The Impact of Annual Accounting Profit And Annual Dividend Rates Declaration On The Prices, Volumes, and Values of Ordinary Shares Traded in ASE An applied Study

Dr.Faisal Mahmoud Shawawreh

Dr.Khaled Abed Hutaibat 

Dr.Mohamad Abdulrahim Dahiyat

Dr.Fawawz Khaled Shawawreh

Faculty Of Business Administration

Mutah University

Jordan – P.O.Box (7)

Abstract

This study aims to determine the impact of the declaration made by public shareholding companies listed in the stock market about their annual accounting profit and annual dividend rates on the prices, volumes, and values of ordinary shares traded on the Amman Stock Exchange (ASE). To accomplish this aim, the researcher conducted an applied study on the prices, volumes, and values of traded shares for the companies listed on the ASE. The methodology adopted to conduct the study involves collecting data from the annual reports of public shareholding companies and the ASE. Simple and multiple regression were used to test hypotheses of the study, which covered the period between 2006-2009.

The findings of the study revealed the existence of significant statistical relationship between the independent variables (the date of the declaration about the distribution of accounting profit, earnings per share, cash profit per share, dividend per share from retained earnings or retained) and the dependent variable including the market value (market price, trading volume, trading value). The findings also revealed that the dependent variable is affected by the date of declaration about the distribution of cash dividends and earnings per share of accounting profit and earnings per share of cash profit and earning per share from retained earnings. That study provided a set of recommendation for decision makers and investors.