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This paper examines the causal relationship between stock market performance and foreign exchange market in Egypt over the period 2009–2016. The study period is divided into two sub-periods: pre- and post-January 25th Egyptian revolution (ER). The reason is to examine how this revolution affects the causal relationship between the two markets' performance.

In this study, the daily basis data are used to enable good and effective observation changes in the foreign exchange rate and stock market performance over time. Stock market indexes and stock market capitalization are used as proxies for stock market performance. Further, the Egyptian pound to US$ exchange rate is used as a measure for foreign exchange market performance. The study analysis is done in stages. The first is to check the variables' stationarity for the pre- and post-revaluation. The second is to examine the cointegration among the variables. The third is to run vector autoregression (VAR) estimates, after which VAR Granger causality tests are employed.

The results show that the data are not stationary at their levels but stationary in their first difference level while there is no cointegration in the long-run among the variables in both sub-periods. Further, findings indicate that, in the pre-January 25th revolution period, there is a significant causal relationship between the foreign exchange market and stock market indexes and a significant causal relationship between market capitalization (CAP) and exchange rate at the 1% level. However, in the post-January 25th revolution period, the study does not find a significant causal relationship between foreign exchange market and stock market indexes and capitalization.

As this study focuses on the causal relationship between foreign exchange and stock markets before and after the 25th January Revolution, other macroeconomic variables such as consumer price index, interest rate and GDP were excluded for the comparison purposes with other studies. Further research is suggested to include them in the analysis to find out its effect on the performance of stock market and foreign exchange market.

The existence of long-run bidirectional causality means that portfolio managers and hedgers may have improved their understanding regarding the dynamic relationship between foreign exchange market and stock market performance as this may help them to plan and implement suitable hedging strategies to guard against currency risk in future crises or events. Investors, fund and portfolio managers and policymakers should give much attention to these event-specific interactions when they make capital budgeting decisions and implement regulation policies. Furthermore, our results may allow portfolio managers, investors and policymakers to assess the importance of informational efficiency for both markets.

This paper is an original contribution to the literature that concerns the causal relationship between stock market and foreign exchange market in the period of political instability and social unrest such as the January 25th Revolution in one of the emerging markets, namely Egypt.

Modern slavery is a significant issue addressed in the United Nations’ Sustainable Development Goals. In 2015, the UK Government introduced the Modern Slavery Act as part of a crucial broader set of initiatives that aimed to attack modern slavery. Regardless of the initiatives taken to mitigate this risk, little is known about how modern slavery disclosure affects corporate financial performance (CFP). Hence, our study aims to examine the impact of MSD on CFP empirically. It also examines the moderating role of governance quality on the MSD–CFP nexus.

We use computer-based content analysis to assess MSD levels for a sample of non-financial companies' annual reports. We use regression analysis to test our research hypotheses for a sample period of 2013–2019 for Financial Times Stock Exchange (FTSE) All-Share non-financial UK firms. Our sample consisted of 786 observations.

We provide new empirical evidence that externally communicating modern slavery information in annual report narratives is associated with CFP. The finding is in line with stakeholder theory, which states that engaging in social responsibility practices and responding favourably to the stakeholders’ interests and desires would enhance corporations’ reputation and ultimately improve their performance. We further highlight the role of governance quality in this nexus and find that the interaction between governance quality and MSD is negative, suggesting a replacement effect.

Our findings can be of interest to government, policymakers and other stakeholders. Policymakers need to establish a new, broader set of enforcement arrangements for MSD that may lead to better CFP.

Our research idea is original as it links emerging global issues (e.g. MSD) with traditional corporate concerns (financial performance) in a way that is likely to provide new insights as well as managerial and policy implications.

The purpose of this paper is to develop and test a model that focuses on the cultural and religiosity drivers and satisfaction outcomes of consumer perceptions about online retailers’ deceptive practices. It specifically investigates: the role of cultural orientation and religiosity in forming consumer ethical ideology; the link between the consumer’s ethical ideology and his/her perceptions regarding the deceptive practices of online retailers; and the effect of perceived deception on consumer satisfaction.

The paper is based on a quantitative survey conducted among 468 Egyptian consumers aged 18 and above. These were measured on a five-point Likert scale. To test the hypothesized relationships among the constructs of the model, structural equation modelling was employed.

The study confirmed that power distance, uncertainty avoidance, and religiosity are important in forming idealistic attitudes, while both individualism and masculinity lead to an egoistic attitude. Idealism was observed to have a positive association with consumer perceived deception, while egoism was found to negatively affect consumer perceived deception. Finally, it was revealed that the perceptions of consumer about the deceptive practices of online retailing decrease consumer satisfaction.

