The Impact of Macroeconomic Variables on Stock Price Change Percentage for the ESG Listed Companies in Egypt

Abstract

This study was conducted to see the impact of macroeconomic factors, Gross domestic product, interest rate, inflation rate, money supply and the exchange rate on stock price change percentage of the ESG listed companies according to the approach of Arbitrage Pricing Theory (APT). The data used in this research is secondary data from the central bank of Egypt and the Egyptian Stock Exchange. the total sample of this research are 20 out of 30 companies listed in The Egyptian Stock Exchange (EGX) for the period from 2016 to 2020. The analysis technique used descriptive statistics, correlation matrix and multi regression analysis. The results showed that macroeconomic factors especially interest rate and inflation have a significant negative impact on stock price changes of EGX30 ESG (Environment, Social and Governance) companies with a lower effect than traditional companies where their regression analysis showed percentage exceeding ours (16%). (Rageb, 2018) (Awd, 2015) Our main recommendation that all the companies within Egypt have to work hard to transform towards the ESG practices as from the results we have investigated it has low level of risks.