8 research outputs found
Optimal Portfolio Construction: Application of Sharpe's Single-Index Model on Dhaka Stock Exchange
Get PDFThis study aims to find whether Sharpe's single-index model of portfolio construction offers better investment alternatives to the investors of the Dhaka Stock Exchange (DSE). For this purpose, month-ended closing price data of 178 companies listed on the DSE, the prime bourse of Bangladesh, and the month-ended index value of DSEX have been used for the period starting from January 2013 to February 2018. The stocks selected for this study belong to 16 industrial sectors, and purposive sampling technique has been used to select these sectors. Sharpe's model formulates a unique cut-off rate and selects the stocks having an excess return-to-beta ratio above that rate. In this study, 54 stocks qualified to be a part of the optimal portfolio. Hence, the proportion of investment to be made on each of the stock is calculated according to the model. The study reveals that three industries occupy a hefty chunk (65.78%) of the proposed investment portfolio. The constructed portfolio offers a monthly return of 2.1489% and carries 1.9516% risk as measured by standard deviation. The beta of the optimal portfolio is only 0.124003. The constructed portfolio outperforms every individual stock as well as the market index in terms of offering the optimal risk-return combinations. Therefore, this five-and-a-half-decade-old model offers a great opportunity for Bangladeshi investors to optimize return and diversify risk in an efficient manner
Optimal portfolio construction using sharpe’s single-index model: evidence from chittagong stock exchange
No full textThe study aims to apply Sharpe’s single-index model of portfolio construction and evaluate the model’s performance on the securities traded on Chittagong Stock Exchange (CSE). For this purpose, the last seven years' daily closing price data of 122 sample securities as well as the daily closing index value of the benchmark market index, CASPI, has been utilized. Sharpe’s model smoothens the intricate process of portfolio construction by suggesting a unique number, called the cutoff rate, to measure the desirability of each security’s inclusion in the final portfolio. In this study, 38 securities qualified to be a part of the final portfolio, hence, the optimal investment weight for each of them is calculated. An industry-wise analysis reveals that four industries account for about 68 percent of the final portfolio weight. The constructed portfolio yields a daily mean return of 0.1095 percent, which is equivalent to about 49 percent in effective annual terms. The overall portfolio risk, indicated by standard deviation, is found to be only 0.6425 percent. The portfolio beta of 0.3496 also indicates that there is significant nonexistence of systematic risk. An evaluation of the portfolio parameters explicitly reveals that it has outperformed every sample security as well as the market index, in offering the best risk-return combinations, by a large margin. Therefore, the study found Sharpe’s model of portfolio construction highly effective in optimizing risk and return in the context of CSE
CRM Dimensions Affecting Customer Satisfaction in Bangladeshi Banking Industry: A Structural Equation Modeling Approach
Get PDFFor the banking sector in Bangladesh, achieving customer-focused business objectives is a critical ingredient for success in order to reign over the increasingly competitive market. This prompted us to illuminate the underlying dimensions of Customer Relationship Management that influence the customer satisfaction. Accordingly, Structural Equation Modeling was employed on a sample size of 210 aiming to identify those factors, explore interdependence amongst them and assess their combined effect on customers’ satisfaction. In this regard, three latent variables were identified, namely customer orientation, customer experience and service process. The result signifies that among the chosen three factors, customer orientation and customer experience are proven to have significant impact on each other and on customer satisfaction concertedly while the other factor- service process has been proven statistically insignificant. The research findings provide empirical support for the conjecture that CRM dimensions pave the way for the firms towards improving customer satisfaction. Besides, our research contributes to empirically valid theory by synthesizing insights from the marketing and information systems literature and by investigating the effect of organizational variables that leverage CRM investments. The implications of the findings on the part of the banking industries and directions for future research are also put forward. Keywords: Bangladesh, Customer Relationship Management, Customer Satisfaction, Customer Orientation, Customer Experience, Service Process
Optimal Portfolio Construction using Sharpe’s Single-Index Model: Evidence from Chittagong Stock Exchange
Get PDFThe study aims to apply Sharpe’s single-index model of portfolio construction and evaluate the model’s performance on the securities traded on Chittagong Stock Exchange (CSE). For this purpose, the last seven years' daily closing price data of 122 sample securities as well as the daily closing index value of the benchmark market index, CASPI, has been utilized. Sharpe’s model smoothens the intricate process of portfolio construction by suggesting a unique number, called the cutoff rate, to measure the desirability of each security’s inclusion in the final portfolio. In this study, 38 securities qualified to be a part of the final portfolio, hence, the optimal investment weight for each of them is calculated. An industry-wise analysis reveals that four industries account for about 68 percent of the final portfolio weight. The constructed portfolio yields a daily mean return of 0.1095 percent, which is equivalent to about 49 percent in effective annual terms. The overall portfolio risk, indicated by standard deviation, is found to be only 0.6425 percent. The portfolio beta of 0.3496 also indicates that there is significant nonexistence of systematic risk. An evaluation of the portfolio parameters explicitly reveals that it has outperformed every sample security as well as the market index, in offering the best risk-return combinations, by a large margin. Therefore, the study found Sharpe’s model of portfolio construction highly effective in optimizing risk and return in the context of CSE
