Determinants of commercial banks’ stock prices in Gulf Cooperation Council (GCC) Countries
DOI:
https://doi.org/10.59743/jau.v35i2.1541Keywords:
stock markets, commercial banks, stock prices, panel dataAbstract
The study aimed to identify the determinants of commercial banks’ stock prices operating in Gulf Cooperation Council (GCC) countries. We consider the stable panel statistics of 58 commercial banks are listed on the stock markets in the region under study from 2011Q1–2018Q4. Using the panel corrected standard error (PCSE) estimator. In light of the empirical results effects, our conclusion includes that (Management Efficiency coefficient, Earning Capacity, Sensitivity to market risk, Bank size, and Oil prices) have a significant positive impact on commercial banks’ stock prices operating in the GCC countries. The results of the study also show that (The coefficient of the capital adequacy, Assets Quality, and Concentration ratio) have a significant negative statistical impact on commercial banks’ stock prices operating in the GCC countries. Based on our findings, the study recommends that investors pay more attention to specific banking information and take into account the micro factors affecting prices to make the right decision about their investments.
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