The Relationship between Each of (Return on Equity & Return on Asset) and Annual Return in the Abu Dhabi Securities Exchange (ADX): Evidence from United Arab Emirates

This study aims to discover the relationship between each of Return on Equity & Return on Asset and Annual Return in the Abu Dhabi Securities Exchange (ADX). The researcher takes approximately 50% as a random sample of the companies listed in ADX, for many sectors to achieve this goal.After the researcher collect the data needed to achieve this study, he calculate some of ratios as variables of study, like the annual Return for the companies (Rit), Return on Asset (ROA), Return on Equity (ROE) he used Statistical Package for the Social Science (SPSS) to analyze the data collected.The result of this study were the existence significant relationship between the (ROA, ROE) and the Annual Return (Rit) in the companies listed in the Abu Dhabi Securities Exchange (ADX), and the ROA and ROE together as Independent Variables explain (22%) of the changes that happened in the Dependent variable (Rit).And significant relationship between the Return on Assets (ROA) only and the Annual Return (Rit) in the companies listed in the Abu Dhabi Securities Exchange (ADX), and the ROA alone as Independent Variable explain (13.6%) of the changes that happened in the Dependent variable (Rit). And significant relationship between the Return on Equity (ROE) only and the Annual Return (Rit) in the companies listed in the Abu Dhabi Securities Exchange (ADX), and the ROE alone as Independent Variable explain (20.4%) of the changes that happened in the Dependent variable (Rit). JEL classification: G20, G21, G24, G30, G31 Keywords: Abu Dhabi securities Exchange (ADX), Return on Assets (ROA), Return on Equity (ROE), Annual Return (Rit)

Stock Price Volatility and Dividend Policy in Jordanian Firms

This paper examines the relationship between stock prices and dividend policy. To test the relationship, it uses multiple least square regressions for its analysis. The model developed for this research evaluates the relationship between dividend policy and stock price volatility over a span of ten years. The analysis utilizes multiple regressions to describe these relationships and also includes a correlation analysis amongst the variables chosen. The results conveyed a negative impact of the two components of the dividend policy that is D-P and D-Y on the share price volatility. This demonstrated that Jordanian industrial firms had their dividend yield rise, the stock prices tended to stabilize while the price volatility declined and thus lowers the share price risks. The results also demonstrated that higher payout ratios would mean low volatility of the stock price. Keywords; Divined Policy, Stock Price, Volatility, Jordanian Financial Market

The Effect of Financial Leverage & Systematic Risk on Stock Returns in the Amman Stock Exchange (Analytical Study – Industrial Sector)

This study aims at evaluating the relationship between stock returns in industrial companies listed on Amman Stock Exchange (ASE) and each of the systematic risk and financial leverage. Stock returns (Rit) are measured through the equation of returns divided by acquisition period. Whereas, systematic risk is measured by beta coefficient (?) using the market model, while the financial leverage (Lev) is expressed by debt ratio. Data concerning the variables of the study were collected comprising 48 industrial companies listed in Amman Stock Exchange for the period between January 2000 and December 2009. This task was accomplished in order to determine the relationship between stock returns as a dependent variable, and each of the systematic risk & financial leverage as independent variables. It should be noted that the study shows a statistically significant relationship between dependent variable and independent variables, it also found that these independent variables explain the 4.4% percentage of variation in stock returns in the industrial companies listed in Amman Stock Exchange. The results revealed by the study model were contradictory, and do not match very well with the previous studies that have been conducted on more developed stock markets. Moreover, the direction of some independent variables and it relationship with the dependent variable were different from the hypothetical relationship, given the example of the relationship between systematic risk represented by beta coefficient and stock returns. However, these results correspond very well with studies conducted on developing markets. Keywords: Returns, Systematic Risk, Financial Leverage, Amman Stock Exchange, Industrial Sector

The Impact of Interest Rate & Inflation Rate on the Stocks Returns in Abu Dhabi Securities Exchange (ADX): Evidence from United Arab Emirates

