Advanced Search
MyIDEAS: Login to save this article or follow this journal

The relationships between stock market capitalization rate and interest rate: Evidence from Jordan

Contents:

Author Info

  • Husni Ali Khrawish

    ()
    (Department of Banking and Financial Science, Hashemite University, Jordan.)

  • Walid Zakaria Siam

    ()
    (Department of Accounting, Hashemite University, Jordan.)

  • Mohammad Jaradat

    ()
    (Faculty of Economics & Administrative Sciences, Irbid University, Jordan.)

Registered author(s):

    Abstract

    The paper examines the effect of interest rates on the stock market capitalization rate in Amman Stock Exchange (ASE) over the period of (1999-2008). It is used the OLS regression method, multiple linear regression model and simple regression model. The time series analysis revealed that there are significant and positive relationship between government Prevailing interest rate (R) and stock market capitalization rate (S). The study shows that Government development stock rate (D) exerts negative influence on stock market capitalization rate (S), also it finds a significant and negative relationship between government Prevailing interest rate (R) and Government development stock rate (D). Finally, this study suggested the importance of government intervention to encourage investment in ASE by reducing rate of personal taxation thus, granting incentive for creation of wealth, control interest rate so as to aid the growth of the stock market and improving the regulatory environment and decreasing red tape.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://academicpublishingplatforms.com/downloads/pdfs/beh/volume2/201103201434_07_V2_BEH_JORDAN_Husni_Ali_Khrawish_et_al_d.pdf
    Download Restriction: no

    File URL: http://academicpublishingplatforms.com/article.php?journal=BEH&number=2&article=228
    Download Restriction: no

    Bibliographic Info

    Article provided by Prague Development Center in its journal Business and Economic Horizons (BEH).

    Volume (Year): 2 (2010)
    Issue (Month): 2 (July)
    Pages: 60-66

    as in new window
    Handle: RePEc:pdc:jrnbeh:v:2:y:2010:i:2:p:60-66

    Contact details of provider:
    Web page: http://academicpublishingplatforms.com/journal.php?journal=BEH
    More information through EDIRC

    Related research

    Keywords: Stock market capitalization rate; prevailing interest rate; government development stock rate.;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Yu Hsing, 2004. "Impacts of Fiscal Policy, Monetary Policy, and Exchange Rate Policy on Real GDP in Brazil: A VAR Model," Brazilian Electronic Journal of Economics, Department of Economics, Universidade Federal de Pernambuco, vol. 6(1), February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:pdc:jrnbeh:v:2:y:2010:i:2:p:60-66. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jaroslav Holecek).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.