitability applying to the Egyptian stock market. Methodology:  OLS regression analysis is conducted to explain the 2 models used for a sample of (10) Egyptian Companies during the period between 2013 to 2021. The main hypothesis is tested H1: There is no a statistically significant relationship between CaHR and firm profitability. Findings: The independent variables (CaHR, Lev) have a negative effect on ROA-ROE, and the independent variables (size, AG) have a positive effect on ROA-ROE, but all independent variables have a statistically significant relationship on ROA-ROE, and thus the study's main hypothesis was rejected. Research limitations: The paper opens the area for future research by using a distinct dataset that includes the time period during and after the COVID-19 epidemic to capture the impact of covid-19 on the firm liquidity and profitability.

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Published

2023-09-11

How to Cite

[1]
H. Srour and M. . Srour, “The Relationship between Cash Ratio and Firm Profitability Applied Study on Egyptian Stock Market ”, ijmst, vol. 10, no. 3, pp. 2134-2145, Sep. 2023.

Issue

Vol. 10 No. 3 (2023): Continuous publication

Section

Articles

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