Growth and Performance of Banking Sector at Dhaka Stock Exchange Limited (original) (raw)
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The stock market reactions on the release of financial statements have been subjected to many empirical studies in finance literature. In Bangladesh, a few studies have been documented market reaction to information. This paper examines the effect of financial performance announcement on share returns of firms listed at the Dhaka Stock Exchange by analyzing daily share prices and market returns for the period between 2011 and 2015. Using the event study methodology, secondary data is collected and analyzed on the basis of the market model. The results obtained indicate that the average abnormal returns were not significant at 5% significance level. Thus, it is not possible to earn abnormal returns using the information contained in the financial statements of banks enlisted in the Dhaka Stock Exchange.
Islamic Banking in Bangladesh: Current Status, Challenges and Policy Options
Islamic Banking in Bangladesh: Current Status, Challenges and Policy Options, 2015
In tandem with the global rapid expansion of Islamic banking, Bangladesh has experienced phenomenal growth in Islamic banking following strong public demand for the system. Since its inception in 1983, Islamic banking industry has recorded robust performance and the industry now accounted for more than twenty percent market share of the entire banking industry in Bangladesh. Though Islamic banking industry in Bangladesh has achieved more than 20 percent annual growth, the industry has immense potentials for further expansion as Bangladesh is a Muslim majority country with a vibrant economy of 6 percent real economic growth over the last decade. To reap the full potentials of Islamic banking, it is imperative to assess the present status of Islamic banking industry in Bangladesh. Given this, the present paper investigated the present status of Islamic banking industry and it also assessed its comparative performance with overall banking industry. To attain the objectives of the paper, required information/data have been collected from the secondary sources and financial ratio analysis approach has been applied. Finally, the paper shed light on challenges faced by the Islamic banking industry and prescribed policy options to meet the challenges.
Investigating the Performance of Islamic Banks in Bangladesh
2014
Around the world Islamic banking system is getting popularity gradually due to its multidimensional benefits. Consequently, many tradition banks have been converted (such as FSIBL and EIBBL) into Islamic Sharia’h based banks for the superiority of Islamic banking system. Thus, it is the curiosity of the investors, depositors, researchers and policy makers to know the performance of Islamic banks operating in Bangladesh. So, taking secondary data from the annual reports of the sample banks, the study has evaluated the performance of six Islamic banks listed at both Dhaka Stock Exchange (DSE) & Chittagong Stock Exchange (CSE) in terms of deposit; investment; foreign remittance collection; earnings per share (EPS); dividend declaration; dividend payout ratio; price earnings ratio (P/E) and net asset value (NAV). The study found that six Islamic banks have performed very well. Especially; Islami Bank Bangladesh Ltd. has shown outstanding performance in terms of every indicator. It is expected that the study will not only help the investors and depositors to make their decisions in more efficient way but also; it will motivate non-Islamic banks to convert their business mode according to Islamic Sharia’h.
Stock Price Reaction to Dividend Announcement: the Case of Bangladesh Capital Market
Journal of Economics and Sustainable Development, 2013
Stock price response towards the 'dividend announcement' is highly supported both by theoretically and empirically. Investors consider several factors in investing funds in any particular securities of capital market of which the most important factor is the return from the investment in securities that typically depends on the dividend declaration. Company declares dividend in the form of cash and/ or stock with in the financial year (quarterly or biannually) to meet the expectations of investors considering the ability and strategy of the company. In this paper, a thorough investigation is done with the help of 'event study methodology' to analyze the effect of dividend announcement on stock prices taking seventy four listed companies of Dhaka Stock Exchange (DSE) in Bangladesh. The study finds that dividend declaration does not bring any gain to the investors; rather they lose due to substantial fall in share prices both in pre dividend and post dividend period as market passes through regular and continuous revision of directives of regulators to check a bullish market. It is expected that the study will not only help in developing investors' awareness regarding stock price sensitivity towards dividend declaration, but also help to design their investment decision in a more rational, efficient and convenient way to protect their interest. Furthermore, it will help the companies to determine their good standing, aware investors in affluently designing their investment decision, and regulators, the prime policy makers, to take necessary initiatives for the betterment of all concerned.
Corporate disclosure means reporting of quantitative and qualitative information of financial and non-financial nature regarding the reporting entity to outsiders for the purpose of their decision making. Full disclosure is vital element for the interested parties who would like detailed information about a particular firm. The aim of present study, based on content analysis of selected 8 (eight) banks, is to measure the extent of disclosure score and also identify the impact of such disclosure score on bank's specific characteristics viz. age and size of the bank. A total of 210 items of information – 87 mandatory disclosure and 123 voluntary disclosure items are identified as a total disclosure index. An un-weighted disclosure index method (dichotomous procedure) is used to measure the level of disclosure in annual reports of sample banks. The outcome of the study reveals that during the study period, banks are widely distributed regarding the disclosure of accounting information. Results of multiple regression analysis prove that the extent of disclosure has significant positive association with commercial bank's age and size. Such results infer that banks with long-standing and large in size are disclosing more detailed information than others. Being the selected commercial banks are widely distributed regarding the disclosure of accounting information, the study suggests that all banks should use the International Accounting Standards (IAS) as accepted by the government of Bangladesh.