The Impact of the Volatility in Banks Performance Indicators on Stock Prices : An Empirical Study on Jordanian Listed Banks

Yamin, Ismail Younes; Ali, Mohammad Sami

doi:10.12816/0020148

Cited by 1 publication

(5 citation statements)

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“…Similarly, investors' perceptions are found to be unrelated with the market performance, and that agrees with (Ali, 2018b) as he confirmed that investors' behaviour is not associated with interest rates, over the long-run. By contrast, Thang (2009) revealed that stock market's indices are negatively relating to the rates of interest during both the short and long-terms. Additionally, the study revealed that investors' perceptions are not affected by the recent financial crisis during the long-run.…”

Section: Conclusion and Recommendationsmentioning

confidence: 92%

“…In this regard, Saunders et al (2012, p. 323) mentioned that researchers can get valid results through relying on measurements those are similar to what were used by previous related researches. Thus, since researchers including (Ali, 2016b(Ali, , 2018a(Ali, , 2018bAzam & Kumar, 2011;Thang, 2009) used similar measurements to test the market performance, the measures of this research are supposed to be valid. Therefore, to accomplish the core aim of this study the model specification and variables' measurements are addressed below.…”

Section: Research Methodology Hypotheses and Data Sourcesmentioning

confidence: 99%

“…However, Khrawish, Siam, and Jaradat (2010), Ologunde, Elumilade, and Saolu (2006) affirmed that the market capitalization is positively relating to interest rates. However, researchers including Thang (2009) confirmed a negative correlation between the stock index of Malaysian stock market and interest rates during the short as well as long-run. Therefore, the study induced that the increase in interest rates motivates investors to liquidate their securities to deposit them into the banks, and vice versa.…”

Section: Stock Market Performance's Related Studiesmentioning

confidence: 99%

“…Thus, due to the importance of these variables to the process of decision making, there are numerous studies conducted to find out their impacts in investment decisions. In this regard, researchers including Ali (2016b), Thang (2009), Aurangzeb (2012), El-Seoud (2014) confirmed that variables such as interest rates and M/BV ratio conduct a vital role in shaping investors' decisions. By contrast, a study by Ali (2018b) argued that there are no short or long-run causalities running from interest rates towards investors' behaviour as captured by the stock market liquidity.…”

Section: Introductionmentioning

confidence: 99%

“…Anyway, though many studies including Ali (2016aAli ( , 2016bAli ( , 2018aAli ( , 2018b, Thang (2009), El-Seoud (2014) examined the potential determinants of investors' behaviour; there is gap in literature regarding the impacts of market fundamentals and dividends policies in the perceptions of ASE's investors as captured by market's performance. Furthermore, that since the current literature confirmed that the economy of Jordan such as other emerging economies was affected by this crisis (Neaime, 2012;Al-Najjar et al, 2010) the study also seeks to understand the role of this financial turmoil to affect investors' perceptions, over the period Jan/1990-Dec/2017.…”

Section: Introductionmentioning

confidence: 99%

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An Empirical Analysis for the Perceptions of Amman Stock Exchange’s Investors

Ali

2020

Business: Theory and Practice

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Research problem: Although the economy of Jordan witnessed dramatic volatilities and fundamental variables including market-to-book value ratio and interest rate are located at the middle of these variations; there is a lack in literature regarding the impacts of market fundamentals and dividends policies in investors’ perceptions, as captured by the performance of Amman stock exchange. Research objectives: Thus, due to the power of these variables to impact investment decisions, this research aimed at scrutinizing the long and short-run causalities, which are running from market fundamentals, dividends policies, and the 2008/11 financial crisis towards investors’ perceptions. Research methodology: To accomplish the core aim of this research, empirical techniques like Augmented Dickey Fuller, Johansen Co-integration, the single equation of the error correction model “ECM” and the Wald test are mainly utilized to analyze a time series data set covering the period Jan/1990–Dec/2017. Results and future recommendations: Consequently, results from ECM confirmed that the study’s variables are not integrated over the long-run. Alternatively, findings from the Wald test approved that investors’ perceptions as captured by the market’s performance are statistically related to market fundamentals, dividends policies and the recent financial crisis. Therefore, the study concluded that ASE’s investors adopt the view of Gordon (1962) and Lintner (1962) during the short-run. However, the study recommends further researchers to follow the study’s models to investigate the other variables, which are impacting investors’ perceptions, as well as examining the impact of financial crises in the decisions of dividends’ policies.

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Section: Conclusion and Recommendationsmentioning

confidence: 92%

Section: Research Methodology Hypotheses and Data Sourcesmentioning

confidence: 99%