This study aims to discover the Impact of Interest Rate & Inflation Rate on the Stocks Returns in Abu Dhabi Securities Exchange (ADX). The researchers take approximately 45% as a random sample of the companies listed in ADX, for many sectors to achieve this goal.After researchers collect the data needed to achieve this study, they calculate some of ratios as variables of study, like the annual Return for the companies (Rit), Interest Rate (Int.Rit), Inflation Rate (Inf.Rit) and they used Statistical Package for the Social Science (SPSS) to analyze the data collected.The results of this study were the existence statistically significant Impact for the Interest Rate & Inflation Rate on the Stocks Return (Rit) in the companies listed in Abu Dhabi Securities Exchange (ADX) for the study period. And The Independent variables in this study Inflation Rate (Inf.Rit) and Interest Rate (Int.Rit) can explain 19.6% of changes that happened in the stock return (Rit) in (ADX).And there is a Negative statistically significant Impact for the Interest Rate (Int.Rit) on the Stocks Return (Rit) in the companies listed in (ADX) for the same period, and the Interest Rate (Int.Rit) only, can explain 10.9 % of changes that happened in the stock return (Rit) in (ADX).And there is a Negative statistically significant Impact for the Inflation Rate (Inf.Rit) on the Stocks Return (Rit) in the companies listed in (ADX) for the study period, and the inflation rate (Inf.Rit) only, can explain 5.1% of changes that happened in the stock return (Rit) in Abu Dhabi Securities Exchange (ADX). JEL classification: G20, G21, G24, G30, G31, E31, E3, G12, G1 Keywords: Abu Dhabi securities Exchange (ADX), Stock Return (Rit), study Inflation Rate (Inf.Rit), Interest Rate (Int.Rit)

The Causal Relationship between Savings and Investment in Jordan (A prospective study for the period 1980-2013)

This study aimed to discuss concerning the link between savings and investment, and highlight on most of the past studies concerning this relationship are cross-sectional in nature. The obvious difficulty with such studies is the homogeneity assumption that is usually made across the countries under investigation. In light of this, the study tried to fill this gap in some ways by attempting to investigate the causal relationship between savings and investment in Jordan using relevant econometric techniques, like Augmented Dickey-Fuller (ADF) test in a regression & Johansen co integration test. The evidence arising from the study suggests that, savings and investment are co-integrated. In other words, there is no reason to suspect either a long-run or equilibrium relationship between these two variables. This could also be interpreted to imply the existence of high capital mobility. Furthermore, a unidirectional causal relationship between savings and investment in Jordan running from savings to investment was observed, and the main findings in this study were:  Johansen co-integration test result shows evidence of co-integration implying that there is a long run relationship between GDP and savings, investment and FDI in Jordan. Savings and domestic investment have long run positive and significant impact on the Jordanian economy while FDI has negative but insignificant impact on the economy Keywords’: Investment, Savings, ,Time series macroeconomic data, FDI, GDP, Augmented Dickey-Fuller (ADF) test, Johansen co-integration tes

The Impact of Oil Sector on the Global Competitiveness of GCC Countries: Panel Data Approach

This study explores the impact of oil sector on global competitiveness of the GCC states in a panel data framework for the period from 2006 to 2014. The focus is placed on how the non-traditional factors; oil rents, fuel exports as percentage of merchandise exports, oil prices, and mining sector production impact on the global competitiveness of the GCC nations. The study uses panel data techniques to measure the effect of the oil sector’s impact on of global competitiveness of the GCC countries. The results of the regression show that the relation between rent and GCI found to be negative and highly significant whereas the oil prices and contribution of the mining sector in GDP found to have positive relation with GCI at 90% significance level. Finally, fuel exports as percentage of the merchandise exports has insignificant relation with GCI

World Corruption Perception Index Analysis

Although corruption is measured and defined by different institutions yet there is no agreement on one perfect definition. In this study attempt to analyze the results of corruption index using the definition and the index of Transparency International and the standard deviation of the scores of its corruption perception index. The study investigates the behavior of the index over time for all countries included in the CPI for the period of 2000-2014. Using a Hierarchical Classification Method, we grouped the countries into high, medium and low corrupt countries and then we investigate the volatility of perception of corruption among the same group and the different groups. We find that countries with low and high CPI are less volatile in terms of perception of corruption while countries with medium score are relatively stable in term of perception of corruption. Keywords: Corruption, Hierarchical Classification Method, Corruption Perception Inde

