Financial Performance as Mediator on the Impact of Investment and Financial Decisions on Stock Price and Future Profit: The Case of the Jordanian Financial Sector

The current study investigates the effect of investment and financial decisions on stock prices and future profits in the presence of financial performance as an intermediate variable. Thus, the case of the Jordanian banking and insurance sector is analysed. The sample includes 13 banks and 10 insur...

Full description

Saved in:
Bibliographic Details
Published in:International journal of economics and financial issues 2020-03, Vol.10 (2)
Main Author: Zaher Abdel Fattah Al-Slehat
Format: Article
Language:English
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
cited_by
cites
container_end_page
container_issue 2
container_start_page
container_title International journal of economics and financial issues
container_volume 10
creator Zaher Abdel Fattah Al-Slehat
description The current study investigates the effect of investment and financial decisions on stock prices and future profits in the presence of financial performance as an intermediate variable. Thus, the case of the Jordanian banking and insurance sector is analysed. The sample includes 13 banks and 10 insurance companies from 2009 to 2018. A structural equation modeling analysis is conducted using the AMOS 23 software to test the hypotheses and validate the model. Financial decision exhibits no effect on future profits and stock prices, whereas investment decision affects future profits and stock prices. Financial performance is considered a mediator in the effect between financing decision and future profits. By contrast, financial performance fails to mediate the impact of financial decision and stock prices. In addition, it cannot mediate the effect of investment decision on future profits and stock prices. Keywords: Investment Decision, Financial Decision, Financial performance, Stock Price, Future Profit JEL Classifications: G1, G2, G11 DOI: https://doi.org/10.32479/ijefi.9520
format article
fullrecord <record><control><sourceid>doaj</sourceid><recordid>TN_cdi_doaj_primary_oai_doaj_org_article_6fccdeb33d39456fa1b94eabd48ba265</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><doaj_id>oai_doaj_org_article_6fccdeb33d39456fa1b94eabd48ba265</doaj_id><sourcerecordid>oai_doaj_org_article_6fccdeb33d39456fa1b94eabd48ba265</sourcerecordid><originalsourceid>FETCH-doaj_primary_oai_doaj_org_article_6fccdeb33d39456fa1b94eabd48ba2653</originalsourceid><addsrcrecordid>eNqtzuFKw0AMB_AiCA7dO-QFBrbXls6v02EFYbB9P9K7nGa2l3F3E3wdn9SeCPoA5kvIn-RHLopFVdbtqi5Vd1UsYzzeztU2ZdNVi-Jzyx69YRxhR8FJmOaJACM8k2VMEkA8pFeCfjqhSSAOev9OMU3kE6C38Cvck-HI4mO-2Scxb7ALnLm8dk7nQHMgjtMdHGZyg5EymPknCRY9o__j7cnMD9wUlw7HSMuffl3024fD5nFlBY_6FHjC8KEFWX8HEl40hsRmJN06YywNSlm1rpvWYTmsa8LB1t2AVduo_7S-AOH6d1s</addsrcrecordid><sourcetype>Open Website</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype></control><display><type>article</type><title>Financial Performance as Mediator on the Impact of Investment and Financial Decisions on Stock Price and Future Profit: The Case of the Jordanian Financial Sector</title><source>Publicly Available Content Database</source><source>ABI/INFORM Global</source><creator>Zaher Abdel Fattah Al-Slehat</creator><creatorcontrib>Zaher Abdel Fattah Al-Slehat</creatorcontrib><description>The current study investigates the effect of investment and financial decisions on stock prices and future profits in the presence of financial performance as an intermediate variable. Thus, the case of the Jordanian banking and insurance sector is analysed. The sample includes 13 banks and 10 insurance companies from 2009 to 2018. A structural equation modeling analysis is conducted using the AMOS 23 software to test the hypotheses and validate the model. Financial decision exhibits no effect on future profits and stock prices, whereas investment decision affects future profits and stock prices. Financial performance is considered a mediator in the effect between financing decision and future profits. By contrast, financial performance fails to mediate the impact of financial decision and stock prices. In addition, it cannot mediate the effect of investment decision on future profits and stock prices. Keywords: Investment Decision, Financial Decision, Financial performance, Stock Price, Future Profit JEL Classifications: G1, G2, G11 DOI: https://doi.org/10.32479/ijefi.9520</description><identifier>EISSN: 2146-4138</identifier><language>eng</language><publisher>EconJournals</publisher><ispartof>International journal of economics and financial issues, 2020-03, Vol.10 (2)</ispartof><lds50>peer_reviewed</lds50><oa>free_for_read</oa><woscitedreferencessubscribed>false</woscitedreferencessubscribed></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><link.rule.ids>314,780,784</link.rule.ids></links><search><creatorcontrib>Zaher Abdel Fattah Al-Slehat</creatorcontrib><title>Financial Performance as Mediator on the Impact of Investment and Financial Decisions on Stock Price and Future Profit: The Case of the Jordanian Financial Sector</title><title>International journal of economics and financial issues</title><description>The current study investigates the effect of investment and financial decisions on stock prices and future profits in the presence