FACTORS AFFECTING STOCK PRICE: EVIDENCE FROM COMMERCIAL BANKS IN THE DEVELOPING MARKET

This study aims to investigate the impact of microeconomic andmacroeconomic factors on the market price per share using paneldata from 13 listed Jordanian commercial banks during the period2010?2021. Based on a microeconomic level the firm-specificvariables are earnings per share (EPS), dividend per share (DPS),price-earnings ratio (PE), book value per share (BV), return onassets (ROA), and size (S). Similarly, gross domestic product (GDP),inflation (INF), and money supply (MS) were chosen as independentvariables for the macroeconomics whereas the company?sdependent variable is market price per share (MPS). Earnings pershare are the most internal and external factors affecting the shareprice (Arshad, Arshaad, Yousaf, & Jamil, 2015). This paper hasinvestigated the influence of bank-specific and macroeconomicfactors on the share price of Jordanian commercial banks usingmultiple regression models. Based on the regression results,the coefficient of EPS is positive at the 1% level of significance.implying that the greater the EPS, the higher the MPS. The samepositive impacts for DPS, ROA, and S are considered majorpredictors of stock prices in Jordan. Volume was discovered to bethe most important determining variable impacting stock priceamong the factors. This indicates that the bigger the company?smarket capitalization, the higher the stock price. Major variablesthat impact the stock price include macroeconomic data such asGDP and MS. (5) (PDF) Factors affecting stock price: Evidence from commercial banks in the developing market. Available from: https://www.researchgate.net/publication/366119183_Factors_affecting_stock_price_Evidence_from_commercial_banks_in_the_developing_market#fullTextFileContent [accessed Sep 16 2023].