The Impact of Foreign Currency Exchange Rate Changes on Firm Value (An Applied Study on Companies Listed on the Egyptian Stock Exchange)

Mohamed, Monzer Mohamed Ali; Abd El-Aziz, Ahmed Sayed Tokhy

doi:10.21608/masf.2024.374399

The Impact of Foreign Currency Exchange Rate Changes on Firm Value (An Applied Study on Companies Listed on the Egyptian Stock Exchange)

نوع المستند : المقالة الأصلية

المؤلفون

¹ Teaching Assistant at Accounting and Audit Section Higher Institute of Cooperative and Management Studies- Doctoral researcher, Faculty of Commerce Ain Shams University

² Teaching Assistant at Business and Finance Section Higher Institute of Cooperative and Management Studies- PHD degree in Business - Faculty of Commerce Ain Shams University

10.21608/masf.2024.374399

المستخلص

Purpose– This research aimed to identify the impact of foreign currency exchange rate changes on firm value, and the research addressed monitoring some of the potential effects of foreign currency exchange rate changes on firm value in the Egyptian Business Environment.
   The study hypothesis states that: - The main hypothesisthere is no statistically significant relationship between foreign currency exchange rate changes and firm value. This study depended on the (Tobin's Q) model to measure the firm value the data were statistically analyzed and the study hypotheses were tested using descriptive statistics, Pearson correlation coefficient, and simple linear regression.
   Design/methodology/approach– The researchers will be relying on a combination of inductive and deductive approaches to carry out two types of study are as follows: An Analytical study: - through the analysis of books, periodicals, theses related to exchange rate changes and firm value - An applied study: - The study period is set for 2014-2023 to test hypotheses and the study sample was selected from the most active companies in the Egyptian Stock Exchange. A total of 82 companies were selected. Data was analyzed using (Eviews v.10)
   The study results and statistical findings show that Foreign Currency exchange rate changes effect on the firm value of the firms. The study recommended that using new laws and legislation to overcome the consequences monetary policies changes on economy and conducting more academic research on Foreign Currency exchange rate‏ and its effect on financial reports user’s decisions

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