of financial performance as an intermediate variable. Thus, the case of the Jordanian banking and insurance sector is analysed. The sample includes 13 banks and 10 insurance companies from 2009 to 2018. A structural equation modeling analysis is conducted using the AMOS 23 software to test the hypotheses and validate the model. Financial decision exhibits no effect on future profits and stock prices, whereas investment decision affects future profits and stock prices. Financial performance is considered a mediator in the effect between financing decision and future profits. By contrast, financial performance fails to mediate the impact of financial decision and stock prices. In addition, it cannot mediate the effect of investment decision on future profits and stock prices. Keywords: Investment Decision, Financial Decision, Financial performance, Stock Price, Future Profit JEL Classifications: G1, G2, G11 DOI: https://doi.org/10.32479/ijefi.9520</description><issn>2146-4138</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2020</creationdate><recordtype>article</recordtype><sourceid>DOA</sourceid><recordid>eNqtzuFKw0AMB_AiCA7dO-QFBrbXls6v02EFYbB9P9K7nGa2l3F3E3wdn9SeCPoA5kvIn-RHLopFVdbtqi5Vd1UsYzzeztU2ZdNVi-Jzyx69YRxhR8FJmOaJACM8k2VMEkA8pFeCfjqhSSAOev9OMU3kE6C38Cvck-HI4mO-2Scxb7ALnLm8dk7nQHMgjtMdHGZyg5EymPknCRY9o__j7cnMD9wUlw7HSMuffl3024fD5nFlBY_6FHjC8KEFWX8HEl40hsRmJN06YywNSlm1rpvWYTmsa8LB1t2AVduo_7S-AOH6d1s</recordid><startdate>20200301</startdate><enddate>20200301</enddate><creator>Zaher Abdel Fattah Al-Slehat</creator><general>EconJournals</general><scope>DOA</scope></search><sort><creationdate>20200301</creationdate><title>Financial Performance as Mediator on the Impact of Investment and Financial Decisions on Stock Price and Future Profit: The Case of the Jordanian Financial Sector</title><author>Zaher Abdel Fattah Al-Slehat</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-doaj_primary_oai_doaj_org_article_6fccdeb33d39456fa1b94eabd48ba2653</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2020</creationdate><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Zaher Abdel Fattah Al-Slehat</creatorcontrib><collection>DOAJ Directory of Open Access Journals</collection><jtitle>International journal of economics and financial issues</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Zaher Abdel Fattah Al-Slehat</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Financial Performance as Mediator on the Impact of Investment and Financial Decisions on Stock Price and Future Profit: The Case of the Jordanian Financial Sector</atitle><jtitle>International journal of economics and financial issues</jtitle><date>2020-03-01</date><risdate>2020</risdate><volume>10</volume><issue>2</issue><eissn>2146-4138</eissn><abstract>The current study investigates the effect of investment and financial decisions on stock prices and future profits in the presence of financial performance as an intermediate variable. Thus, the case of the Jordanian banking and insurance sector is analysed. The sample includes 13 banks and 10 insurance companies from 2009 to 2018. A structural equation modeling analysis is conducted using the AMOS 23 software to test the hypotheses and validate the model. Financial decision exhibits no effect on future profits and stock prices, whereas investment decision affects future profits and stock prices. Financial performance is considered a mediator in the effect between financing decision and future profits. By contrast, financial performance fails to mediate the impact of financial decision and stock prices. In addition, it cannot mediate the effect of investment decision on future profits and stock prices. Keywords: Investment Decision, Financial Decision, Financial performance, Stock Price, Future Profit JEL Classifications: G1, G2, G11 DOI: https://doi.org/10.32479/ijefi.9520</abstract><pub>EconJournals</pub><oa>free_for_read</oa></addata></record>
fulltext fulltext
identifier EISSN: 2146-4138
ispartof International journal of economics and financial issues, 2020-03, Vol.10 (2)
issn 2146-4138
language eng
recordid cdi_doaj_primary_oai_doaj_org_article_6fccdeb33d39456fa1b94eabd48ba265
source Publicly Available Content Database; ABI/INFORM Global
title Financial Performance as Mediator on the Impact of Investment and Financial Decisions on Stock Price and Future Profit: The Case of the Jordanian Financial Sector
url http://sfxeu10.hosted.exlibrisgroup.com/loughborough?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-01-11T00%3A52%3A21IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-doaj&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Financial%20Performance%20as%20Mediator%20on%20the%20Impact%20of%20Investment%20and%20Financial%20Decisions%20on%20Stock%20Price%20and%20Future%20Profit:%20The%20Case%20of%20the%20Jordanian%20Financial%20Sector&rft.jtitle=International%20journal%20of%20economics%20and%20financial%20issues&rft.au=Zaher%20Abdel%20Fattah%20Al-Slehat&rft.date=2020-03-01&rft.volume=10&rft.issue=2&rft.eissn=2146-4138&rft_id=info:doi/&rft_dat=%3Cdoaj%3Eoai_doaj_org_article_6fccdeb33d39456fa1b94eabd48ba265%3C/doaj%3E%3Cgrp_id%3Ecdi_FETCH-doaj_primary_oai_doaj_org_article_6fccdeb33d39456fa1b94eabd48ba2653%3C/grp_id%3E%3Coa%3E%3C/oa%3E%3Curl%3E%3C/url%3E&rft_id=info:oai/&rft_id=info:pmid/&rfr_iscdi=true