This research puts together in a single model both antecedents and outcomes of the perceptions of consumer about the deceptive practices of online retailing; concurrently examines the role of cultural orientation, religiosity, and ethical ideology of the consumer in forming ethical attitudes and responses; focuses on the instrumental role of cultural characteristics on consumer ethical perceptions from the perspective of the individual, rather than the society as a whole; and provides useful examination of the effects of perceived deception on consumer satisfaction.

Financial theory predicts that a change in an exchange rate should affect the value of a firm or an industry. To a large extent, past research has not supported this theory, which is surprising especially after considering the substantial exchange rate fluctuations over the three decades. This study seeks to extend previous research on the foreign exchange rate exposure of UK nonfinancial companies at the industry level over the period 1981‐2001.

In this study, exchange rate exposure is defined as the change in the value of the firm or industry due to the changes in exchange rates. This study differs from previous studies in that it considers the impact of the changes (actual and unexpected) in exchange rates on firms’ or industries’ stock returns. The approach employs OLS model to estimate foreign exchange rate exposure of 364 UK nonfinancial companies over the period 1981‐2001. All data are collected from the Datastream database.

The findings indicate that a higher percentage of UK industries are exposed to contemporaneous exchange rate changes than those reported in previous studies. There is also evidence of significant lagged exchange rate exposure. This lagged exchange rate exposure is consistent with findings in previous studies that may exist some market inefficiencies in incorporating exchange rate changes into the returns of firms and industries.

Future research in the area should consider additional factors that might affect a firm's and an industry's exposure to exchange rate changes.

The findings of the study have interesting implications for public policy makers who wish to understand links between policies that affect exchange rates and relative wealth affects. These findings should also be of particular importance to investors who under or overweight large multinational corporations.

The study extends previous research on foreign exchange rate exposure of UK companies.

In the last two decades, a number of studies have examined the risk management practices within nonfinancial companies. For instance, some studies report on the use of derivatives by nonfinancial firms. Yet, another group of researchers has investigated the determinants of corporate hedging policies. These and other studies of similar focus have made important contributions to the literature. This study sheds light on derivatives use and risk management practices in the UK market.

This paper presents the results of a questionnaire survey, which focused on determining the reasons for using or not using derivatives for 401 UK nonfinancial companies. Furthermore, it investigates the extent to which derivatives are used, and how they are used.

The results indicate that larger firms are more likely to use derivatives than medium and smaller firms, public companies are more likely to use derivatives than private firms, and derivatives usage is greatest among international firms. The results also show that, of firms not using derivatives, half of firms do not use these derivative instruments because their exposures are not significant and that the most important reasons they do not use derivatives are: concerns about disclosures of derivatives activity required under FASB rules, and costs of establishing and maintaining derivatives programmes exceed the expected benefits. The results show that foreign exchange risk is the risk most commonly managed with derivatives and interest rate risk is the next most commonly managed risk. The results also indicate that the most important reason for using hedging with derivatives is managing the volatility in cash flows.

As with other survey research, a major limitation is that responses might represent personal opinions. We cannot verify that the opinions coincide with actions. We suggest that further research could improve the understanding of firms’ derivatives use by including more detailed data, different time spans, and larger samples.

To highlight the extent of derivatives usage and risk management practices in UK nonfinancial companies.

Despite the increasing utilization of webpages for the purposes of information seeking, customers’ concerns have become a crucial impediment for online shopping. The purpose of this paper is to examine the influence of the effectiveness of web assurance seals services (WASS) and customers’ concerns on customer’s willingness to book hotels through perceived website trust and perceived value.

A questionnaire was administrated to measure the study variables. Using partial least squares–structural equation modeling approach to analyze the data collected from 860 users of online hotel websites.

The results indicate that WASS influence positively on perceived website trust and negatively on consumers’ concerns. As well as, perceived value and trust play a mediating role in the link between WASS and consumers’ concerns and their intentions. Finally, perceived website trust and perceived value have greater effect on intention to book hotel for low-habit consumers.

This study ignored the cross-culture issue as it concentrates on the customers from developing countries, so further research may need to compare between two or more than two samples from different societies that could give a significant insights. Second, this study stresses on the WASS to predict customers booking intentions that indicates significant results, so further research may need to examine the role of online reviews as a predictor of customers purchase decision as well.

To the authors’ best knowledge, this is the first empirical research that investigates and examines the influence of the effectiveness of WASS and consumers’ concerns on consumers’ intentions through perceived value and trust. This research also investigates the moderating role of habit in the link between perceived website, perceived value and consumers’ intentions.

The purpose of this paper is to identify the dimensions of e-retailing ethics from the consumers’ perspective and to develop a reliable and valid measurement instrument.

