Impact of Some Stock Exchange Indicators on the Turnover Ratio of the Stocks of Glass and Porcelain Firms at Amman Stock Exchange during the Period (2000-2015)

Stock markets are considered as a measure of the economy, in which the condition of the stock exchange indicates the general development of the production sector. Nowadays, the importance of the stock exchange market is regarded among the most important financial tools, especially on the light of the Globalization and the new world order. Economists consider the exchanges as a mirror which reflects the reality of the conditions of the listed firms. While those exchanges had been the source of wealth for some investors, they had been the source of misery and bankruptcy of others, which can be ascribed to the high volatility at those exchanges (Esam, 2007). Organized Stock markets play a vital role in the recruitment of resources and savings, and their investment, as well as the role they play in the development of economy, and their contribution to attracting foreign and local investments. It can be said also that the success of economic reform programs depends on the presence of an active stock market, which extends and develops the exchange of stocks within an organized market. and Da'as (2005) conducted a study titled (Effects of Quantitative Components of the Palestine securities Exchange on Al-Quds Index). The goal of this study is to determine the effects of quantitative components of the Palestine securities exchange upon Al-Quds Index ، the effect of those quantitative variables individually ، and their extent on the Index value. The results of the study indicate that the quantitative components explain approximately the changing value of Index. Some of them indicate negative effect ، while the other indicates positive effects. Also, the study indicates that most effects are due to the value of the common capitalized stocks of the listed companies. The findings represent that the thinking methodology of investors will be the same ، even the model that depend on pre-intifada financial data. Decrease in investing and dealing values is due to the continuous savings of both investors and community at a whole. Hamad and Abu-Nassar (2013) carried out a study titled (The Effect of the Income Smoothing on the Market Return of Listed Companies in Amman Stock Exchange). The study aimed to identify the effect of the income smoothing on the market return of the industrial and service companies listed on Amman Stock Exchange. The study also investigated the effect of firm size and type of sector on the income smoothing process. The sample of the study comprises 44 industrial companies and 26 service companies listed on the Amman stock exchange during the period of (1996-2005). Eckel, (1981) model was used to classify the companies into smoothers and non-smoother. Four measures of income were used to achieve the objective of the study which are gross profit, net operating income, income before tax and net income. Three measures for size are used in the study: average of sales, average of total assets, and average of total market value. Descriptive measures, Person Test, Multiple Regression and T-Test are used to analyze the data of the study. The findings of the study revealed that some Jordanian companies practiced income smoothing, where the income smoothing appeared in all four measures of income in both sectors and in different proportions. It also indicated that there is no significant difference between the type of sector and income smoothing behavior by using different income measures except gross profit as a measure of smooth. Also, there is no significant difference occurred between the size of smoothing companies and non-smooth companies concerning their income by using three size measures (average of sales, average of total assets, and average of total market value) with an exception to the difference between the size smooth companies and non-smooth companies in case of using average sales when both sectors are tested at the same time. Finally, the findings indicated that there is a significant statistical impact of income smoothing behavior on abnormal market return. Awwad (2011) conducted a study titled (Effect of Earnings Management on Dividend Policy and Its Reflection on Corporation Market Value). The study aimed at examining the phenomenon of earnings management, and discovering the extent of its use by industrial public shareholding Jordanian companies listed in the Amman Stock Exchange, and its effect on dividend policy and its reflection on the market value during the period from 2001 to 2006, in order to contribute to the awareness of investors in making wise investment decisions, and recognize the ability of these companies in maintaining a balance between one of the most important financial policies (dividend policy) as an indicator of financial performance and market value as an indicator of the decisions of investors, shareholders and stakeholders in assessing the performance of the company. This study was conducted on a sample of (32) industrial shareholding companies, a time-series data, nature cross-sectional data of the group of years. The Modified Jones Model 1995 was used in order to determine to whet extent industrial companies use earnings management, and then test it's the effect of earnings management on the market value in light of dividend policy. To achieve the objectives of the study the researcher used a number of statistical methods that suit the nature of the data of this study. Results of the study showed that firms practice the management of profits (44%), and that this management has no impact on the policy related to the distribution of profits. Results showed also a significant impact of the management of profits on the market value, which is moderated by the policy related to the distribution of profits.