Determinants of Stock Prices in Jordanian Banks: An Empirical Study of 2006–2018

• 발행기관: 한국유통과학회
• 저자명: Omar Khlaif GHARAIBEH Mahmoud Ali JARADAT
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 8 No.7, 349~356쪽, 전체 8쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2021.07.30

영문 초록

This study comprehensively investigates whether there is an impact of risk, size, profitability, earnings per share, dividend yield, and bookto- market equity on the stock prices of Jordanian banks listed on the Amman Stock Exchange (ASE) for the period 2006–2018. To mitigate endogeneity concerns and to control for within-bank dynamics, panel data fixed effects estimations are used. This study shows that size (SIZE), profitability (ROA), dividend yield (DY) and book-to-market equity (BE/ME) ratios are statistically significant determinants of stock prices. The risk (RISK) factor measured by volatility of ROA has a positive and significant effect on the stock prices, while earnings per share has minimum influence on the stock prices. The results show that ROA has a significant and positive effect and provides the largest effect among all variables used in this study, while the RISK factor has a positive and significant effect. In contrast, SIZE, DY, and BE/ME have a significant negative effect on stock prices. The paper presented new evidence showing that ROA is a better determinant of stock prices in Jordanian banks, and RISK significantly affects stock prices. The researcher recommends using a factor of profitability represented by ROA which has a significant positive effect on the stock prices in Jordanian banks and applying the ROA variable to other sectors.

목차

1. Introduction

2. Literature Review

3. Research Methods

4. Results and Discussion

5. Conclusion

키워드

Firm Size Profitability Risk Dividend Yield Book to Market