Percorrer por autor "Charfadi, Mohamed Aziz"
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- Market risk and profitability of the industrial sector a comparison between Tunisia and PortugalPublication . Charfadi, Mohamed Aziz; Monte, Ana PaulaThe figures on the European economy in 2022 highlight the most sudden and brutal collapse in history. Beyond the suffering and humanitarian crisis from Russia’s invasion of Ukraine, the entire European economy will feel the effects of slower growth and faster inflation. Impacts will flow through three main channels: I) higher prices for commodities like food and energy will push up inflation further, in turn eroding the value of incomes and weighing on demand; II) neighboring economies in particular will grapple with disrupted trade, supply chains, and remittances as well as an historic surge in refugee flows; and III) reduced business confidence and higher investor uncertainty will weigh on asset prices, tightening financial conditions and potentially spurring capital outflows from emerging markets. So many Portuguese entrepreneurs want to explore new investment opportunities where there is better governance, anticipation of sustainable growth, better quality of production factors, higher return on capital, ability to repatriate profits to fight this inflation. So our research aims to study and compare the profitability and market risk of the stocks of industrial production sector between companies of Tunisia and Portugal, as these sectors (from both countries) are facing foreign competition such as the enlargement of the European Union to Eastern Europe, the end of multi-fiber agreements that restricted imports of textiles from China and India in particular and the establishment of a free trade area with the European Union to expand 2658.20 TND-million (equivalent to 833.54 billion Euros) against 211 billion Euros for the Portuguese industrial production sector. A sample of 8 companies (4 for each country) was selected and collected financial data for the last four years. Data on Portuguese companies was collected from SABI database. To answer the research questions it was used non parametric tests and linear regression analysis. The market risk of the companies was calculated using the beta and the Value-at-Risk by parametric method (Delta normal method) and non-parametric method – the historical simulation. The companies from Portuguese industrial production sector have higher market risk and it explains the variability in companies financial performance (either measured by ROE, ROA or ROS) at least 35% and maximum 45%. For Tunisian sample, it has lower market risk and there is only statistically significant linear correlation between VaR and performance measured by ROA or ROS, but the determination coefficient are lower (varying from 20% to 24% approximately). The macroenvironment of the companies may explain this behaviour.