Key Fundamental Factors and Long-run Price Changes in Emerging Equity Markets: A Case of ASE-Jordan

Abdul Aziz Farid Saymeh and Marwan Mohammad Abu Orabi

International Journal of Empirical Finance, 2014, vol. 3, issue 4, 175-186

Abstract: As most emerging equity markets have experienced fluctuating developments in the last two decades. This study has been developed to assess the two investment strategies at Jordan’s ASE. This study intends to help clients identify, understand and develop international investment and market entry/expansion opportunities in the context of their global strategies, opportunities, and to integrate their investments in the developing stock markets in African and Middle East. Findings Study has compared the performance of ASE sector indexes as well as the general index along with their underlying fundamentals. Study results revealed that there were significant evidences between ASE sectors indexes and their corresponding fundamental values. However, the short-term correlation and long-term co integration showed conflicting results. The research made significant contributions to both investors and researchers regarding the long-term versus short-term investments in the different economical sectors of developing stock market. The research results might help both academicians and practitioners to be more acquainted by the components of developing stock markets. The data is limited to Jordan ASE; therefore, generalizing results of a Jordanian setting to other countries may be inconsistent. However, extending the analyses to other stock markets requires further researches via testing other countries stock markets. This will help mitigate the issue of generalizing conclusions on other stock markets.

Keywords: Jordan; Stock market; Correlation; Co integration; Fundamentals (search for similar items in EconPapers)
Date: 2014
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