Int. J. Managerial and Financial Accounting, Vol. 11, No. 1, 2019 73
Copyright © 2019 Inderscience Enterprises Ltd.
The association between accounting disclosures and
stock market price: an empirical study on Jordanian
commercial banks
Mohammad Aladwan*
Department of Accounting,
The University of Jordan,
11942 Amman, Jordan
Email: msm_adwan@ju.edu.jo
*Corresponding author
Yasar Shatnawi
Azman Hashim International Business School,
Universiti of Teknologi Malaysia, (UTM),
Johor, Bahru, 81310, Johor, Malaysia
Email: yas.shatnawi@ju.edu.jo
Abstract: The main aim of the study is to provide empirical evidence about the
association between accounting disclosures and market value of stock price.
The study uses a sample of the accounting disclosures for a number of
commercial banks listed in Amman Stock Exchange (ASE). These disclosures
include; the market value of stock price (MVP) that represents the dependent
variable, whereas other disclosures, return on assets (ROA), debt ratio (DR),
dividends yield (DY), price earnings ratio (PER), trading volume (TV), and
change in customers deposits (CD) represent the independent variables. The
study’s methodology follows a quantitative approach using multiple regression
method. The data were collected from the annual reports of the selected banks
from 2012 to 2015. The results show that ROE, PER, and CD are positively
correlated to market value of stock price, while the other variables; DR, DY
and TV were found negatively correlated to market value of stock price.
However, these findings generally indicate that accounting disclosures have a
significant impact and associated with market value of stock price for Jordanian
financial sector particularly the commercial banks.
Keywords: accounting disclosures; return on assets; ROA; stock market price;
debt ratio; price earnings ratio; PER; trading volume; Jordan.
Reference to this paper should be made as follows: Aladwan, M. and
Shatnawi, Y. (2019) ‘The association between accounting disclosures and stock
market price: an empirical study on Jordanian commercial banks’,
Int. J. Managerial and Financial Accounting, Vol. 11, No. 1, pp.73–92.
Biographical notes: Mohammad Aladwan is an Assistant Professor at the
Department of Accounting in the University of Jordan. He taught accounting in
four Jordanian universities. He has participated in many international economic
conferences and published many research papers in the field of accounting. His
main research of interests are accounting theory, accounting standards,
managerial accounting.