The Impact of Financial Strength Indicators on The Value of Banks Listed on the Egyptian Stock Exchange

Abstract

The aim of the research is to determine the impact of financial strength indicators measured by the following: (capital adequacy index and financial leverage, asset quality index, revenue and profitability indicators, management index, Z-Score index) on the value of banks listed on the Egyptian Stock Exchange.
The research community included a sample of five banks listed on the Egyptian Stock Exchange, the Commercial International Bank, Qatar National Bank, the Housing and Development Bank, the Egyptian Gulf Bank, the National Bank of Kuwait - Egypt, during the period (2017-2019).
Descriptive analytical. The data collection process was carried out by relying on the annual reports and trading bulletins of the banks, the sample of the research. The statistical program SPSS version 24 was relied upon to test the hypotheses using the multiple linear regression test.
The study found a significant impact of financial strength indicators measured by: capital adequacy index and financial leverage, asset quality index, revenue and profitability indicators, management index, Z-Score index, on the value of banks listed on the Egyptian Stock Exchange.
The study recommended the necessity of alerting the regulatory and supervisory bodies to setting more stringent indicators with regard to financial strength, and obligating banks to apply them.