Stock price reaction to dividend announcement: An empirical study on Dhaka Stock Exchange (DSE)

Zahan, Arafat; Rana, Md. Shohel

doi:10.31039/jomeino.2020.4.2.1

Cited by 5 publications

(6 citation statements)

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“…It means EPS has a significant impact on the MVPS similar to the result found by Omokhudu and Ibadin (2015); 2018) but varying Ghosh and Ghosh (2015). The beta coefficient of CDPS and SDPS are 0.174 and 0.192, with a p-value of 0.946 and 0.990, respectively, which are statistically not significant varying Omokhudu and Ibadin (2015); Zahan and Rana (2020) and Olowolaju and Ogunsan (2017). Finally, it can be said that NOCFPS, NAVPS, and EPS have a significant impact, while CDPS and SDPS have no significant impact on the MVPS.…”

Section: Regression Analysismentioning

confidence: 50%

“…(2018) but varying Ghosh and Ghosh (2015). The study also found that CDPS and SDPS were positively insignificantly correlated varying Omokhudu and Ibadin (2015); Zahan and Rana (2020) and Olowolaju and Ogunsan (2017). The NOCFPS, NAVPS, and EPS have a statistically significant impact on the MVPS.…”

Section: Discussionmentioning

confidence: 71%

“…Tharmila and Nimalathasan (2013) found a significantly influence of EPS and NAVPS on the market value of share. Zahan and Rana (2020) conducted a research in Bangladesh and concluded that dividend announcement significantly influences the stock price. Hassan and Haque (2017) also conducted a research in Bangladesh and argued that EPS and BVPS play a significant role in determining share prices.…”

Section: Literature Reviewmentioning

confidence: 99%

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2021

Journal of Asian Business Strategy

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This study intends to determine the Value relevance of accounting information (VRAI) that emphasizes the impact of different information produced by accounting on the market price of the share. This paper tries to determine the VARI on pharmaceutical companies' share price at the Dhaka Stock Exchange (DSE) of Bangladesh. For this purpose, I have collected data from different Pharmaceutical companies listed under the DSE for the period starting from 2017 to 2019. In this study correlation, ANOVA and regression analysis are applied to ascertain the association between Financial Accounting Information like Earnings per Share (EPS); Net Operating Cash Flow Per Share (NOCFPS); Net Asset Value Per Share (NAVPS); Cash Dividend Per Share (CDPS), and Stock Dividend Per Share (SDPS) and Market Value Per Share (MVPS). The results confirmed a statistically significant positive relationship of NOCFPS, NAVPS with MVPS. Differently, the results also confirmed a statistically significant negative relationship between EPS and MVPS. The results also ascertained that CDPS, and SDPS have no significant but positive relationship with MVPS. Finally I concluded that the information produced by accounting systems are value relevance and important in decision making. The existing literature of VRAI will enrich by results of this study. This study recommends the existing and potential investors to use accounting information for taking efficient and effective investment decisions. Contribution/ Originality:This study is one of the very few studies examining the VRAI on pharmaceutical companies listed in the DSE in Bangladesh. This research is one of the primary studies in Bangladesh in pharmaceutical sector. INTRODUCTIONThe VRAI is the importance of accounting information on investment decisions on stocks. Investors invest their capital and want to ensure that there principle amount and return on investment will come back quickly. Expectation of positive rate of return is an essential part of investment (Hossain, 2013). For this, before investing in stock, they want to know the ability and strength of the company. They need accurate information about the companies for making a proper decision. (Hossain, 2020b) argued that the key expectation of the investors is to make certain the getting back of investment along with return timely. The different financial reports and disclosures of the company are the main sources of information for the investors. Companies provide different accounting information timely for the investors concerned about the company's performance and present condition.

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Section: Regression Analysismentioning

confidence: 50%

Section: Discussionmentioning

confidence: 71%

Section: Literature Reviewmentioning

confidence: 99%

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2021

Journal of Asian Business Strategy

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“…In this way, a few tests have been performed to discover whether the offer market responds fittingly with the declaration of significant data. Ahsan et al (2003) has directed one such examination on recorded protections in Dhaka Stock Exchange by fostering the accompanying invalid theory that "there is no huge distinction in share cost increment and decline previously, then after the fact the declaration of procuring." The test has been led at a 5% importance level.…”

Section: Literature Reviewmentioning

confidence: 99%

Interdependent Trading Behavior of Foreign and Local Investors: Evidence from the Colombo Stock Exchange

Dharmarathna

Dewasiri

Rajapaksha

2022

Asian J. Mgt. Stud.

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This study examines the interdependent trading behaviour of investors in foreign and local contexts with a particular reference to the Colombo Stock Exchange (CSE) of Sri Lanka to fill up the gap in the local literature regarding behavioural aspects and independence among foreign and local investors within their investment policies, procedures, and actions. Based on secondary data collected from a statistical sample drawn from daily trading statistics of CSE, covering both buying and selling actions of local and foreign investors for the period from 2007 to 2019, this study has examined the nature of four main investor groups namely foreign institutions, foreign individuals, domestic institutions, and domestic individuals in terms of daily purchases turnover, sales turnover, share volume traded purchases, and share volume traded sales data. The results showed that the local investors are quite irrational concerning the foreign investors. Hence, foreign investors' interdependence on local investors' behavioural information is weak. Local investors also highly rely on their trading behavior instead of being vigilant about the trading behaviour of foreign investors.

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“…However, these take time to learn the market. Moreover, it is hard to consider diverse parameters like cash bonus, dividends and earning per share in the learning state whereas bonus and dividend attract investors significantly [25,26] . Investor does not understand all issues related to a learning system.…”

Section: Introductionmentioning

confidence: 99%

A Predictive Investment Scheme for Dhaka Stock Exchange

Kamal

Abdullah

2022

digit. tech. res. and appl.

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Stock market plays a vital role in industrial development of a country. People invest money to make profit from market. Inexperience investors cannot yield profit due to their weak predictions. This research tries to understand the nature of those investors and their demands. Most investors first analyze the prospect of companies based on rate of up-down in prices of share, given bonus, companies’ goodwill, temptation by others, etc.. This research presents a good prediction methodology for the stock market investors and thus, will help them to achieve a profit. It will improve the stability of a market.

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Stock price reaction to dividend announcement: An empirical study on Dhaka Stock Exchange (DSE)

Cited by 5 publications

References 1 publication

Untitled

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Interdependent Trading Behavior of Foreign and Local Investors: Evidence from the Colombo Stock Exchange

A Predictive Investment Scheme for Dhaka Stock Exchange

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