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An Investigation, Measurement, and Evaluation on the Stock Market Crisis, Performances and Their Initiatives: a Study on the Investors’ Perceptions by Md Global Journal of Management and Business Research: C Finance Volume 16 Issue 8 Version 1.0 Year 2016 Type: Double Blind Peer Reviewed International Research Journal Publisher: Global Journals Inc. (USA) Online ISSN: 2249-4588 & Print ISSN: 0975-5853 An Investigation, Measurement, and Evaluation on the Stock Market Crisis, Performances and their Initiatives: A Study on the Investors’ Perceptions By Md. Mohiuddin, Md. Zainal Abedin & Mohammod Naymur Rahman Z.H. Sikder University of Science & Technology Abstract- Capital market (Dhaka Stock Exchange and Chittagong Stock Exchange) have multiple and significant roles in the development of nation’s economy. They provide avenues for investment and capital acquisition and can provide an indication of overall economic condition (Stock Market Crisis: Hasan; The Financial Express, 12 July 2012). The stock market is the engine of growth for an economy, and performs a critical role in acting as an intermediary between savers and companies seeking additional financing for business expansion. Vibrant capital is likely to support a robust economy. While lending by commercial banks provides valuable initial support for corporate growth, a developed stock-market is an important pre- requisite for moving into a more mature growth phase with more sophisticated conglomerates. Keywords: BSEC, DSE, CSE, IPO, BB, capital market, DEC-mobile, DSEX, NASDAQ, demutualization. GJMBR-C Classification: JEL Code: D53 AnInvestigationMeasurementandEvaluationontheStockMarketCrisisPerformancesandtheirInitiativesAStudyontheInvestorsPerceptions Strictly as per the compliance and regulations of: © 2016. Md. Mohiuddin, Md. Zainal Abedin & Mohammod Naymur Rahman. This is a research/review paper, distributed under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License http://creativecommons.org/licenses/by- nc/3.0/), permitting all non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited. An Investigation, Measurement, an d Evaluation on the Stock Market Crisis, Performances and their Initiatives: A Study on the Investors’ Perceptions Md. Mohiuddin α, Md. Zainal Abedin σ & Mohammod Naymur Rahman ρ 2016 Abstract- Capital market (Dhaka Stock Exchange and To do this Five-Point Likert Scale has been used to survey Chittagong Stock Exchange) have multiple and significant investors. The study actually reveals the state of actual stock ear Y roles in the development of nation’s economy. They provide exchange crisis and performance from the view point of avenues for investment and capital acquisition and can secondary data and investors and the initiatives taken by the 1 provide an indication of overall economic condition (Stock DSE against critical situations. The study also focused to the Market Crisis: Hasan; The Financial Express, 12 July 2012). extent that whether their (BSEC, DSE and CSE) activities, The stock market is the engine of growth for an economy, and performance and initiatives and the defined investors performs a critical role in acting as an intermediary between perception can create positive impact on their (investors) mind savers and companies seeking additional financing for and be able to create positive contribution on Stock Market business expansion. Vibrant capital is likely to support a robust Crisis and the building of good brand image of the DSE and economy. While lending by commercial banks provides CSE. A sample of 100 investors and some selective samples valuable initial support for corporate growth, a developed have been surveyed since they represent all investors stock-market is an important pre-requisite for moving into a segments in the industry. more mature growth phase with more sophisticated Keywords: BSEC, DSE, CSE, IPO, BB, capital market, conglomerates. Today, with a $3.41 Trillion TK economy and DEC-mobile, DSEX, NASDAQ, demutualization. per capita income of roughly $1466, Bangladesh should really focus on improving governance and developing advanced I. bjectives of the tudy O S market products, such as derivatives, swaps etc. Despite a Broad objective C challenging political environment and widespread poverty, The main objectives of the study are to () Bangladesh has achieved significant milestones on the social development side. With growth reaching 7.05 percent in 2016, investigate, measure, and evaluate the stock market the economy has accelerated to an impressive level. It is Crisis, performances, activities, and initiatives from the noteworthy that the leading global investment banks, Citi, reflection light of secondary data and investors’ Goldman Sachs, JP Morgan and Merrill Lynch have all perceptions. identified Bangladesh as a key investment