Psychological and Economic Determinants of Market Price of Shares - An Empirical Study on the Listed Pharmaceutical Companies in Bangladesh

Mohammad Rokibul Kabir; Faruk Bhuiyan; Shyfur Rhaman Chowdhury

Authors

Mohammad Rokibul Kabir
Faruk Bhuiyan
Shyfur Rhaman Chowdhury

Keywords:

capital market, earning per share and dividend rate, economic factors, psychological factors

Abstract

The paper is an attempt to identify the economic and psychological factors that impact the market price of shares of the listed Pharmaceutical companies in Dhaka Stock Exchange (DSE). More specifically this study aims at finding the extent to which factors like Earning per Share, Net Asset Value per Share, Dividend rate, Disclosures in Annual Report, Percentage of shares held by Public, Good news, Bad News etc influence the market price. The study reveals that about 68.1% of the variations in market price are explained by the above mentioned economic and psychological factors. Among different economic factors dividend rate has the most positive influence on the market price while among the psychology factors good news about a company is the most positively influencing factor. Findings also signify that the percentage of shares held by public, and bad news about a particular company negatively influence the market prices of shares of that particular company.

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Psychological and Economic Determinants of Market Price of Shares - An Empirical Study on the Listed Pharmaceutical Companies in Bangladesh. (2013). Global Journal of Management and Business Research, 13(26), 37-50. https://journalofbusiness.org/index.php/GJMBR/article/view/

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Author Biography

Mohammad Rokibul Kabir

Professor Mohammad Rokibul Kabir was born in Chittagong, Bangladesh in 1982.Professor Kabir is the Dean of the Faculty of Business and Entrepreneurship and Ex Director of Human Resource Development Institute (HRDI) of Daffodil International University (DIU). Dr. Kabir is an Adjunct Professor of Taylor’s University, Malaysia and Amity University, Mumbai. He is a Research Fellow of INTI International University, Malaysia. Before that he led the School of Business Administration of East Delta University (EDU), Bangladesh as the Associate Dean. He was the Director of ‘Center for Professional Development and Change’ of East Delta University. Before joining EDU, Professor Kabir served International Islamic University Chittagong (IIUC) as an Associate Professor and worked for ‘Center for Research and Publication’ of IIUC as a Research Fellow. Professor Kabir obtained BBA and MBA in AIS, MPhil in Financial Disclosures and PhD in Management Accounting Practices in the Manufacturing Industries of Bangladesh from University of Chittagong. He did his Post-Doctoral research on Blockchain Use Behaviour from Universiti Malaysia Perlis (UNiMAP). Dr. Kabir is a business-tech enthusiast that led him to do MSc in Data Analytics and Design Thinking for Business from East Delta University. He also completed MDP in Business Analytics from Indian Institute of Management Calcutta (IIMC). He obtained LLB from University of Information Technology and Sciences. Dr. Kabir is an advocate and a member of Chittagong Bar Association, Bangladesh. Professor Kabir is a distinguished academician and researcher with a diverse background spanning academia, industry, and legal practice. His leadership roles at Daffodil International University and affiliations with other academic institutions reflect his commitment to education and research. Dr. Kabir's extensive publication record and research interests demonstrate his expertise in accounting, business technology, education and finance. Additionally, his multidisciplinary approach, as evidenced by his post-doctoral research in blockchain use behavior and further studies in data analytics and design thinking, underscores his adaptability and forward-thinking mindset in addressing contemporary challenges in business and academia. Dr. Kabir has around sixty research publications in various peer-reviewed journals, covering topics such as accounting practices, business technology, education, and finance.

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