Analysis the Determinants of Market Stock Price Movements: An Empirical Study of Jordanian Commercial Banks

Abstract

Financial firms make up a substantial fraction of the domestic equity market. A number of studies subsequently used different conceptual and methodological approaches to model equity return of financial services firms. Movement of the stock price as the consequence of the movement of the micro and macroeconomic factors is strongly supported by the literature review. Amman Stock Exchange in Jordan is inefficient in weak form.The sample of study includes the 14 commercial banks of Amman Stock Exchange for the period 2005 -2008. Simple and multiple regression analysis is conducted to find out the relationship microeconomic factors with the stock price and found highly positive significant relationship between market price of stock and net asset value per share; market price of stock dividend percentage, gross domestic product, and negative significant relationship on inflation and lending interest rate but not always significant on some years of Amman Stock Exchange in Jordan.

Determinants of Share Price of Nepalese Commercial Banks

“…The other empirical studies viz. Taulbee (2005), Nawazish (2008), Al-Shubiri (2010), Sharma (2011), Khan and Amanullah (2012), Srinivasan (2012), Malhotra and Tandon (2013), Almumani (2014) among others reveal that various factors in different markets determine the share price. Determining share prices is a complex and conflicting task.…”

Retail Investors’ Responsibilities in Stock Market Imperfection in Bangladesh: An Empirical Study

“…& Roulstone (2004) concluded that market prices of the stock depends on demand-supply forces of a particular security in the stock market . Several researchers also concluded that accounting reporting influenced the market value of corporate stock (Svensson & Larsson, 2009;AL-Shubiri, 2010;Sharma, 2011;Andriantomo & Yudianti , 2013 ;Bhatt & Sumangula, 2012 ;Halonen, Pavlovic and Persson , 2013). Besides accounting information, some macro and micro economic factors also affect market value of shares (AL-Shubiri , 2010).…”

“…Several researchers also concluded that accounting reporting influenced the market value of corporate stock (Svensson & Larsson, 2009;AL-Shubiri, 2010;Sharma, 2011;Andriantomo & Yudianti , 2013 ;Bhatt & Sumangula, 2012 ;Halonen, Pavlovic and Persson , 2013). Besides accounting information, some macro and micro economic factors also affect market value of shares (AL-Shubiri , 2010). Gross domestic products, interest rates, current account, and employment have an impact on stock prices movement (Kurihara, 2006).…”

Micro-Economic Determinants of NAV of Islamic Equity Unit Trust Funds in Malaysia: An ARDL-Bounds Tasting Approach

“…The existing literature on the equity market show that the price efficiency of equity market has been examined by studying the relationships between the micro, macroeconomic factors and the equity share prices (Aug & Chiona, 2010;Shubiri, 2010;Nazir et al, 2010;Buyuksalvarci, 2010;and Pilinkus, 2010). Govindarajan et al, 2012 documented that Equity share price volatility is generally related with the internal and the external factors.…”

“…Internal factors can be classified as microeconomic factors that are related to the individual operation of the firms-capital expenditure, company management, insider trading, dividend policy, company share and value in the sector (Özlen & Ergun, 2012). The obtainable literature on the effect of microeconomic factors on equity prices such as Irfan and Nishat (2002), Low (2007), Shubiri (2010), Khan et al (2011), Irmala et al (2011), Ali (2011, Özlen and Ergun (2012), See & Jusoh (2012), and Shah et al (2012) showed that there are many internal variables that affect the companies or funds' performance in equity market which in turn impact the price level. For instances, dividend yield, dividend announcement, earning per share, management performance, risk's volatility, credibility, and size and capital growth of the firms or fund portfolios size.…”