The Impact of Macroeconomic Variables on Amman Stock Exchange (ASE) Liquidity Measurements

Abstract

The purpose of this study was investigating the relationship between selected macroeconomics variables: money supply 2 , exchange rate( $/JOD) , interest  rate on time deposits and saving deposits ,consumer price index, unemployment rate and gross domestic product (GDP) on Amman Stock Exchange (ASE) liquidity measurement . The paper question addressed whether the selected macroeconomic variables were significant effect on ASE liquidity .Liquidity ratios and liquidity turn over ratios used to calculate (ASE) liquidity from (Jan 2012– June 2016).The finding reveled that there was a significant positive relation between MS2 with liquidity measurements .There was a negative significant relation between consumer price index, interest rate on time deposits and liquidity ratios. Investors should study ASE liquidity further more and Jordanian economic changing conditions in order to evaluate their investments' options.

Keywords: Amman Stock Exchange (ASE); Macroeconomic variables; Liquidity ratios; Turnover ratios.