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Analysis Of The Relationship Between Economic Forces And Abnormal Stock Return: Empirical Evidence

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  • Faris Nasif AL-Shubiri

    (Amman Arab University Jordan , Faculty of Business - Department of Finance and Banking)

Abstract

Financial markets plays a vital role in the Jordanian economy organizes its operations in a changing environment, which is working on the transfer of local resources through productive channels next to foreign investment. The goal of this study is to analysis the relationship between economic variables and abnormal returns in Amman stock exchange. This paper used the data of variables such as 50 industrial firms with the period from 2004 to 2012. The results indicate that the, consumer price index , gross fixed capital formation and money supply on index abnormal stock returns is statistically significant and no significant industrial production index and money market interest rate Index and Abnormal returns. The researcher recommends attention to economic variables of the fiscal and monetary policy in the Jordanian economy, which is characterized as a fast-growing so that must be the continuous analysis of market factors and determine the impact on abnormal returns for the shares of companies which strengthens the competitive position of companies in the market.

Suggested Citation

  • Faris Nasif AL-Shubiri, 2013. "Analysis Of The Relationship Between Economic Forces And Abnormal Stock Return: Empirical Evidence," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 8(1), pages 7-15, December.
    • Handle: RePEc:pcz:journl:v:8:y:2013:i:1:p:7-15
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    References listed on IDEAS

    as
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    4. Zakieh Shooshtarian & Marzieh Amini, 2012. "The Study Of Relationship Between Leaders' Behavior And Efficiency And Return On Investment," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 6(1), pages 55-67, December.
    5. Mukherjee, Tarun K & Naka, Atsuyuki, 1995. "Dynamic Relations between Macroeconomic Variables and the Japanese Stock Market: An Application of a Vector Error Correction Model," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 18(2), pages 223-237, Summer.
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    Cited by:

    1. Ramin Bashir Khodaparasti, 2014. "The Role Of Macroeconomic Variables In The Stock Market In Iran," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 10(2), pages 54-64, December.

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