Investing in cryptocurrencies and its reflection on the liquidity index of shares of companies listed on the stock market on the stock market– An analytical study of a number of companies listed on the New York Stock Exchange before and after COV.19
A Thesis submitted to
Board of the College of Administration and Economics University of Karbala
Is part of the requirements for obtaining a master’s degree in financial Banking Sciences Department
By
Ayat Salih Hussin AL-hilawy
Supervision by
Prof. Dr. Haidar Yunis Khadem Al- Musawi
Abstract
The great developments of communication technology and the information revolution have contributed to the introduction of the concept of the digital economy, which has contributed to the emergence of a new form of financial work represented by the spread of electronic payment and money transfer through advanced payment and settlement systems, which have contributed greatly to the emergence of digital currencies that have had the effect of bringing about radical developments in the monetary system. Global.
The goal of our current study is to highlight the importance of investing in cryptocurrencies in activating the stock market, identifying the volume of investment in cryptocurrencies and their relative importance for companies listed on the stock market, according to each company listed on the market, and knowing the impact of investing in cryptocurrencies on the trading volume of a sample of companies. listed on the stock market, as well as a statement of the impact of investment in cryptocurrencies on the stock turnover rate for a sample of companies listed on the stock market and identifying the reasons and obstacles that prevent the promotion of investment in cryptocurrencies in the stock market.
The study sample represented some companies listed on the New York Stock Exchange, including Microsoft, INTUIT, and AT&T for the period from (1/1/2017 – 6/30/2019) before the spread of the Corona virus and then from (7/1/2019 – 12/31/2021) after the spread of the Corona virus, and reliance was placed on the financial statements of every company listed on the American stock market, as well as the monthly data on liquidity indicators (trading volume, share turnover rate) for each company listed on the market.
The study was conducted to analyze data for a sample of selected companies listed on the New York Stock Exchange before and after the spread of the Corona virus to know and compare the results before the spread of the Corona virus and after the spread of the virus among companies that deal in Bitcoin, and the Statistical Package for the Social Sciences (SPSS v) program was used for the purpose Analyzing data and extracting results related to correlation and multiple regression, and the EXCEL 2010 program to extract the relative importance of analyzing data for each company.
One of the most important conclusions reached by our current study is that investing in cryptocurrencies is profitable if the many obstacles affecting it are studied and addressed, the most important of which are related to the legal cover of the currency as well as the rapid fluctuations in its prices, in addition to the difficulty of providing the information security necessary to complete financial transactions in these currencies.
Our study also found that despite the rapid spread of cryptocurrencies at the time of the spread of the Corona virus, and many companies around the world have resorted to dealing in cryptocurrencies, the most famous of which is (Bitcoin), dealing with them is still on a limited scale globally, and this may be due to. The reason is the lack of legal or official cover for it, and it may also be due to reasons related to modern financial technology in some developing countries.
The most important recommendations of the current study are the necessity of specialists and analysts working on the currency side, increasing studies, and continuing work due to the necessity of providing a real and comprehensive database that is available on websites. This database includes comprehensive information that helps keep pace with developments in financial technology, such as preparing maps that show the locations of the spread of cryptocurrencies, monitoring them, and controlling them.
Likewise, if the goal of companies (AT&T, INTUIT, Microsoft) and other companies and individual investors is to provide a national electronic system for payments that helps in rapid economic recovery from crises such as the Covid-19 crisis, and allows individuals and institutions to keep financial assets safely and more efficiently, and it becomes an option. Issuing a more useful currency, taking into account that issuing a virtual encrypted currency requires a widespread culture of using electronic payment methods and a decrease in the use of cash in society, especially in developing countries, including Iraq. Until this happens, it becomes an option to issue an encrypted currency for institutions based on distributed ledger technology to settle transactions. Between banks thus making financial systems faster, inexpensive and safer.
There is also the need to shed light on the information and financial technology sector for financial markets in countries of the world, especially developing countries, including Iraq, because financial technology represents the real gateway to achieving development and preparing, preparing and training specialists in the information field who are able to develop the stock market in light of modern financial technology.
Keywords: Cryptocurrencies, Stock Market
