Determinants of market price of stock: A study on bank leasing and insurance companies of Bangladesh

Journal of Modern Accounting and Auditing
Jul. 2009, Vol.5, No.7 (Serial No.50)

AUTHOR:
Mohammed Belal Uddin

ABSTRACT:

Financial firms make up a substantial fraction of the domestic equity market. A number of studies subsequently used different conceptual and methodological approaches to model equity return of financial services firms. Movement of the stock price as the consequence of the movement of the micro and macroeconomic factors is strongly supported by the literature review. Dhaka Stock Exchange in Bangladesh is inefficient in weak form. Multiple regression analysis is conducted to find out the relationship microeconomic factors with the stock price. In this study found a significant linear relationship among market return and some microeconomic factors such as net asset value per share, dividend percentage, earning per share of bank  leasing and insurance companies. Also found non-linear relationship among the variables is insignificant at 95 percent level of significance.

Key words: market price of stock; earning per share; dividend percentage; net asset value per share

FULL TEXT: FREE DOWNLOAD