Determinants of Stock Price Movements: Evidence from Chittagong Stock Exchange, Bangladesh
Journal of Economics and Business Research
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Title |
Determinants of Stock Price Movements: Evidence from Chittagong Stock Exchange, Bangladesh
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Creator |
Islam, Mohammed Syedul
Dooty, Evana Nusrat |
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Subject |
Bangladesh, Chittagong Stock Exchange, dividend, retained earnings, share price.
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Description |
Stock market plays a vital role in the economic development of an economy. It bridges up between savers and real manufacturers by raising funds from investors to companies. This process was broken down due to the 2010-2011 stock market crash in Bangladesh. Though the determinants of stock price have been settled empirically, the current paper aims to reexamine the relationship between stock price, dividend and retained earnings of 29 listed banks of Chittagong Stock Exchange, in the post-crash period. Cross-sectional data were collected from secondary sources. Using linear regression method, the study found that both, dividend and retained earnings of sample banks have strong influence over the stock price, though there was moderate explanatory power of those variables. After reviewing the causes of crisis 2010-2011, this study suggests the following: to control price manipulation, to publish proper financial statement, regulate the dividend policy, to ensure sufficient knowledge among investors, recruit technical expert and ensure proper settlement for transactions,prevent crises of stock market against speculation etc.
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Publisher |
Journal of Economics and Business Research
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Contributor |
—
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Date |
2015-06-19
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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Format |
application/pdf
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Identifier |
http://www.uav.ro/jour/index.php/jebr/article/view/522
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Source |
Journal of Economics and Business Research; Vol 21, No 2 (2015): J of Economics & Business Research; 117 - 133
2069-9476 2068-3537 |
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Language |
eng
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Relation |
http://www.uav.ro/jour/index.php/jebr/article/view/522/pdf
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Rights |
Copyright (c) 2015 Journal of Economics and Business Research
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