Analysis the Determinants of Market Stock Price Movements: An Empirical Study of Jordanian Commercial Banks

Financial firms make up a substantial fraction of the domestic equity market. A number of studies subsequentlyused different conceptual and methodological approaches to model equity return of financial services firms.Movement of the stock price as the consequence of the movement of the micro and macroeconomic factors isstrongly supported by the literature review. Amman Stock Exchange in Jordan is inefficient in weak form.The sample of study includes the 14 commercial banks of Amman Stock Exchange for the period 2005 -2008.Simple and multiple regression analysis is conducted to find out the relationship microeconomic factors with thestock price and found highly positive significant relationship between market price of stock and net asset valueper share; market price of stock dividend percentage, gross domestic product, and negative significantrelationship on inflation and lending interest rate but not always significant on some years of Amman StockExchange in Jordan.