Journal of Financial Markets and Governance最新文献

{"title":"Exploring the trends and patterns of debt and equity financing through Initial Public Offering (IPO) in Bangladesh","authors":"M. Hossain","doi":"10.54728/2208231661261749/2307091688878528","DOIUrl":"https://doi.org/10.54728/2208231661261749/2307091688878528","url":null,"abstract":"Bangladesh is considered a fast-growing emerging economy and the new Asian Tiger. The need for fund in Bangladesh is largely met by banks, mainly due to the underdeveloped nature of the stock market and deterred public trust in it. While some studies stress the need for strengthening the debt and equity securities markets to fuel Bangladesh’s fast economic growth, capital financing through the primary market remains insignificant compared to that arising from the banking sector. Analyzing Bangladesh Securities and Exchange Commission’s long-term data from 1981 to 2022, this paper evaluates the trends and patterns of IPO financing in Bangladesh. Findings suggest that IPOs are much lower in number than what is needed and have not much picked up in recent years. Although the equity market has grown bigger over time, it has not expanded as required mainly due to inadequate importance assigned to it at the policy level and the two market crashes that occurred over the period. The debt market has the lowest visibility and functionality with only a few public issuances. Overall patterns indicate that the securities market historically remains of little significance in supplying capital funds for Bangladesh’s industrialization and economic growth. Findings call for taking a comprehensive approach to increase market size at both the supply and demand ends.","PeriodicalId":165664,"journal":{"name":"Journal of Financial Markets and Governance","volume":"22 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126173719","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Scope of a Common Trading Platform for Brokerage Firms in Bangladesh Capital Market","authors":"Sajjad Hossain Chowdhury, Md. Rashedul Islam","doi":"10.54728/2210061665054939","DOIUrl":"https://doi.org/10.54728/2210061665054939","url":null,"abstract":"Financial sector in Bangladesh has become digital friendly over the years, which has reflected on better customer satisfaction and operational efficiency. However, for Capital Market Intermediaries, this has not been reflected, except for some few major players. In this paper we are trying to identify the scope of a common digital platform which can be used for majority brokerage houses and the benefits this can provide. We have also tried to figure out the key considerations for which digital platforms have not been popularized yet and what can be done to popularize this. We believe that, with the support being provided by BSEC, a common platform can be readily introduced and can be introduced better customer satisfaction and operational management.","PeriodicalId":165664,"journal":{"name":"Journal of Financial Markets and Governance","volume":"2008 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-09-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125616649","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Bond Market Development in Bangladesh: Prospects, Challenges and Required Actions","authors":"F. Sultana","doi":"10.54728/2210061665045648","DOIUrl":"https://doi.org/10.54728/2210061665045648","url":null,"abstract":"Purpose – The purpose of this study is to focus on the present scenario of the bond market in Bangladesh and to explore prospects, challenges, and required actions to expand the market to support the growing economy and make it compatible globally. Design/methodology/approach – The qualitative research method is used for collecting and analyzing secondary data from different journals, news articles, working papers, conference papers, regulatory reports, etc. to focus on the existing bond market of Bangladesh and to find out challenges and scope for further development while recommending required actions through narrative inquiry. Findings – The bond market in this country is in a very niche phase compared to the global bond market as well as the Asian bond market, though the economy is booming. The bond market of our country is dominated by government debt securities rather than corporate debt securities. As of 2021, Bangladesh's bond market size stands at $18 billion compared to the global bond market size of $124 trillion. And compared to some East Asian and South Asian countries, the bond market size of Bangladesh is very low through percentage analysis of GDP. Study limitations – Only secondary data is evaluated and scrutinized for this study. Practical implications – For Bangladesh, the creation of the debt market is essential to build an efficient and compatible capital market. Other than the equity market, various financing vehicles need to be created and different financing modes need to be opened by the government or any other public and private concern for the development of mega infrastructural