Journal Article

The Effect of Industry Specific Factors on the Profitability of Companies Listed in the Egyptian Securities Market

Hassaballa, Ahmed Fouad, Bishara, Shereen Fadel Fahmy

2020

Overview

This paper investigates the effect of industry-specific factors on the profitability of companies listed in the Egyptian securities market, presenting an empirical study designed to measure how sectoral characteristics influence financial performance. The authors argue that corporate profitability depends not only on managerial decisions or macroeconomic conditions but also on the nature of the industry in which firms operate, including competitive structure, capital intensity, risk levels, and market size. Employing an applied analytical approach, the study collected financial data from listed companies in Egypt, classifying them into sectors such as industry, services, banking, and insurance, and then analyzed profitability indicators such as return on assets, return on equity, and net profit margin. The findings reveal significant variations in profitability across sectors: capital-intensive industries tend to achieve lower profit margins compared to service-oriented sectors, while banks demonstrated greater capacity for stable returns due to the nature of their operations. The results also highlight market size and industry-specific risks as key determinants of profitability. The study concludes that understanding industry-specific dynamics is essential for investors and policymakers in making informed investment decisions, and that enhancing transparency in disclosing such factors can improve the overall efficiency of the Egyptian securities market. Abstract Written by Dar AlMandumh, 2025, Using AI

• Publisher: جامعة قناة السويس - كلية التجارة بالاسماعيلية
• Subject: الأسواق المالية / الربحية / سوق الأوراق المالية المصري