International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Determinants of Equity Share Prices of the Listed Banks in Amman Stock Exchange: Quantitative Approach
Dr. Mohammad Abdelkarim Almumani

This study is attempted to identify the quantitative factors that influence share prices for the listed banks in Amman Stock Exchange over the period 2005-2011 using empirical analysis of a set of independent and dependant variables. In the present study, the ratio analysis, Correlation and a linear multiple regression models have been selected to measure the individual as well as combined effects of explanatory variables on the dependant variables. The empirical findings shows that, there is a positive correlation between the independent variables DPS (correlation coefficient =.51), EPS (correlation coefficient =.84) BV (correlation coefficient =.81), PE (correlation coefficient =.81) and S (correlation coefficient =.57) and dependant variable MP and it is also significant at 1% probability level. However, further empirical findings that, there is a significant positive relationship between EPS and the MP of the listed banks in Jordan. This is evident in the t-statistics value of 2.29 and a P>|t| = (.03). Moreover, moreover, there is a significant relationship between banks BV and MP. This is evident in the t-statistics value of (2.110 and the P>|t| =.04). Another empirical finding from the regression analysis shows a positive relationship between P/E and MP. This is evident in the t-statistics value of (5.90 and the P>|t| =.00). Empirical findings from the regression analysis on the relationship between S and MP indicate that there is an inverse relationship between S and MP. This is however evident in the t-statistics value of (-2.28 and P>|t| =.03).Finally, other variables (DPS and DP) have insignificant impact on MP.

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