projects. Nowadays, to minimize the budget shortfall to undertake such mega projects, borrowing from the banking sector becomes essential. On the other hand, this market would also create an opportunity for investors as an alternative investment vehicle. Originality/value – This study focused on the current bond market scenario in Bangladesh and showed a comparative analysis of the bond market portfolio of our country with developed countries and other developing countries. The prospects and challenges of expanding the existing bond market and required future actions to build an effective bond market in Bangladesh are also recommended in this study.","PeriodicalId":165664,"journal":{"name":"Journal of Financial Markets and Governance","volume":"2011 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-09-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127369188","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Foreign Capital Inflows and Economic Growth of Bangladesh","authors":"Asmina Akter","doi":"10.54728//2208231661249003","DOIUrl":"https://doi.org/10.54728//2208231661249003","url":null,"abstract":"This study is conducted for showing the relationship between foreign capital inflows and the economic growth of Bangladesh. The main aim of this study is to find out the contribution of foreign capital inflows to the economic growth of Bangladesh. By applying the pairwise Granger causality test (1969) based on time series data for the last 20 years, this study found that there is no causality of GDP with different sources of foreign capital revealing that foreign capital inflows do not have any significant impact on the economic growth of Bangladesh. There is a unidirectional relationship between Foreign Direct Investment (FDI) and External debt and another unidirectional relationship is between External debt and Remittance (RM). This unidirectional relationship shows that FDI granger cause ED and ED granger causes RM. This relationship is shown that the source of foreign capital is moving together for Bangladesh. Bangladesh is one of the lowest foreign capital receivers compared to other Asian countries. So, to reap the benefits of foreign capital inflows like other developing and emerging economies Bangladesh should take proper policy and give incentives to investors to make it an attractive destination for foreign investors.","PeriodicalId":165664,"journal":{"name":"Journal of Financial Markets and Governance","volume":"20 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117018910","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The COVID-19 Pandemic and the Shift of Banks’ Marketing Preferences: Case of Listed Private Commercial Banks in Bangladesh","authors":"Dr. Tasmina Mahbub","doi":"10.54728/2208231661261514","DOIUrl":"https://doi.org/10.54728/2208231661261514","url":null,"abstract":"The COVID-19 pandemic has hastened the changes in patterns of service delivery worldwide, including banking. Lockdown and restricted physical presence posed formidable disruptions and challenges to the overall banking industry that required them to adopt a sustainable and innovative business model promptly to continue operations and to protect financial stability. In response to this crisis, all banks effectively reset their agenda by incorporating less human-interactive, a digital mechanism where the marketing team of the banks played a pivotal role by shifting their traditional marketing practices to digital techniques. The study examines the effect of this alteration and its implications by undertaking a survey of bank personnel of all the listed Private Commercial Banks (PCBs) in Bangladesh. A non-parametric Mann-Whitney Wilcoxon test identifies strong differences in expectations of marketing formats in the pre-pandemic and present periods. The analysis reveals statistically significant demographic differences of preference between older and younger marketing personnel in all banks; as well as between Islamic and Conventional Banks. The findings are a wake-up call for banks’ policymakers that have multifaceted implications in formulating alternative digital based marketing strategies to continue sustainability and to remain competitive in the long run.","PeriodicalId":165664,"journal":{"name":"Journal of Financial Markets and Governance","volume":"18 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-04-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124556875","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Prospects and Challenges of Bond in Bangladesh Capital Market: A Comparison with Asian Capital Markets","authors":"Sagira Sultana Provaty","doi":"10.54728/2208231661242297","DOIUrl":"https://doi.org/10.54728/2208231661242297","url":null,"abstract":"The bond market always plays a complementary role in allocating funds from surplus sectors to different deficit sectors. In Bangladesh, an efficient bond market can play a vital role in supplementing the banking system to meet the requirements of the corporate sector for long-term capital