العلاقة بين حوكمة الشركات وسيولة الأسهم - دراسة اختبارية على الشركات المساهمة المصرية The Relationship Between Corporate Governance and ‎Stock Liquidity - An Empirical Study in the Egyptian Listed Companies‎

This study examines the relationship between corporate governance and ‎stock liquidity in the Egyptian listed companies. Specifically, the researcher ‎investigates the impact of corporate governance mechanisms (using four ‎mechanisms, they are: board size, board independance, CEO duality, audit ‎office size, managerial ownership and institutional ownership) on stock ‎liquidity measured by (stock turnover and liquidity ratio), and investigate ‎the impact of each mechanism on stock liquidity. The study investigates ‎hypotheses on a sample of 125 Egyptian companies listed on Cairo and ‎Alexandria stock exchange for the years 2012 to 2016. Using regression ‎analysis, The results indicate that there is a negative relationship between ‎the size of the board of directors and the liquidity of shares. This may be ‎due to the fact that companies with fewer board members facilitate ‎coordination and communication among their members in a way that ‎improves the quality of the decision-making process within the company, ‎and thus increases transparency and quality. Financial reports, which means ‎investors are more willing to deal in the shares of these companies, which ‎means improving the liquidity of the shares. The study also found that there ‎is no relationship between the independence of the board of directors and ‎the rate of stock turnover. This may indicate that the inclusion of a majority ‎of non-executive members in the boards of directors of companies in the ‎board did not support their independence in carrying out their supervisory ‎duties towards the executive management. The study also found that there is ‎A positive relationship between the independence of the Board of Directors ‎and the liquidity ratio. This may indicate that the increase in non-executive ‎members on the Board of Directors helps in monitoring the company’s ‎financial report, and reduces administrative opportunism, which may reduce ‎the concealment of information and thus reduce information asymmetry and ‎thus increase Stock liquidity. The study also found that there is no ‎relationship between the dual role of the senior executive director, the size ‎of the audit firm, and stock liquidity. The study also found a negative ‎relationship between the percentage of managerial ownership and the ‎liquidity of shares, perhaps due to the assumption of immunization. The ‎researcher also found that there is a negative relationship between ‎institutional ownership and stock liquidity, and the reason for this may be ‎due to the imposition of the effect of speculation.‎