Author(s): Mohammed Ali Al-Rimawi, Thair Adnan Kaddumi
The existence of an appropriate indicator to assess changes in stock prices is one of the most crucial and basic issues related to stock exchange operations, with the aim of helping investors to identify changes that occur in stock prices and the reason behind that. This paper aimed at investigating the financial determinants affecting stock market prices of commercial banks listed at Amman stock exchange (ASE). Where the financial determinants include earning per share (EPS), dividends per share (DPS), return on assets (ROA), return on equity (ROE). This research was based on descriptive analytical approach; as simple regression, analysis was employed to test the study hypotheses. Also, data was extracted from the annual financial reports pertaining to Jordanian commercial banks under scrutiny from 2014 to 2019, since the study sample included (13) commercial banks. The results show that EPS and DPS had no impact on stock market prices of commercial banks listed in ASE, while ROA and ROE had a significant impact on stock market prices changes. In this connection, the study recommends the need to develop the more comprehensive procedures related to the approved laws and regulations with the aim of raising the levels of disclosure, improving transparency and enhancing the level of investors’ awareness of stock market risks, in a way that helps disseminate all information about banks and helps investors make rational investment decisions.