Dhaka Stock Exchange Case Studies Essay

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Mondal & Imran (2011) examined the determinants of stock price by focusing on the Dhaka Stock Exchange (DSE) as a case study. Their study analyzed the factors that may have influence on determining the share price of some companies listed in DSE. Also analyzed, was the influence of liquidity, leverage, profitability, growth, size of the firm and dividend rate on market price per common share. Outcome of the study indicate that both qualitative and quantitative factors affect stock price. Qualitative factors identified by this study included company goodwill; unexpected circumstances; analysts’ report; technical influence; market sentiments; change in government policy; hype; company announcements; AGM; print and electronic media; international…show more content…
The study’s focus was on Fast Moving Consumer Goods (FMCG) companies and the price level based approach was used to determine the extent to which stock prices were influenced by the variables selected for the study. Data with respect to a cross section of FMCG firms listed on the floor of the Bombay Stock Exchange (BSE) over the period 2001-2010 was obtained and analyzed. The results obtained from the study indicate that corporate financial variables were value relevant since according to Dawar (2012), fundamental variables play an important role in stock pricing in Indian FMCG companies. Accordingly, Dawar (2012) further maintained in his findings that dividend and investment policies respectively were value relevant since they aided stakeholders in the area of providing necessary signals regarding the market information not contained in accounting…show more content…
The study covered a period of 5 years (2005-2009). Using a pooled cross-sectional data, the results from the regressions analysis evidenced that the value relevance of earnings and book value were below average. According to Pathirawasam (2013), the results from this study further revealed that value relevance of ownership concentrated firms was higher than that of ownership non-concentrated firms. Interestingly, earnings and book value per share indicated higher value relevance for larger firms than for smaller firms (Pathirawasam, 2013). Also, contrary to the findings of prior studies, Pathirawasam (2013), maintained that book value was more value relevant than earnings in Sri

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