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Determining Stock Return movements of Banking Sector during Global Financial Crisis: An Examination on Emerging Markets of Bangladesh

Author

Listed:
  • Rafiqul Bhuyan
  • Mohammad Sogir Hossain Khandoker
  • Mahjuja Taznin
  • Md. Shanur Rahman
  • Lamia Akter

Abstract

The objective of the study is to explore various micro and macro variables that affect stock returns of the Dhaka Stock Exchange surrounding the global financial crisis. We collect a sample of 30 listed banks covering the period of 9 years (2009 – 2017) for our study. The results indicate that debt to asset ratio (D/A), market capitalization (MKT CAP), interest rate, and foreign exchange rate (ForEx Rate) have positive and significant relationships with stock returns. On the other hand, inflation and leverage have negative and significant influence on stock returns among the eight micro variables and four macroeconomic variables that were used in our analyses.

Suggested Citation

  • Rafiqul Bhuyan & Mohammad Sogir Hossain Khandoker & Mahjuja Taznin & Md. Shanur Rahman & Lamia Akter, 2021. "Determining Stock Return movements of Banking Sector during Global Financial Crisis: An Examination on Emerging Markets of Bangladesh," Bulletin of Applied Economics, Risk Market Journals, vol. 8(2), pages 111-123.
    • Handle: RePEc:rmk:rmkbae:v:8:y:2021:i:2:p:111-123
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    References listed on IDEAS

    as
    1. Rangan Gupta & Monique Reid, 2013. "Macroeconomic surprises and stock returns in South Africa," Studies in Economics and Finance, Emerald Group Publishing Limited, vol. 30(3), pages 266-282, July.
    2. Adam, Anokye M. & Tweneboah, George, 2008. "Macroeconomic Factors and Stock Market Movement: Evidence from Ghana," MPRA Paper 11256, University Library of Munich, Germany.
    3. Mansor H. Ibrahim & Hassanuddeen Aziz, 2003. "Macroeconomic variables and the Malaysian equity market: A view through rolling subsamples," Journal of Economic Studies, Emerald Group Publishing, vol. 30(1), pages 6-27, January.
    4. Faruque, Omar & Islam, Md. Rafiul, 2018. "Security Analysis of Banking Industry in Bangladesh," Asian Business Review, Asian Business Consortium, vol. 8(1), pages 21-24.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Microeconomic & Macroeconomic Variables; DSE; OLS; Stock Returns and Panel data;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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