Importance of Financial Analysis for Published Financial Information to Predict the Stocks Behavior (Case study-ASE –Industrial Sector-Jordan)

This study aimed to identify the dimensions of the financial analysis and its advantages and how to benefit from it; in predicting stock prices by testing group of financial ratios and find a model quantitatively can be relied upon to predict the price per share of the industrial sector in the Amman Stock Exchange in order to help investors make rational decisions when they the investment process. To achieve this purpose has been tested three financial ratios for a sample of 30 companies listed their shares in the financial market, where data has been relying on published financial statements for its annual information. These ratios have been analyzed using the method of statistical known as a multiple regression to find the best model for the industrial sector of the financial market, which includes group of ratios (Many Variables) of Finance in which they can predict the price of stock in companies listed on the Amman Stock Exchange by this classification. Has been reached model for the industry where it appeared that the industry was affected by several variables affect the share price of this sector is the ratio of market value to book value and the percentage of the book value per ordinary share and the study concluded that it can rely on a set of financial ratios for each of the sectors (classified by the Palestine Securities Exchange) to predict the price of the arrow, study also recommended increased attention to the financial statements and transparency in the preparation and disclosure of the data and prepared according to international accounting standards, and it can an investor rely on financial analysis of the financial statements when making investment decisions. Keywords: Capital Asset Pricing Model (CAP.M), General Accounting Accepted Principle (GAAP), Earnings per Share (EPS), Book Value of share, Market Value of share, Stock Price

The Relationship between the EPS & the Market Stock Return (Case Study: Industrial Sector-Jordan)

This topic is one of the more threads of financial market theory that have been studied by researchers in the accounting and finance field, and on the following the attempts by some scientists specialized financial to confirm or explain the result that reached by each of the study (Ball, R & P Brown) and study (Brown, L. D), which lead to low explanatory power of profit-variable in the regression model used to describe the relationship between stock returns and accounting profits. Because those researchers found during their review of previous studies and its evaluations in this area that profits generally do not explain more than 11% of the change in stock returns.   After we test the relationship between each of the (EPS &LEBS) and the market stock return we found the ability of each variable of the change in earnings per share and a variable level of earnings per share does not explain more than 9.9% of the market returns of shares joint stock companies listed in the industrial sector in the Amman Financial Market; The variation in the ability of winning each of the variable change in earnings per share and variable earnings per share in the interpretation of stock market returns makes it subject to identify the most variable interpretation of returns is not possible, or at least is characterized by a certain degree of difficulty. Finally the use of more than one representative of profits in the form of the relationship makes profits more ability to interpret market returns and reduce bias resulting from errors in the measurement of profits. Keywords’: Earnings per Share, Level of EPS, Industrial Sector, Amman Stock Exchange (ASE), Expected & Unexpected Return, Market Stock Return

The Effects of the Global Financial Crisis on the Tourism Sector (Analytical study: Jordan)

Despite of the remarkable prosperity witnessed by the Jordanian tourism sector since early 2004, and growing the contribution in the national economy, but the negative effects of the global financial crisis which broke out in the second half of 2008 and gripped on the global economy, has affected this sector and others sectors. And the implications of the crisis began on the tourism sector to emerge since December 2008, where the number of the arrivals tourists to Jordan dropped in that month by to 15% compared to the same month of 2007. This study aimed to highlight and analyze repercussions of the global financial crisis on the tourism sector in Jordan, through clarify the nature of the current crisis, and select the channels their impact on the tourism sector, as well as discuss the foundations of the ways to help the sector out of the crisis. The study concluded to the significant effect of each of the median income & relative prices on tourism demand, while not find significant evidence of the impact of the exchange rate, and confirmed by the results on a high elasticity of demand for tourism relative prices. The study predictions pointed out to the decrease rate of the influx of tourists to Jordan, from all countries in the world and finally the study provided ??a number of recommendations for policy-makers regarding the demand and supply beside me, and the role of government in helping the tourism sector to exit from the crisis. Keywords: (UNWTO) The United Nations World Tourism Organization, (JIB) Jordan Investment Board, (GDP) Gross Domestic Product, (JTB) Jordan Tourism Board, (CBJ) Central Bank of Jordan, Tourism Secto