A.F.M. MAINUL AHSAN - Profile on Academia.edu (original) (raw)

Papers by A.F.M. MAINUL AHSAN

Universal Journal of Accounting and Finance

While there are many factors that influence stock market activity, the main focus of this paper i... more While there are many factors that influence stock market activity, the main focus of this paper is to examine stock market performance under different political leadership in Bangladesh. This study mainly considers two different daily DSE indices' (DSI and DGEN) return and some key market indicators for the sample period March 20, 1991 to April 30, 2013. We basically analyzed average market return, volatility and risk for each government term (five terms) individually. By means of descriptive observation and statistical analysis we found evidence that the performance of stock market was superior under government term 4 (2006 to 2009) while performance was worst under government term 2 (1996 to 2001) and term 5 (2009 to 2013). It was also found that the government term 4 was led by nonpolitical party, i.e. Caretaker government whereas the government terms 2 & 5 were led by the same political party.

Advances in Economics and Business, 2013

Information affects stock prices, even if it is not truthful. The news piped through the business... more Information affects stock prices, even if it is not truthful. The news piped through the business press may contain deliberately planted misinformation. This study examines the effect of erroneous news and analysis by a leading daily newspaper on the performance of stock returns in the Dhaka Stock Exchange in Bangladesh. The reaction to the false news involves an unsustained jump in stock prices under misguided optimism. We also investigate the scope of legal remedies against false news and stock price manipulation. The responsibility and accountability of the media involved in spreading misinformation is also an issue.

Investment management & financial innovations, 2017

Purpose of this study is to explore the stock price reaction to the announcement of right issues ... more Purpose of this study is to explore the stock price reaction to the announcement of right issues offered by different firms in Dhaka Stock Exchange (DSE), Bangladesh. Information of 83 right issues from 2006 to 2012 combined with the standard event study methodology has been used for this purpose. Findings reveal statistically significant abnormal returns on the announcement and surrounding dates. Sectoral decomposition of daily abnormal returns shows that textile sector provides the maximum abnormal return while banking sector delivers the least. The results of this study imply that DSE is not semi-strong form efficient with respect to past information on right issue announcements. Also information leakage before the announcement of right issues raises serious questions against efficiency in regulation and effectiveness of supervision in DSE.

Journal of Finance and Accounting, 2016

This study principally analyzes the fund managers’ ability to outguess the market in Bangladesh. ... more This study principally analyzes the fund managers’ ability to outguess the market in Bangladesh. We perform the investigation on weekly data of 25 mutual funds for the period of May 16, 2010 to April 28, 2016. To serve our objective, we tested both selection and market timing skills of the fund managers. We have used six measures; average return, Sharpe ratio, Treynor ratio, Information ratio, Jensen’s alpha and M square; to confirm the selection skill of fund managers and found no selection skill persistent to most of the fund managers (excluding Aims 1st M.F, ICB AMCL 2nd NRB M.F. and 6th ICB M.F.). In addition, the negative values of alpha indicate that fund managers become not only failed to add value to their portfolio, but also pool wrong assets which hurt the return resulting negative profit. On the other hand, we have employed two popular methodologies; Treynor and Mazuy [24] and Henriksson and Merton [10]; to test the market timing skill of fund managers and found no market...

THE JOURNAL OF APPLIED BUSINESS AND ECONOMICS, 2013

This paper tests the tax-loss selling hypothesis in Dhaka Stock Exchange (DSE) in Bangladesh. Thi... more This paper tests the tax-loss selling hypothesis in Dhaka Stock Exchange (DSE) in Bangladesh. This study uses monthly data from DSE All Share Price Index (DSI) for the period of 1987 to 2012. Under the hypothesis rational investors offsets taxable income against the capital losses to realize the losses at the end of the tax year which eventually causes significant positive returns in January or July as the tax selling pressure ends after the fiscal year. Empirical results do not support the tax-loss selling hypothesis as an explanation for the high June return at the end of the tax year in Bangladesh.

The Indian Economic Journal, 2012

An exploratory study tried to identify the nature and severity of various problems influencing in... more An exploratory study tried to identify the nature and severity of various problems influencing investment decisions in Bangladesh. The sample investors identified 48 different issues affecting investment. These involve Infrastructure, Governance, Tax policy, Finance policy, and Labour Policy. This paper focuses on policy issues relating to tax, and finance. The sample investors diagnosed the problems and suggested many ideas to overcome them. They proposed the creation of an investor council as an institutional apparatus. This council would facilitate public private partnership, and the support the formulation of more informed policies. They suggested simplification of tax laws and rationalisation of tax structures. They proposed financial stimulus packages for new investors.

Margin requirements and rtock market volatility in Bangladesh

SDMIMD journal of management, Sep 1, 2012

Officially margin requirements in bourses in Bangladesh were initiated on April 28, 1999, to limi... more Officially margin requirements in bourses in Bangladesh were initiated on April 28, 1999, to limit the amount of credit available for the purpose of buying stocks. The goal of this paper is to measure the impact of changing margin requirement on stock returns' volatility in Dhaka Stock Exchange (DSE). The impact of margin requirement on stock price volatility has been extensively studied with mixed and ambiguous results. Using daily stock returns, we found mixed evidence that SEC's margin requirements have significant impact on market volatility in DSE.