opportunity. The Dhaka Stock Exchange Index is at a 11 month high last Specific Objectives October 14, 2015, however, the capital market in Bangladesh . To investigate the reasons for the stock market is still underdeveloped, and its development is imperative for full realization of the country's development potential. It is crisis and the impact of it on investors. encouraging to see that the capital market of Bangladeshis is . To sort out the reasons for the crisis. growing, albeit at a slower pace than many would like, with . To find out the investors knowledge on capital market development still at a nascent stage. The market has market. seen a lot of developments since the inception of the . To motivate the investors doing analysis rather than Securities and Exchange Commission (SEC) renamed as Bangladesh Securities and Exchange Commission (BSEC) on running after rumor. December 10, 2012. After the bubble burst of 2011, the capital II. Methodology of the Study market has attracted a lot more attention, importance and awareness that have led to the infrastructure we have in the a) Research Approach market today. All over the world, Stock Exchanges recognizes their investors need and motivate them to invest properly. The • This is a quantitative research, in some cases Global Journal of Management and Business Research Volume XVI Issue VIII Version I study investigates, measure, and evaluates the stock market qualitative approach has been applied. Crisis, performances, activities, and initiatives from the • At first phase an exploratory research has been reflection light of secondary data and investors’ perceptions. conducted to understand the nature of problem and Author α: Lecturer, Department of Business Administration, Z. H. Sikder its subcomponents. University of Science & Technology, Bangladesh Author σ: Assistant Professor, Department of Business Administration, b) Sources of Data Z. H. Sikder University of Science & Technology, Bangladesh To meet the research objectives both primary Author ρ: Lecturer, Department of Business Administration, Z. H. Sikder University of Science & Technology, Bangladesh and secondary sources of data have been used. ©2016 Global Journals Inc. (US) An Investigation, Measurement, and Evaluation on the Stock Market Crisis, Performances and their Initiatives: A Study on the Investors’ Perceptions Prim ary Source restricted by the rules and regulations. They take part in i. A model questionnaire has been developed to elicit the placement of shares. Retail investors are those who essential data. The Questionnaire is structured in invest in the market with a view to earning profit. Their nature and is based on Likert Scale method. capital is not defined or confined by any laws or means. Population: All investorsin share market and some They are invited by the companies to participate in the selective investors. IPO. After the IPO, the shares enter into the secondary market for transaction. In the recent collapse of share Sampling technique: Convenience sampling technique market, the retail investors are the main victims. The was used to select investors. institutional investors are being accused of taking part in Sample Size: Total 100 investors. destroying the market (MOF, 2011). ICB has more than Survey area: Dhaka and Chittagong thirty thousand accounts to facilitate the institutional ii. Informal interviews with industry experts and investors, whereas more than three hundred thousand managers of BSEC, DSE and CSE. people are involved in the share market. That means 2016 iii. Observation of investors while investing in capital there are more than 30 lakh small investors in our ear market. country. Y 2 Secondary Sources b) Stock Market Collapses in 1996 & 2011 • Books and articles on stock markets and financial Most of the countries’ stock markets have institutions confronted the taste of collapse at least once. In 2000, London Stock Exchange and American Stock Exchange • Website of BSEC, DSE, CSE and others. encountered the collapse. Economic recession all over • Newspapers, Magazines and government’s source. the world caused the share market collapse in America Data Analysis Techniques and Europe. But Bangladesh protected itself from this scenario due to very little foreign investment in this • Excel and SPSS software has been used to analyze data country. After 1996 collapse in the share market, a • Variou s statistical methods and formulae have been used. neutral Inspection Committee was formed with a view to • Different Graphs, Tables, Charts and others investigating the reasons behind the market collapse. instruments are used to make presentable the Munir Uddin, an FCA, was the chief of that committee. research results (Findings). He opined that the collapse of 1996 was the result of the C activities of a group
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