Investors Herding Behavior, Economic Policy Uncertainty, and Volatility of Amman Exchange Market

Abstract

Dr. Raneem Ghazi Aldeki

This paper demonstrates the dynamic connection between the volatility of Amman's stock market, herding behavior, and Economic policy uncertainty. The financial system and national economy's health as well as the rate of urbanization's growth are both impacted by Amman's stock market development quality. Based on the time series VAR model and EViews, this paper uses herding behavior and Economic policy uncertainty to conduct an empirical analysis of the fluctuations in Amman's stock market. The experimental results demonstrate, through computer simulation and computation, that changes in economic policy uncertainty have a bigger influence on Amman's stock market volatility than do changes in herding behavior, while both effects are quite small.

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