424635

The Effect of Financial Distress on Financial Performance: (An Empirical Study on The Egyptian Companies)

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Last updated: 04 May 2025

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Abstract

Many companies have financial distress, especially in COVID-19, that's why this research needs to provide an early warning for the companies to know whether they are in financial distress or not. The sample includes 11 companies which are (TMG, Juhayna, EZZ Steel, GB auto, Integrated Diagnostics Holding (IDH), MM Group for industry and international trade, Telecom Egypt, Sixth of October Development and Investment (SODIC), ElSewedy Electric, EFG-Hermes holding, and Fawry for electronic payment) according to the common between of them as the magazine (the Forbes Middle East) list from “The 50 Most Powerful Companies in Egypt for 2022" as they include the most profitable and highest companies in terms of market value and assets. The results show that During the COVID-19 pandemic, several companies experienced varying impacts on their operations as TMG, SODIC, Juhayna, EZZ Steel, and GB Auto faced challenges due to shortages in raw materials, coupled with disruptions in supply chains. These obstacles delayed productivity, which had a negative financial impact on the Financial Performance of the companies. On the other hand, companies such as Fawry, Telecom, and IDH thrived during this period. Fawry capitalized on the increased demand for digital payment solutions, while Telecom benefited from heightened reliance on communication services Additionally, IDH experienced positive growth as a result of the surge in demand for healthcare products and services.

DOI

10.21608/jaebs.2025.424635

Keywords

financial distress, Financial Performance, COVID-19, Liquidity, profitability, Return on Asset, Corporate Governance

Volume

1

Article Issue

2

Related Issue

55345

Issue Date

2025-04-01

Receive Date

2024-06-03

Publish Date

2025-04-27

Page Start

1

Page End

26

Print ISSN

3009-7533

Online ISSN

2974-3680

Link

https://jaebs.journals.ekb.eg/article_424635.html

Detail API

http://journals.ekb.eg?_action=service&article_code=424635

Order

424,635

Type

Original Article

Type Code

2,997

Publication Type

Journal

Publication Title

Journal of Advances in Economics and Business Studies

Publication Link

https://jaebs.journals.ekb.eg/

MainTitle

The Effect of Financial Distress on Financial Performance: (An Empirical Study on The Egyptian Companies)

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Type

Article

Created At

04 May 2025