The impact of bank performance indicators on stock prices: An applied study in banks listed on the Egyptian Stock Exchange

Document Type : Original Article

Author

Economics Teacher - Canadian Institute of Engineering Technology and Management

Abstract

The study aimed to determine the impact of banking performance indicators (efficiency of marketing management, efficiency of profitability management, efficiency of risk management, Efficiency of liquidity management) on the share price of banks listed on the Egyptian Stock Exchange.
The researcher used the descriptive and analytical approach, and the study community was represented by all the 12 banks listed on the Egyptian Stock Exchange, and a sample consisting of five banks listed on the Egyptian Stock Exchange was selected, i.e. 41.66%. During the period between the two years (2017-2019), represented by the following: (Commercial International Bank, Qatar National Bank, National Bank of Kuwait - Egypt, Egyptian Gulf Bank, and Development and Housing Bank).
The annual reports of the banks during the period and which were published on the websites of the banks in the study sample, were relied on (15) views (5 banks for 3 years), and the trading bulletins published on the Egyptian Stock Exchange website.
The study found that there was a significant impact of the banking performance indicators (efficiency of marketing management, profitability management efficiency, risk management efficiency, liquidity management efficiency) on the share prices of banks listed on the Egyptian Stock Exchange.
The study recommended that the necessity to raise the efficiency of the Marketing Department in the banks listed on the Egyptian Stock Exchange, in order to increase the demand for bank shares and increase circulation in them.

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