The paper is based on a quantitative survey conducted among Egyptian consumers aged 18 and above. These were measured on a five-point Likert scale. The reliability and validity of this six-factor scale are verified using empirical data collected randomly from Egyptians’ online consumers. Structure equation modelling used to test the suggested model.

The results showed that buyer perceptions about seller ethics (BPSE) is a second order construct composed of six factors (e.g. privacy, security, reliability, non-deception, service recover, and shared value). The results also showed that the BPSE has strong predictive capability in relation to online customer satisfaction and repurchase intention.

This project is one of the first empirical studies that develop a reliable and valid measurement instrument of BPSE. The findings provide several important theoretical and practical implications for online retailing and academic researchers as well as making a significant contribution to the body of knowledge in the online retailing context.

The purpose of this study is to examine the impact of corporate governance attributes of listed Egyptian companies on the propensity (adoption) and comprehensiveness (quality) of corporate internet reporting (CIR) practices.

This study uses archival data from the largest (top) 100 listed companies on the Egyptian Stock Exchange (EGX 100). Corporate governance attributes are captured by ownership structure (free float, managerial ownership, government ownership) and board of directors' structure (board size, board independence, CEO‐chair duality). Empirical models are used to estimate the effects of these attributes on the propensity, content, presentation, and overall comprehensiveness of CIR.

The results of this study indicate mixed effects of governance attributes on the choice to adopt CIR and its quality. The results from the Binary Logistic Regression suggest that Egyptian companies with greater (less) ownership dispersion, managerial ownership, governmental ownership, and (board independence) are more likely to adopt CIR. On the other hand – and as revealed by the seemingly unrelated regressions – among CIR companies those with greater (less) ownership dispersion, board size (governmental ownership), and (board independence) have more comprehensive CIR.

This study extends the relatively limited research on the effects of corporate governance and CIR in emerging markets. The study contributes to this literature by demonstrating how corporate governance attributes affects the choice to adopt CIR disclosure practices and the level of its quality in an emerging market such as Egypt.

The purpose of this paper is to investigate the exchange rate exposure of UK non‐financial companies from January 1981 to December 2001.

The study employs different exchange rate measures and adopts an equally weighted exchange rate. The analyses are conducted at the firm level. All analyses are conducted by regressing the firm's exchange rate exposure coefficients on its size, foreign activity variables and financial hedging proxies over the whole sample period.

The findings show that a higher percentage of UK non‐financial companies are exposed to exchange rate changes than those reported in previous studies. Generally, the results provide a stronger support for the suggested equally weighted rate as an economic variable, which affects firms’ stock returns. The results also show a high proportion of positive exposure coefficients among firms with significant exchange rate exposure, indicating a higher proportion of firms benefiting from an appreciation of the pound. Finally, the results also indicate evidence that firms’ foreign operations and hedging variables affect their sensitivity to exchange rate exposure.

This study provides important implications for public policymakers who wish to understand links between policies that affect exchange rates and relative wealth effects.

The empirical results of this study should help investors to examine how common stock returns react to exchange rate fluctuations when making financial decisions, and prove useful for financial managers when measuring exposure to foreign exchange rate changes.

The purpose of this paper is to examine the effect of firm size and foreign operations on the exchange rate exposure of UK non‐financial companies from January 1981 to December 2001.

The impact of the unexpected changes in exchange rates on firms’ stock returns is examined. In addition, the movements in bilateral, equally weighted (EQW) and trade‐weighted and exchange rate indices are considered. The sample is classified according to firm size and the extent of firms’ foreign operations. In addition, structural changes on the relationship between exchange rate changes and individual firms’ stock returns are examined over three sub‐periods: before joining the exchange rate mechanism (pre‐ERM), during joining the ERM (in‐ERM), and after departure from the ERM (post‐ERM).

The findings indicate that a higher percentage of UK firms are exposed to contemporaneous exchange rate changes than those reported in previous studies. UK firms’ stock returns are more affected by changes in the EQW, and US$ European currency unit exchange rate, and respond less significantly to the basket of 20 countries’ currencies relative to the UK pound exchange rate. It is found that exchange rate exposure has a more significant impact on stock returns of the large firms compared with the small and medium‐sized companies. The evidence is consistent across all specifications using different exchange rate. The results provide evidence that the proportion of significant foreign exchange rate exposure is higher for firms which generate a higher percentage of revenues from abroad. The sensitivities of firms’ stock returns to exchange rate fluctuations are most evident in the pre‐ERM and post‐ERM periods.

This study provides important implications for public policymakers, financial managers and investors on how common stock returns of various sectors react to exchange rate fluctuations.

The empirical evidence supports the view that UK firms’ stock returns are affected by foreign exchange rate exposure.