Open AccessAn Economic and Analytical Study of Inflation’s Impact on Performance Indicators of the Financial Market: A Case of Amman Stock Exchange for the Period 1980-2015
Author(s) -
صالح سراي,
نبيل بن مرزوق
Publication year - 2020
Publication title -
mağallaẗ buḥūṯ al-idāraẗ wa al-iqtiṣād
Language(s) - English
Resource type - Journals
eISSN - 2710-8856
pISSN - 2676-184X
DOI - 10.48100/merj.v2i1.75
Subject(s) - index (typography) , economics , inflation (cosmology) , stock market , hedge , stock market index , stock exchange , monetary economics , economic indicator , financial market , financial economics , finance , macroeconomics , ecology , physics , theoretical physics , world wide web , computer science , biology , paleontology , horse
This study aims to measure the impact of inflation rates in Jordan on the financial performance of the market, through the use of the following performance indicators: trading volume index, the index market value, the general index of shares prices, the index of the share turnover rate during the period (1978- 2013) based on annual data.
The Authors concluded in this study that there's a statistically significant relationship between the inflation rates and the indicators of the financial market performance, and that's what corresponds with the economic theory of Fisher and many previous studies, which refers to the positive relationship between the inflation and the financial market indicators, thus, it is possible to use the shares as a tool to hedge against the risks of inflation in Amman Stock Exchange.