ISSN: IJSB: 2520-4750 (Online), 2521-3040 (Print); JSR : 2708-7085 (online)

Association of Accounting Information and Stock Price of Non-Banking Financial Institutions of Bangladesh

 Author (s)

Farzana Haque Boby & Mohammed Sahed Hosen

Abstract

Our study is intended to look into the association between accounting information and market stock price for the Non-Banking Financial Institutions (NBFI) listed on the Dhaka Stock Exchange. For this study purpose, we take 12 Non-Banking Financial Institutions (NBFI) out of 23 listed companies. For this study purpose, Ohlson ‘s (1995) basic valuation model has been used. Multiple and simple linear regression technology is used to ascertain the explanatory power of independent variables on the dependent variable. Data analysis is carried out in IBM SPSS v. 20 software. Estimated regression coefficients and adjusted R2 of accounting information are tested in this model. Here we take Earning per share (EPS), Return on Asset (ROA), Return on Equity (ROE), and Book Value (BV) per share are independent variables and Market share price as the dependent variable. Findings from this study indicate that all the independent variables have the influencing power in forecasting the share prices. From the individual effect analysis, it is clear that EPS and ROA are the most influential variables for determining the stock price for this selected industry. Thus, among the four independent variables EPS and ROA are considered the most value-relevant accounting information for equity investors.

Keywords: Earning per share (EPS), Return on Asset (ROA), Return on Equity (ROE), Book Value (BV) per share, Market share price.

Download PDF

Title: Association of Accounting Information and Stock Price of Non-Banking Financial Institutions of Bangladesh
Author: Farzana Haque Boby & Mohammed Sahed Hosen
Journal Name: International Journal of Science and Business
Website: ijsab.com
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI: https://doi.org/10.58970/IJSB.2151
Media: Online & Print
Volume: 26
Issue: 1
Issue publication (Year): 2023
Acceptance Date: 29/05/2023
Date of Publication: 01/06/2023
PDF URL: https://ijsab.com/wp-content/uploads/2151.pdf
Free download: Available
Page: 1-09
First Page: 1
Last Page: 09
Paper Type: Research paper
Current Status: Published

 

Cite This Article:

Farzana Haque Boby & Mohammed Sahed Hosen (2023). Association of Accounting Information and Stock Price of Non-Banking Financial Institutions of Bangladesh. International Journal of Science and Business, 26(1), 1-09. doi: https://doi.org/10.58970/IJSB.2151

Retrieved from https://ijsab.com/wp-content/uploads/2151.pdf

 

About Author (s)

Farzana Haque Boby (corresponding author), Department of Business Administration, Dhaka Commerce College, Mirpur-1216, Dhaka. Bangladesh.

 Mohammed Sahed Hosen, Department of Business Administration, Dhaka Commerce College, Mirpur-1216, Dhaka. Bangladesh.

 

Download PDF

DOI: https://doi.org/10.58970/IJSB.2151

This Post Has Been Viewed 1,717 Times

Copyright @ IJSAB-International