Macroeconomics, Firm-Specific Factors and Stock Liquidity: An Empirical Evidence from Jordan

Abstract

The aim of this study is to identify the macroeconomics and firm-specific determinants of stock liquidity in the context of Jordan over the period (2007-2014). As a sample, all industrial firms listed in the Amman Stock Exchange are taken for analysis. Unbalanced panel data (cross-sectional and time series) is used to obtain the results. The results show that the stock liquidity is positively affected by earnings per share, interest rate, gross domestic product, leverage, and the size of the firm while negatively affected by the ratio of the market value per share to the book value per share, inflation rate, and the return on assets.