investment and asset creation while providing a steady source of finance in the event of equity market volatility. The study has explored the prospects and challenges of the bond market in Bangladesh using secondary data from abundant sources. The study has addressed that the amount of tradable government bonds is negligible, secondary trading of government bonds is infrequent, and there has been scarcely any public issue of corporate bonds. It is observed that the bond market remains mostly underdeveloped to finance the large infrastructural projects in Bangladesh. The study has also compared the bond market of Bangladesh with twelve Asian nations and revealed that Bangladeshi bond market appears to be very insignificant in terms of the size and the corporate bond to Gross Domestic Product (GDP) ratio relative to those of countries. There are a plethora of impediments to the expansion of the bond market in Bangladesh, which have been attributed to major structural issues such as low investor base, absence of benchmark yield curve, lack of investor awareness and high issuance cost. For the smooth operation of a deep and liquid bond market in Bangladesh, a comprehensive regulatory framework, bond investment-friendly administrative infrastructure, and augmented investor incentives are recommended. It is a message of optimism that the regulatory authority has already taken initiatives to introduce several bonds with various features to make the capital market more vibrant.","PeriodicalId":165664,"journal":{"name":"Journal of Financial Markets and Governance","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-04-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130613433","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Corporate Social Responsibility (CSR) Disclosures in Group Affiliated Firms and Politically Connected Family Firms: Empirical Evidence From a Traditional Society","authors":"Dr. Melita Mehjabeen, Tanisha Bukth","doi":"10.54728/2208231661261749","DOIUrl":"https://doi.org/10.54728/2208231661261749","url":null,"abstract":"This paper explores whether the political connections in group-affiliated firms and family firms have any impact on the corporate social responsibility disclosure (CSRD) practices in a traditional society. Using a total sample of 792 company year observations from the Dhaka Stock Exchange (DSE) from 2010-2018, this paper documents that the firms, which are group affiliated and which are family controlled, are positively significant to CSRD, indicating more disclosure of CSR information. However, when the family firms are politically connected, the CSRD is negatively significant. Without denying the benefits of alternative theoretical lenses adopted in disclosure studies, this paper tries to identify whether elements of “traditionalism” such as display of loyalty to master, domination and control, as characterized by (Weber, 1978), can be used to explain the determinants of social and environmental disclosure in developing/ traditional economy. This paper contributes to the CSR literature by providing an alternative theoretical perspective for traditionalist societies and connecting political affiliation and ties of family firms and group affiliated firms with CSR disclosure. It provides a deeper insight into the dynamics and interplay between group affiliated firms and family controlled firms, its ownership structures and governance mechanism with the disclosure practices in a traditional setting.","PeriodicalId":165664,"journal":{"name":"Journal of Financial Markets and Governance","volume":"34 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-04-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132684705","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Nexus between Price Earnings (P/E) Ratio and Financial Performance of Commercial Banks: Dynamic Panel Evidence from Bangladesh","authors":"Raad Mozib Lalon, T. Mahmud","doi":"10.54728/2112091639050362","DOIUrl":"https://doi.org/10.54728/2112091639050362","url":null,"abstract":"This paper aims to reveal the relationship between the determinants of financial performance and stock performance measured with reference to the Price-Earnings (P/E) ratio. It examines Panel Data of 10 years covering from 2010 to 2019 of seven Private Commercial Banks (PCBs) of Bangladesh enlisted in the Dhaka Stock Exchange (DSE). Several hypotheses and econometric models have been estimated with the Pooled Ordinary Least Squares (Pooled OLS), Generalized Least Squares (GLS), Fixed-effect, and Random-effect, followed by various diagnostic tests to examine the validity of the models selected for this study. Finally, the One-step Generalized Method of Moments (GMM) method has been adopted. The empirical investigation shows that among the entire set of the variables, only the Net Profit Margin (NPM) ratio has a significant impact on the P/E ratio under Random-effect, GLS, and Pooled OLS. Finally, the model developed for the One-step GMM method has revealed that the inclusion of the Lagged P/E