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Frontiers in Management Research
FMR > Volume 3, Number 3, July 2019

Effects of Corporate Disclosure on Share Price Movement: An Empirical Study on Listed Companies in Dhaka Stock Exchange

Download PDF  (259.6 KB)PP. 85-91,  Pub. Date:May 13, 2019
DOI: 10.22606/fmr.2019.33001

Author(s)
AHM Yeaseen Chowdhury, M Shahin Sarwar, Md. Kaysher Hamid
Affiliation(s)
Faculty of Business Studies, Bangladesh University of Professionals, Dhaka, Bangladesh
Faculty of Business Studies, Bangladesh University of Professionals, Dhaka, Bangladesh
Faculty of Business Studies, Bangladesh University of Professionals, Dhaka, Bangladesh
Abstract
The purpose of this study is to investigate the effects of corporate disclosure on share price movement of listed companies in Dhaka Stock Exchange (DSE) of Bangladesh. For this, 41 companies listed with DSE under different industries i.e. bank; cement and engineering; food, fuel and power; insurance; pharmaceuticals and chemicals; and textile, were studied for the period of 2016 and 2017. After calculating the immediate ten days average stock price of before and after dividend declaration day, this study has used paired samples t- test to find out the statistical mean difference of stock price for individual company and analysis of variance (ANOVA) test to find out the statistical significance of stock price movement across industry. After the analysis, this study has found no statistical valid effects of corporate disclosure on price movement for the selected listed companies in DSE. But, across the industry, this study has found statistically significant difference of price change between before and after corporate disclosure.
Keywords
Corporate disclosure, dividend announcement, DSE, price movement.
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