المستخلص: |
This study aims to examine the relationship between accounting information and stock price changes on the Jordanian service companies listed in Amman Stock Exchange. The data of the study was collected from companies' annual financial reports that are published on Amman Stock Exchange website for a period of 10 years from 2006 to 2015. The population of this study is the service publicly-held companies listed in Amman Stock Exchange. A sample of 54 Jordanian service companies listed in Amman stock exchange was tested. The correlation test results show a positive significant correlation between assets turnover, inventory turnover and earning per share with changes in stock prices. Regression analysis also shows that the asset turnover ratio, inventory turnover ratio, and earning per share have a significant positive effect on stock price changes. It should be noted here that stock prices have fallen gradually from 2005 to 2008 as a result of the global financial crisis that hit the world, which had an impact on the Jordanian market The study in hand suggests the following recommendations: 1-Due to the impact of assets turnover, inventory turnover and earnings per share on stock price changes, companies listed in Amman stock exchange should include in the annual reports simplified summery of these ratios. 2-Investors should use assets turnover, inventory turnover and earnings per share for investment decisions. 3-Future research is suggested to include: a-Companies from different sectors. b-Cash flow variables to explain the changes in stock prices.
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