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Financial Indicators Shaping Share Price Movement: Insight from the Dhaka Stock Exchange SME Board

Author

Listed:
  • Md. Yousuf Ahammed

    (Department of Business Administration, Bangladesh Army International University of Science and Technology, Cumilla, Bangladesh)

  • Md. Ariful Haque Chowdhury

    (Department of Business Administration, Bangladesh Army International University of Science and Technology, Cumilla, Bangladesh)

  • Md. Tahidur Rahman

    (Department of Business Administration, Bangladesh Army International University of Science and Technology, Cumilla, Bangladesh)

  • Shayla Tazminur

    (Department of Business Administration, Bangladesh Army International University of Science and Technology, Cumilla, Bangladesh)

Abstract

This study intends to explore the parameters that influence the share price movement of companies listed under the SME board on Dhaka Stock Exchange (DSE). The small capital platform, popularly known as the SME board is a specialized to trade share of Small and Medium Sized Enterprises (SMEs). Based on secondary data, the present study used three independent variables, such as Earning Per Share (EPS), Price Earning (P/E) ratio, and Net Asset Value (NAV) per share to evaluate the fluctuations of share price in the market. All the companies listed on the DSE SME board were taken into consideration for the current study. Relevant Data concerning dependent and independent variables were collected from the DSE website. Average closing price of selected shares were collected during March 15, 2022–March 14, 2023. The study performed descriptive statistics, correlation, and regression analysis using Statistical Package for Social science (SPSS) software. The study revealed that the fluctuations of share price of SME companies was significantly influenced by EPS, Net Asset NAV per share, and P/E ratio. This maiden study is expected to have implications to companies intending to be listed, investors, regulators, and other stakeholders in Bangladesh.

Suggested Citation

  • Md. Yousuf Ahammed & Md. Ariful Haque Chowdhury & Md. Tahidur Rahman & Shayla Tazminur, 2024. "Financial Indicators Shaping Share Price Movement: Insight from the Dhaka Stock Exchange SME Board," International Journal of Economics and Financial Issues, Econjournals, vol. 14(6), pages 267-272, October.
    • Handle: RePEc:eco:journ1:2024-06-29
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    References listed on IDEAS

    as
    1. Ahmed Imran Hunjra & Muhammad Shahzad & Muhammad Irfan Chani & Sabih ul Hassan & Umer Mustafa, 2014. "Impact of Dividend Policy, Earning per Share, Return on Equity, Profit after Tax on Stock Prices," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 2(3), pages 109-115, March.
    2. Basu, S, 1977. "Investment Performance of Common Stocks in Relation to Their Price-Earnings Ratios: A Test of the Efficient Market Hypothesis," Journal of Finance, American Finance Association, vol. 32(3), pages 663-682, June.
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    4. Niladri Das & J.K. Pattanayak, 2009. "Analysis of the fundamental factors affecting the market price of shares constituting the Indian index: a study of SENSEX," International Journal of Accounting and Finance, Inderscience Enterprises Ltd, vol. 1(3), pages 323-355.
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    More about this item

    Keywords

    EPS; P/E Ratio; NAV per Share; DSE SME Board;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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