The Middle East financial markets have experienced several unexpected volatility shifts during the last two decades had recorded a serious impact on these markets and caused a financial turmoil that has elevated the uncertainties in the region. In view of this, more empirical findings should be learned and documented for future benefits. As one of the affected countries, Jordan was chosen as a case to provide empirical insight on the matter. This paper analyzed the behavior of Jordan's stock market (Amman Stock Exchange, ASE) during the intervals of high uncertainty. It highlighted the impact of volatility on this market in terms of its efficiency and returns, during 2004-2012 periods, by utilizing the iterated cumulative sums of squares (ICSS) algorithm, GARCH and GARCH-M models. Sudden changes in volatility seem to arise from the evolution of emerging stock markets, exchange rate policy changes and financial crises. Evidence also reveals that when sudden shifts are taken into account in the GARCH models, the persistence of volatility is reduced significantly in every series. Research results provided significant empirical evidence for positive risk-return relationship in the stock exchange. Moreover, this study also found that the stock market, across all sectors, was more sensitive to global news events as compared to ISSN 1941-899X 2015 www.macrothink.org/jmr 133 the local events. The asymmetrical responses to good and bad news were also an important characteristic of the ASE market behavior. Journal of Management Research
The main objective of this research concerns the detailed information advocated by data to the latest developments in the volume of external investments in the Kingdom and their effects on Jordan’s economic growth. The study problem stems from the challenges facing the national economy in general and the role of none Jordanian investments and their effect on upgrading the national economic growth. In this study, researchers have used the descriptive analytical methods through the financial and economic reports and other relevant information available in the annual reports and publications issued by the financial institutions via measuring the effect of international direct investment(IDI) in boosting the national gross domestic product(GDP) in Jordan for 2005-2015 period. Research hypotheses were tested by using Pearson’s correlation formula (IDI) and (GDP). The correlation negative (inverse). Analysis results revealed that the correlation between these investments are not linked to its (GDP) alone, thus, researchers have attributed it to several other variables which might have greater impact on GDP and recommend that Jordan should develop long-term strategies for investments in several productive areas characterized by investment sustainability, rather than directing investments to short-term areas seeking rapid profits. Also taking advantage lessons of successful countries in attracting foreign investments such as Malaysian, Korean and Thai experiences and should encourage specialized studies to examine further variables that might have strong impacts on Jordan's economic growth.
Forecasting foreign exchange prices drives the concerns of financial investors and occupies the minds of financial analysts as well. Most Current forecasting formulas used to employ individual financial factors, either fundamental or technical. The purpose of this study is to test the effect of combined financial factors in forecasting future exchange prices of world currencies. This study used one fundamental factor and two technical factors merged in one mathematical formula. Researchers have merged interest rate, historical volatility, and moving average in one formula. Empirical tests included correlation, Covariance tests to measure the magnitude of the linear relation between historical and computed exchange rates; F.Test aimed to show whether the two sets of historical and computed data have the same standard deviation at the specified confidence levels. Data included historical and computed sets of exchange prices of Swiss Franc, Sterling Pound, European Euro, and Japanese Yen against U.S.Dollar.Study period extended for ten years, i.e. 2000-2008.Results reflected high correlation and low covariance and accepted F.test; there were some biases due to extraneous factors which had affected the exchange rates for certain times during the testing period.
This paper aimed to evaluate the impact of inflation prospects on investments of Industrial Companies in Jordan. The main objective is to elaborate the most relevant and feasible techniques to improve the prospects for developing the invests in the industrial sector. In the introduction part, inflation prospects and selected methods of analysis via available information resources were defined. It is well known that inflation is a prominent economic phenomenon in the modern world. The financial inflation is the prime objective of present study because it is primarily concerned with the investment process, especially to consider that inflation almost affects both the foreign and domestic direct investments by almost equal rates. The topic of industrial development is highly concerned with process of investment in Jordan. This research deals with the inflation effect on investment outcomes of most industrial companies in Jordan. This study will contribute to enrich the existing literature with financial structure and investment decisions via monetary inflation represented by capital, commodity and imports within the set of industrial companies. The study tool is a questionnaire that collected the needed data aiming to elaborate the preset conclusions of this research. Pearson correlation testing program was implemented to measure the relation between inflation and investment procedures. Overall outcomes revealed that the lowest coefficient observed between imports inflation. and all other variables were reversed, most increases in imports inflation were almost stabilized by the decrease of the other variables. While all other correlation values were positive.
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