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.
Idiosyncratic risk (IDR) is defined in general as the uncertainties of return to investors from an investment portfolio leading to diversification or hedging to mitigate and avoid such risks. This article aims to analyze the IDR of banking sector on oil (OI), stock market indicator (SMI), and fiscal indicator (FI) of Sultanate of Oman. This article examines the IDR of six banking sectors listed in Muscat Security Market (MSM), from 2009 to 2015. Financial modeling is used to determine the IDR of banking sector treated as an independent variable. This study uses three main critical dependent variables, OI, SMI, and FI. The ordinary least squares regression results depicted that there is a statistically significant impact on all of SMIs in MSM 30 share price and its market capitalization with direction of oil exports as OI being significant, as well as total expenditure as percentage of gross domestic product is significant as FI at different significant levels 1%, 5%, and 10%. The findings of the research indicated a weak investor's protection mechanism and strongly recommend heightened government focus on stressing the importance of having a formal system based on stability, safety, transparency, and supervision of the implementation of contracts so as to protect small investors, eventually leading to increased investments in stocks. Facilitation and encouragement to foreign direct investment will also lead to increase in the performance of fiscal management indicators and improve the export prices of oil, giving a boost to the economic and financial system of the nation.
This study aims to investigate the impact of structural indicators for the European Union banking system on economic evolution. The methodological framework is the analysis of three variables of economic evolution. The econometric equation is built by regression test using annual data for the period 2008 to 2014. The indicators of the European banking system consist of fifteen independent variables and their impact on three economic variables consisting of GDP at current market prices, EMU convergence criterion bond yields (Maastricht criterion) and HICP annual average inflation rates are investigated on the growth in EU (dependent variable). The regression results show that there is statistical significant impact at different level 1%, 5% and 10% of all independent variables on EMU convergence criterion bond yields (Maastricht criterion), and in thirteen variables on GDP at current market prices except total assets of domestic banking groups and branches of credit institutions from rest of the world variables. Finally, only three variables total assets of domestic banking groups, branches of credit institutions from rest of the world and assets of pension funds have significant impact on HICP annual average inflation rates. The researchers recommend the need to build the financial stability in the banking system of the European Union with the continuity of modifying commercial legislation based on environmental changes and raise transparency to increase and diversify investments in the financial markets to reduce risk, and, thus, this will lead to increase in the level of social responsibility toward socialist economic
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