Factors Influencing Agency Costs in the Publicly Listed IT Firms: Evidence from Bangladesh
Get PDFThe primary goal of this research is to identify the factors that influence agency costs in publicly listed IT firms in Bangladesh. The research is based on secondary data obtained from nine IT firms listed on the Dhaka Stock Exchange (DSE) between 2018 and 2021, providing thirty-five firm-year observations. The effects of eight independent factors: board size, firm size, female directors, independent directors, managerial ownership, foreign ownership, institutional ownership, and leverage are examined in this study. For measuring the agency costs, the Asset Utilization Ratio (AUR) and Expense Ratio (EXR) have been employed as proxies. An ordinary least square (OLS) regression model has been used to test the hypothesized model. The study findings indicate that managerial ownership and institutional ownership are inversely and significantly associated with agency costs. In contrast, the board size, independent directors, and foreign ownership have a direct and significant relationship with agency costs. However, the relationship between agency costs and leverage or firm size cannot be determined. Besides, no statistically significant association has been found between female directors and agency costs. Being the first of its kind, the research findings can assist policymakers figure out what causes agency costs in IT firms and then take the right steps to reduce them
Gen Z's digital uprising in Bangladesh: The role of social media in the fall of a political despot
No full textBangladesh has a rich history of student movements, prior to and following its independence, which have been extensively documented in historical narratives. However, the emergence of Gen Z's Anti-Discrimination Student Movement (ADSM) in July 2024 represents a unique and significant notion in the nation's socio-political landscape: what initially began as a protest led by university students against the quota system for government employment, rapidly transformed into a widespread mass movement challenging the then ruling party. In this context, social media, situated within a participatory media paradigm, functioned as an instrumental tool for mass mobilization, engagement and collective action. Framing within Castells's theory of Networked Society and the concept of Platform Affordances by Papacharissi, this study conducted a discursive study focusing on the intricate dynamics of social media in facilitating and enhancing the movement's efficacy. The research explores the pivotal role of social media as utilized by Gen Z during this uprising, arguing that it served as a strategic mechanism for amplifying awareness, facilitating mobilization, arranging coordination, enhancing communication, and shaping public opinion throughout the movement
Drivers Influencing the Adoption Intention towards Mobile Fintech Services: A Study on the Emerging Bangladesh Market
No full textPeople’s acceptance of technological changes has escalated with time. However, the acceptance and adoption of fintech services hiked after the outbreak of the virulent coronavirus. With this breakout, the adoption of mobile fintech services (MFS) increased among general citizens and business sectors around the world, including in developed, emerging, and developing economies. This study aimed to identify the factors that impact the adoption intention of consumers to embrace and enhance the use of mobile fintech services in an emerging market, Bangladesh. A research model was developed to strengthen the objective of this paper. A total of 218 respondents responded to the questionnaire. The study utilized structural equation modeling to analyze the results in SmartPLS software. The results showed significant positive effects of social influence, trust, perceived benefit, and facilitating conditions on the adoption intention towards MFS. Mobile fintech service providers must keep their users’ needs and literacy rates in mind when designing the user interface (UI). Moreover, they should also cater more efficient services to the users and work based on the feedback received. The customers’ satisfaction will ultimately lead to customers conducting more digital transactions and will contribute to the escalation of fintech transactions, resulting in more financial inclusion
The Influence of Mall Management Dimensions on Perceived Experience and Patronage Intentions in an Emerging Economy
No full textA significant breakthrough in organised retail in an emerging economy such as Bangladesh, coupled with growing competition among mall managers, necessitates determination of the factors that contribute to a satisfactory shopping experience and long-term patronage intentions. Therefore, this study aimed to explore the factors influencing the overall experience of mall shoppers, which, in turn, shapes their patronage behaviour. For this purpose, 284 respondents were surveyed using the convenience sampling technique. Structural equation modelling was employed to test the hypothesised model. Among the three independent factors analysed, entertainment and accessibility wielded significant influence on shoppers’ experience, while tenant mix exerted a statistically insignificant influence. Altogether, these three independent variables, along with shoppers’ experience, accounted for 67% of the total variance in patronage. It was plausible to conclude that managing entertainment and accessibility can result in a more pleasant shopping experience. Being the first of its kind, this study investigated the combined impact of accessibility, tenant mix, and entertainment on the overall shopping experience that shapes patronage behaviour. This study’s findings can help comprehend the dynamics of customer management in the retail market of an emerging economy
