Investing in digital currencies and its impact on the liquidity of companies listed on the stock market before and after Covid-19

Abstract

The aim of our current study is to highlight the importance of investing in digital currencies in activating the stock market and to identify the volume of investment in digital currencies and their relative importance to companies listed in the stock market and according to each company listed in the market, and to know the impact of investment in digital currencies on the turnover of a sample of Listed companies in the stock market and identify the reasons and obstacles that prevent the promotion of investment in digital currencies in the stock market.

The study sample consisted of companies listed on the American Stock Exchange, and among these companies (INTUIT, AT&T) for the period from (1/1/2017 - 30/6/2019) before the spread of the Corona virus, and then from (1/7/2019 - 31/12/2021). after the spread of the Corona virus, and the financial statements of each company listed on the American Stock Exchange were relied upon, as well as the monthly data on the liquidity index (share turnover rate) for each company listed on the market.

The study was conducted on analyzing data for a sample of selected companies listed on the American Stock Exchange before and after the spread of the Corona virus to find out and compare the results before the spread of the Corona virus and after the spread of the virus among companies that deal in bitcoins, and the statistical package for social sciences program (SPSS v.23) was used for the purpose Data analysis and extraction of results related to correlation and multiple regression, and) EXCEL 2010 program) to extract the relative importance of data analysis for each company.

One of the most important conclusions reached by our current study is that investing in digital currencies is profitable if the many obstacles affecting investment in digital currencies have been studied and addressed, the most important of which is related to the legal cover of the currency as well as the rapid fluctuations in its prices in addition to the difficulty of providing information security necessary to complete financial transactions with these currencies.

As for the most important recommendations of our current study of researchers and future studies, it is necessary to seek and continuity of work to find the appropriate mechanism through which to provide legal and official cover for dealing with some encrypted currencies known for their capacity and the wide scope of direct trading in them in order to preserve the rights of dealers with these currencies and reduce the rapid fluctuations in the prices of these currencies, and thus Finding the regulatory mechanism based on correct scientific bases.