ANALYSIS ON ELASTICITIES AND CASUALTIES OF FINANCIAL PERFORMANCE

Abstract

This study aims to identify elasticities and losses in Jordan's stock markets for 2005-2018 in
financial performance and determinants of mining and extractive enterprises. The conceptual
framework builds on resource-based perspective theory in a description of the interaction
between external environments and company financial success. The return on assets ratio is used
as the proxy for the measurement of financial performance. Meanwhile, independent factors
include the characteristics of the company, its macroeconomic variables and its non-economic
factors.The results show that the bidirectional causalities between FDI and SMI, M2 and SM,
between EC and EC have been confirmed. and GDP and between EC and GF C. Unidirectional
causalities existed between FDI and GDP, between FDI and FDO, between EO and GDP,
between EO and EC and between L and M2. Generally, Jordanian policymakers focus on
attracting more FDI by increasing financial market liberalisation and economic indicators.This is
because further FDIs are expected to reduce economic hurdles in the Jordanian economy (e.g.
lower unemployment, higher technology and management skills, higher capital size).