Margin Requirements and Stock Market Volatility in Bangladesh
Journal Title: SDMIMD Journal of Management - Year 2012, Vol 3, Issue 2
Abstract
Officially margin requirements in bourses in Bangladesh were initiated on April 28, 1999, to limit the amount of credit available for the purpose of buying stocks. The goal of this paper is to measure the impact of changing margin requirement on stock returns' volatility in Dhaka Stock Exchange (DSE). The impact of margin requirement on stock price volatility has been extensively studied with mixed and ambiguous results. Using daily stock returns, we found mixed evidence that SEC's margin requirements have significant impact on market volatility in DSE.
Authors and Affiliations
A. F. M. Mainul Ahsan, Mohammad Osman Gani, Md. Bokhtiar Hasan
Keywords
Related Articles
- EP ID EP573230
- DOI 10.18311/sdmimd/2012/2741
- Views 125
- Downloads 0
Does Lintner model of dividend payout hold good? An Empirical evidence from BSE SENSEX firms.
This study primarily investigates into as to what influenced the dividends payment of BSE constituent companies for the years 2002 through as latest as 2011. The primary model used is that of Lintner (1956) with addition...
Determinants of Domestic Tourism Growth in India
In this paper we aim to empirically identify the determinants of tourist destinantion by domestic tourists that leads to growth of tourism in Indiagers in India . Our sample, broadly. from the south revealed that climate...
A New Approach to Event Study Methodology to Evaluate and Measure the Impact of M&A Activity of Indian Banks on the Wealth Status of Shareholders
The event study methodology is extensively used to evaluate the impact of Merger & Acquisition activity on the wealth status of shareholders. This method, as shown in this paper, suffers from serious conceptual deficienc...
Case: Ship of Hope in a Valley of Woes
The case is about the pioneering and innovative work done by an NGO called "Centre for North-East Studies (C-NES)" in creating health-care delivery system to the 3 million people living in the 2500 island villages in the...
Financing Small and Medium Enterprise: A case study of BASIC Bank Ltd
The study was undertaken with the objective of analyzing the present Status of SME finance by BASIC Bank Ltd, Uttara Branch, and Dhaka. The data for the study were collected both from primary as well as secondary sources...