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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
 
Creator Islam, Mohammed Syedul
Dooty, Evana Nusrat
 
Subject Bangladesh, Chittagong Stock Exchange, dividend, retained earnings, share price.
 
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.
 
Publisher Journal of Economics and Business Research
 
Contributor
 
Date 2015-06-19
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.uav.ro/jour/index.php/jebr/article/view/522
 
Source Journal of Economics and Business Research; Vol 21, No 2 (2015): J of Economics & Business Research; 117 - 133
2069-9476
2068-3537
 
Language eng
 
Relation http://www.uav.ro/jour/index.php/jebr/article/view/522/pdf
 
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