Abstract
The study aims at identifying the impact of stock characteristics represented by (Earnings Per Share (EPS), Book Value Ratio (BVR), Dividends Per Share (DPS), Dividends Payout Ratio (DPR), Market to Book Ratio (MBR), Price Earnings Ratio (PER), and Yield Per Share (YPE)) on the market stock price in the 13 commercial banks in Jordan during the period from 2005 to 2018. Multiple Linear Regression has been used to illustrate the impact of the independent variables and the controlling variables on the dependent variable.
 
 The study has found that there is a significant impact of stock characteristics on its market price at the Jordanian commercial banks. The study also found a statistically significant impact for each book value ratio, dividends per share, market to book ratio, price-earnings ratio, and yield per share on the market price at the Jordanian commercial banks. However, there was no statistically significant effect for each of the earnings per share and dividend’s payout ratio on the market price at the Jordanian commercial banks. The study recommends that investors, analysts, and decision-makers use the characteristics of stocks when carrying out analyses before making important investment decisions that can affect their wealth in the future through forecasting stock prices.
Highlights
Financial markets provide investment channels for investment institutions and individuals and represent an incentive for listed companies in the markets to follow changes in their stock prices and push them to improve their performance and increase their profitability, which leads to improved stock prices (Menaje, 2012)
Dividends Per Share (DPS): Cash dividends divided by the number of outstanding shares
Dividends Payout Ratio (DPR): Dividends per share divided by earnings per share
Summary
Financial markets provide investment channels for investment institutions and individuals and represent an incentive for listed companies in the markets to follow changes in their stock prices and push them to improve their performance and increase their profitability, which leads to improved stock prices (Menaje, 2012). The efficiency of financial markets is a necessary condition for that (Schroeder et al, 2011) The presence of these highly efficient markets helps provide liquidity to new investments, as well as reduces the degree of financial risk, which leads to raising the economic growth rates of the country (Karami & Talaeei, 2013). Shares are the most common among the securities for investors in the financial markets, as investors need a lot of information in order to help them in making the correct investment decision, and the most important of this information is the size of the expected supply and demand for stocks in addition to information related to cash flows and the accounting information that indicates on the performance of the company and its business results, which help in determining the real share price. The capital market in Jordan is one of the developing markets characterized by limited competition, low liquidity, high rate of return and risk compared to markets in developed countries (Alawneh, 2018), where the most of the investors who lose their money in the stock markets are usually small investors because they may not be specialists in stock trading in the market stocks, or because they lack the ability to determine the correct time to buy or sell these stocks, and perhaps they do not have the ability to determine which of the stocks is best bought or sold, so knowing the characteristics of these stocks and the factors that affect the market stocks price help them understand the nature of these stocks avoid the possibility of loss in stocks
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