Journal of Applied Business and Economics, 2013

This paper examines herding in Dhaka Stock Exchange (DSE) in Bangladesh. Daily and monthly return... more This paper examines herding in Dhaka Stock Exchange (DSE) in Bangladesh. Daily and monthly returns for all the stocks listed on DSE for the period of January, 2005 to December, 2011, including the market crash in December, 2010, have been used in this study. Using Cross-Sectional Standard Deviation (CSSD) and Cross-Sectional Absolute Deviation (CSAD) technique, this study did not detect existence of herding in Dhaka Stock Exchange for the above mentioned time period. Absence of herding in Bangladesh depicts that investors in DSE are rational and make investment decisions based on information available in the marketplace rather than following the market consensus.

Demutualization is the current trend among stock exchanges all over the globe. Bangladesh has sta... more Demutualization is the current trend among stock exchanges all over the globe. Bangladesh has started its journey to get her exchanges demutualized in 2011. The purpose of this study is to examine the post-demutualization performance of the stock exchanges and offer some recommendations for stock exchanges in Bangladesh. In our study we examine the performance of three different stock exchanges that have already demutualized: Bursa Malaysia, Hong Kong Stock Exchange and London Stock Exchange. We found evidence that the performance of all the three demutualized exchanges have improved in terms of operational profitability and efficiencies along with governance scale. We have also identified some challenges associated with demutualization.

Hartal or strike has become a constitutionally recognized weapon for realizing any political dema... more Hartal or strike has become a constitutionally recognized weapon for realizing any political demand in Bangladesh. In spite of sensing very well about the mammoth economic cost attributable to hartal, politicians in Bangladesh are calling hartal repeatedly. This study mainly considers daily DSE General Index (DGEN) return and turnover (TK) for the sample period of June 1, 2010 to May 16, 2013 to examine the impact hartal on the stock market performance in terms of market return and turnover. Using dummy variable combined with linear regression analysis, we found evidence that hartal has little or no impact on the stock market performance.

International Journal of Economics and Finance, 2013

The objective of this study is to examine the stock price reaction to the bonus issue announcemen... more The objective of this study is to examine the stock price reaction to the bonus issue announcement in Dhaka Stock Exchange (DSE) in Bangladesh. Data of all the 136 right issues from six different sectors, i.e., Engineering, Cement, Food & Allied, Fuel & Power, Pharmaceuticals & Chemicals, and Textile during 2009 to 2012 combined with the standard event study methodology has been used for this purpose. Findings reveal statistically significant abnormal returns on and around the bonus issue announcement dates which supports signaling hypothesis for Bangladesh and also implies that investors have anticipated the informational content of the event, or that they have gained access to inside information. However, sectoral decomposition of returns showed quite paradoxical results. Cement, Food & Allied, Fuel & Power, and Pharmaceuticals & Chemicals sector supports long-established theories that the stock market reacts positively to the announcement of a bonus issue. However, Engineering and Textile sector illustrates the opposite. Results of this study imply that DSE is not semi-strong form efficient with respect to past information on bonus issue announcements. Also, information leakage before the announcement of bonus issues raises serious questions against efficiency in regulation and effectiveness of supervision in DSE.

International Journal of Business and Management, 2014

This paper mainly studies the influence of capital structure on firm's performance. This investig... more This paper mainly studies the influence of capital structure on firm's performance. This investigation has been performed on a sample of 36 Bangladeshi firms listed in Dhaka Stock Exchange during the period 2007-2012. We have used four performance measures; earnings per share (EPS), return on equity (ROE), return of asset (ROA) and Tobin's Q; as dependent variables and three capital structure ratios; short-term debt, long-term debt and total debt ratios; as independent variables. Using pooling panel data regression method, we found that EPS is significantly positively related to short-term debt while significantly negatively related to long-term debt. There is significant negative relation between ROA and capital structure. On the other hand, there is no statistically significant relation exists between capital structure and firm's performance as measured by ROE and Tobin's Q. Nonetheless, aside from the positive relation between EPS and STDTA, we can conclude that capital structure has negative impact on firm's performance which is consistent with the proposition of Pecking Order Theory.

International Journal of Business and Management, 2013

This paper examines existence of January effect in Dhaka Stock Exchange (DSE) in Bangladesh. Regr... more This paper examines existence of January effect in Dhaka Stock Exchange (DSE) in Bangladesh. Regression model combined with dummy variables and monthly DSE All Share Price Index (DSI) from January 1987 to November 2012 has been used to test January effect in the stock return in DSE. It was empirically found that, although January anomaly doesn't exist in DSE, there is significant positive return in June which raises question against efficient market hypothesis (EMH). Thus, there is an opportunity for investors to take advantage of this June anomaly.