Background: COVID-19 has devastated the normal way of life. It has been raging over the globe since late January 2020. So far, 212 nations and territories throughout the world have been reported to be impacted. The viciousness of community transmission has reached its apex. Almost every country is waging a costly economic war against this epidemic. The situation of economic normality is becoming increasingly questionable as the epidemic spreads uncontrollably. Objective: In this study our main goal is to evaluate the impact of COVID-19 in the capital market in Bangladesh. Method: Data of each trading day’s last return is collected from the DSE and CSE web library. DSE and CSE All Share price Index is collected on daily and monthly basis from 2018 to 2021. Results: The capital market developments of the DSE and CSE from June 2020 to June 2021 shows that Both the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) showed an increased trend in terms of index and turnover at the end of June 2021 compared to the end of May 2021. The DSE broad index and the CSE all-share price index increased to 6150.48 points and 17795 points at the end of June 2021, respectively, from 5990.99 points and 17359.57 points at the end of May 2021. At the end of June 2021, the total turnover value of DSE and CSE traded shares were BDT 435.09 billion and BDT 21.3 billion, respectively, which was 40.30 percent and 37.72 percent higher than in May 2021. Whereas the ratio of market capitalization to GDP (at current market price) stood higher at 18.39 percent* at the end of June 2021which was 18.02 percent at the end of May 2021. Conclusion: COVID-19 has presented significant concerns to economic regularity and financial market stability. Nonetheless, it is anticipated that the gloomy days would pass quickly. We must be prepared to battle on if this worst-case situation lasts longer than planned. General investors must also do their role in maintaining our market image and .........
Purpose: This study aims to contribute to this body of knowledge by examining the effect of product market competitiveness on enterprises' dependence on bank loans. Design/methodology/approach: To examine the effect of product market rivalry on loan selection, we look at a sample of Bangladeshi firms from 2010 to 2020. We limit our research to publicly traded corporations since they often choose between public and private debt. The generalized least square (GLS) model is applied to identify the effect of product market competitiveness on enterprises' dependence on bank loans. Findings: Using a sample of 60 firms, between 2010 and 2020, we discovered that product market competition encouraged enterprises to rely less on bank loan funding. Additionally, we demonstrate that competitive pressure has a more significant impact on debt selection for firms that are more exposed to competition, face more significant financial constraints, and have less robust governance practices. Additionally, we observe a correlation between competition in the product market and long-term maturity debt. A critical insight we establish in our study is that external governance pressure from the product market can act as a replacement for the monitoring of bank debt. Research limitations/implications: Despite the DSE having 308 listed businesses, the study only considers the top 60 as market capitalization. As a result, the small sample size may limit the generalizations that can be derived from our findings. Another disadvantage is that the study only looked at cement businesses, even though the DSE has a variety of companies listed. Originality/value: Our research paper contributes to the existing literature on Product Market Competition and Debt Choice in an emerging market like Bangladesh. To the best of the authors' knowledge, no study has yet been conducted on the Product Market Competition and Debt Choice for taking five-year financial statements in Bangladesh.
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