Proceedings of European Business Research Conference
Sheraton Roma, Rome, Italy, 5 - 6 September 2013, ISBN: 978-1-922069-29-0
The Effect of Market Capitalization on Stock Price: A
case study from Jordanian Banks
Munther Al –Nimer
The effect of a company’s market capitalization (market
cap) on stock price is an motivating relationship to discuss.
This study aims to examine whether market capitalization
(market cap) has significant effect on stock price of listed
banks in Jordan. The study covers the period 2005-2011 14
listed banks taken from the Amman Stock Exchange (ASE).
The study revealed that Societe Generale de Banque –
Jordanie has the highest market capitalization (market cap),
while the lowest Arab Bank. Also found that Capital Bank of
Jordan has the highest stock price, while the lowest Arab
Bank.
Results disclosed that there is significant effect of
independent variables market capitalization (market cap) on
dependent variable stock price of listed banks in Jordan for
the period from 2005 to 2011.
Keywords: Stock price, Market capitalization (market cap), Amman Stock
Exchange (ASE).
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Munther Al –Nimer, Applied Science University, Faculty of Economic and Administrative
Science, Accounting Department, Jordan-Amman (11931), P.O. Box (166), Tel: 962-6-5609999 Ext. Phone 1469 E-mail: almunthermbk@yahoo.com
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