International Journal of Business and Economic Development

Purpose of the research: The study aims to examine the relationship between Foreign Portfolio Investment (FPI) flows and the stock market in Egypt from FY2004/05 to FY2023/24, focusing on the EGX 30 Index. Given Egypt's evolving economic landscape, understanding this relationship is crucial for policymakers, investors, and financial institutions seeking to manage market risks. By analyzing quarterly FPI & EGX30 data from the Central Bank of Egypt & Egyptian Exchange, the research aims to identify patterns, causality, and policy implications. The findings will contribute to academic discourse on emerging markets and enhance understanding of strategies for stabilizing Egypt’s financial market amid global economic uncertainties.

Methodology: The research deploys an ARDL model to capture short and long-term effects of FPI, interest rates, and exchange rates on the EGX30 Index.

Results: In the short run, the EGX30 Index shows a strong and statistically significant relationship with its past values, indicating market momentum. Foreign portfolio investment has a positive but statistically insignificant effect on the stock market. Interest rates exhibit a positive and marginally significant impact, suggesting some influence on investor behavior. The exchange rate has a negative but statistically insignificant effect in the short term.

In the long run, foreign portfolio investment continues to show a positive yet statistically insignificant effect, reflecting volatility and external risk factors. Interest rates demonstrate a strong positive and marginally significant relationship with the stock market, while the exchange rate shows a strong, positive, and statistically significant long-term impact, highlighting the influence of currency depreciation on export-driven stocks.

Conclusion: Exchange rate depreciation had a strong positive impact, especially after the 2016 floatation and recent 2022–2024 devaluations, as it boosted export-driven stocks on the EGX.  Foreign portfolio investment was unstable and statistically insignificant, reflecting Egypt’s recent FPI volatility and the challenges of political and currency risks.

This research explores the connection between the diversity of boards of directors and the performance of firms within the realm of publicly traded companies in Egypt. As the practices of corporate governance continue to evolve, particularly in developing markets, the composition and diversity of boards have gained significance in influencing organizational results. A varied board composition, encompassing factors such as gender, culture, and educational background, can affect decision-making processes, strategic supervision, and ultimately, the performance of the firm. In this study, firm performance is assessed through three commonly recognized financial metrics: Return on Assets (ROA), Return on Equity (ROE), and Earnings Per Share (EPS). The objective of this research is to empirically investigate the hypothesis that board composition diversity significantly impacts firm performance. By shedding light on how governance frameworks influence financial results, this study adds to the broader discourse on corporate responsibility and sustainable value creation, as well as providing practical implications for policymakers, regulators, and corporate stakeholders in comparable economic contexts.