ratio, Leverage, NPM ratio, Net Interest Margin (NIM) ratio, Asset Utilization Ratio, and Non-Performing Loan (NPL) ratio have a statistically significant dynamic impact on the P/E ratios of the PCBs. However, the Liquidity ratio and the Loans to Asset ratio divulged no statistical significance under any of the estimated models.This paper aims to reveal how determinants of financial performance affect the stock performance measured with Price-earnings ratio of the commercial banks enlisted in Dhaka Stock Exchange considering Panel Data of 10 years covering from 2010 to 2019 of seven private commercial banks of Bangladesh listed with DSE. Several hypotheses along with econometric models estimated with the Pooled OLS, GLS, Fixed-effect, Random-effect, and finally, One-step GMM method have been adopted followed by various diagnostic tests to examine the validity of the models selected for this investigation. The empirical investigation shows that, among the entire set of variables only Net Profit Margin ratio has significant impact on the P/E ratio under Random-effect, GLS and Pooled-OLS. Finally, the model developed for One-step GMM method has revealed that including lagged P/E ratio, the Leverage, NPM ratio, NIM ratio, Asset Utilization Ratio, and NPL ratio have statistically significant dynamic impact on the Price-earnings ratios of the commercial banks. However, liquidity ratio and Loans to Asset ratio divulged no statistical significance under any of the aforesaid models.","PeriodicalId":165664,"journal":{"name":"Journal of Financial Markets and Governance","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-12-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128079491","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"A Random walk down the Dhaka Stock Exchange lane","authors":"Md. Kamrul Bari, Dr. Melita Mehjabeen, Dr. A. K. Enamul Haque","doi":"10.54728/2112091639050575","DOIUrl":"https://doi.org/10.54728/2112091639050575","url":null,"abstract":"Market efficiency has always been a matter of keen interest to the researchers of finance. Since the advancement of this concept, researchers are consistently investigating the market efficiency of different financial markets. Bangladesh, being one of the emerging economies, has also attracted the attention of many researchers. The researchers have investigated the realities regarding the market efficiency of both the stock exchanges of the country. Most of their investigations reveal that the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) are inefficient. This research, however, did not stop at revisiting market efficiency alone. Whether the return series follows a long-memory process, has also been tested. Besides, non-parametric tests have also been conducted to confirm the results of the parametric tests and vice versa. It generated a more reliable estimate of market efficiency for the period under study. Results of the Autoregressive Fractionally Integrated Moving Average (ARFIMA) model confirm that the return series does not follow a long memory process, and any shock in the system will eventually vanish. The findings of other tests (the run test, the Augmented Dickey-Fuller (ADF) test, the Kwiatkowski–Phillips–Schmidt–Shin (KPSS) test, and the Kolmogorov-Smirnov (K-S) test) suggest that the return series of the DSE are time-series stationary, non-normal, and do not follow a random walk. Given these results, we must echo the prior researchers to conclude that the stock market of Bangladesh is not efficient for the period of 2015 to 2020. These findings add new knowledge to the existing knowledge pool about market efficiency and long memory of the stock market of Bangladesh.","PeriodicalId":165664,"journal":{"name":"Journal of Financial Markets and Governance","volume":"22 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-12-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127955314","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Local Stock Market Integration with International Gold and Oil Price","authors":"Kanon Kumar Sen, M. Abedin, Ratana Ghosh","doi":"10.54728/2112211640063256","DOIUrl":"https://doi.org/10.54728/2112211640063256","url":null,"abstract":"We look for the integration of Bangladesh Stock Market with international gold and oil price using most recent monthly data set from January 2003 to December 2020 (2003m1-2020m12). We employ the bounds-testing approach to cointegration between stock market index (DSEX) and international gold and oil price and eventually find an integration and dynamic significant impact of international gold and oil price on DSEX in the long and short-run. We discuss the important policy implications of the dynamic impact of international gold and oil price on stock market index.","PeriodicalId":165664,"journal":{"name":"Journal of Financial Markets and Governance","volume":"2009 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-12-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127335098","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}