Testing the effect and the relationship between the real estate market and the stock market in Jordan 1985-2010

Dissertant

Nazzal, Salim Muhammad Jalal Salim

Thesis advisor

Gharayibah, Hisham Salih

Comitee Members

al-Tamimi, Arashad Fuad
al-Qudah, Kamal A.
al-Samirrai, Qahtan

University

Amman Arab University

Faculty

College of Business

Department

Department of Finance

University Country

Jordan

Degree

Ph.D.

Degree Date

2012

English Abstract

The real estate market is considered one of most important economic motivations.

This vital market directly interacts with other economic activities.

This study aims at studying the relationship and the effect of the variation in the stock market and the prevailing economic conditions on the variation in the real estate markets in Jordan for the period from 1985 to 2010; this research used historical data in the research diminutions in order to achieve its purpose.

The revenues of the Jordanian Department of Land and Surveying (DLS) and the inflation in the housing costs in Jordan were used as indicators for the private (i.e.

direct) real estate market.

On the other hand, the price index and the trade volume at the ASE listed real estate securities were used as indicators for the public real estate market.

Many statistical methods were used to analyze the effect and the relationship between the research variables including simple, multiple, and hierarchical regression techniques.

The results of the statistical analysis shows that the relationships between research variables depend mainly on the chosen indicator for the stock market or for the real estate market.

The correlation study results generally showed that statistically significant strong positive correlation relationships existed between the real estate sector indicators (i.e the ASE general price index and the ASE trading volume), on one side ,and the real estate indicators ( DLS revenues , ASE real estate sector trading volume) confirming co-integration between the two sectors which is in line with most of the other studies performed on the emerging markets of the other countries.

The correlation study supported the existence of a strong relationship between the foreign investment and both the stock and the real estate markets which makes it a valuable signaling tool for investors.

The effect study results showed a statistically significant effect of ASE price index on the revenues of DLS as an indicator for the private real estate market in Jordan and on the trade volume on the listed real estate companies in ASE as an indicator for the public real estate market in Jordan.

On the other hand, the trade volume of ASE was found to have a statistically significant effect on both; the trade volume in listed companies in ASE and on the revenues of DLS.

However, the effects of the prevailing economic factors on the public and private real estate market indicators were, generally, insignificant

Main Subjects

Financial and Accounting Sciences

Topics

• Jordan

No. of Pages

217

Table of Contents

• APA
• MLA
• AMA

Language

English

Data Type

Arab Theses

Record ID

BIM-561385