Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


Impact of Liquidity and Profitability Ratios on the Stock Market Value of Jordan Insurance Companies

Author(s): Abdullah Al Maani, Akram Sh. Alawad, Bassam S. Abu Karaki

This study aims to investigate the impact of liquidity and profitability ratios on the market value of stocks in Jordanian insurance companies by investigating a sample of five insurance companies during the period (2015-2019). Data were collected from the annual reports, while the study adopted Current trading ratios, net- operating capital (NOC), profitability ratios (PR), which are return on assets (ROA), return on equity (ROE) and operating profit margins (OPM). The study concluded that there was no impact of the current trading ratio (CTR), NOC, ROA, and OPM on the market value of the stock, while there was an impact of the ROE on the market value of the stock in Jordanian insurance companies.

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