The impact of the volatility in banks performance indicators on stock prices : an empirical study on Jordanian listed banks

Abstract EN

The aim of this research is to investigate the Impact of the Volatility in Jordanian Listed Banks performance’s indicators as proxies by (M / BV, turnover ratio, no.

of shares, no.

of transactions, and traded volume) on its Stock Prices.

To achieve the aim of this research, we formulated a key hypothesis assumes that the volatility in Jordanian listed banks performance’s indicators doesn’t affect its stock’s prices and this main hypothesis has been divided into five Sub-Hypotheses.

Testing of these hypotheses has been mainly depended on both Financial and Statistical analysis’ techniques.

Thus, after applying the linear, the multiple regression and the correlation tests, the key hypothesis and three of the sub-hypotheses were proven, and the study revealed that there is indeed a positive correlation among banks performance’s indicators and the level of its stock prices.

Additionally, the results found that these indicators could play a significant role in determining the directions of Jordanian banks stock’s prices.

Similarly, the strict volatility in these indicators could convey a positive or a negative effect to the direction of stock’s prices.

Consequently, by depending on these results, the researchers have recommended that it is very important for Amman Stock Exchange’s Investors to use these indicators to predict the direction of the intended stocks.