Predictability of Share Prices through Corporate Annual Reporting: A Focus on the Dhaka Stock Exchange

By Anup Kumar Saha, Ashiquer Rahman Bhuiyan

This paper investigates the relationship between corporate performance indices found in corporate annual reports and stock price fluctuations in the Dhaka Stock Exchange (DSE).

The study analyses disclosures regarding Earnings Per Share, Net Asset Value per Share, Price Earnings ratio, Net Profit After Tax, Declaration of Dividends, and Dividend Yield Ratio made by companies in their corporate annual reports and investigates the relationship of these indices to the stock price fluctuation of those companies.

This research found that Dividend Yield Ratio (1% sig.) and Earnings Per Share (5% sig.) are positively related with share price. This paper concludes that share prices in the DSE rarely have any relationship with disclosures of the above corporate performance indices (r2 = .184) and as such these indices should not be the sole criteria on which to base stock investment decisions.

Download PDF JAMARv12.2-Stock Price Indicators


About Prof Janek Ratnatunga 1129 Articles
Professor Janek Ratnatunga is CEO of the Institute of Certified Management Accountants. He has held appointments at the University of Melbourne, Monash University and the Australian National University in Australia; and the Universities of Washington, Richmond and Rhode Island in the USA. Prior to his academic career he worked with KPMG.

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