Non-bank financial institutions (NBFIs) are recognized as the fundamental of a financial market as they complement the banking institutions. Since 1981, NBFIs have been playing a vital role in the economic growth of Bangladesh. Unfortunately, in the recent years most of the NBFIs have been found financially distressed. However, few NBFIs that were included in our sample claimed themselves as potential companies with sound financial performance though it was highly criticized. Therefore, the motivation for conducting this study is to examine the financial soundness of selected NBFIs using Altman’s Z score (1995). This study involved 20 NBFIs out of 23 Dhaka Stock Exchange (DSE) listed institutions, which were selected based on information availability by considering A, B and Z categories from 2014 to 2018 period. The secondary data were collected from the annual reports of the selected companies over the period. The findings are as follows: 95% of the 20 NBFIs were in distress zone during the study period and only 5% NBFIs were in safe zone during 2017-2018 period. Therefore, the analysis predicted that within the upcoming years a few of the NBFIs will be approaching bankruptcy. Finally, it is suggested that the government, respective regulatory authority, and policy makers to pay an immediate attention on mitigating the factors affecting the financial distress.
Nowadays, the forecast of the financial crisis is a significant concern for all companies and stakeholders. As a fast-growing economy, the insurance industry in Bangladesh is also a significant concern. Nevertheless, the performance and contribution of Bangladeshi insurance companies are highly criticized by scholars. Therefore, with the motivation to provide a comprehensive overview of the financial health of the general insurance industry in Bangladesh, we have done secondary research on a total of 18 general insurance companies in Bangladesh from 2014-2018. Throughout the study, we tested the widely accepted Altman Z Score model to predict a major financial concern called bankruptcy. We found that 95% of the selected companies secured the safe but not in the highly satisfactory calculated value of the Altman Z score model. Therefore, as expected, this finding highlights the success of the growing nature insurance business in Bangladesh. Also, as the Z score model has high predictive power in the case of predicting financial distress, our findings could be valuable path for stakeholders in making the right decision for investment.
This paper aims to investigate the Mutual Fund industry's performance in Bangladesh, considering the close-end mutual funds of 32 listed funds in the Dhaka Stock Exchange, Bangladesh. The study employed unbalanced panel data analysis throughout 2014 to 2019. By using an error-corrected panel data regression model with an attempt to investigate the performance of mutual funds considering several fundamental factors such as Return on Assets, Earning per unit, Fund Size, Fund Age, Dividend payout ratio, Net Asset Growth and Management Fees, etc. After correcting autoregressive disturbance, the RE GLS regression model is selected to describe this panel data analysis. It demonstrates a significant positive connection between earning per unit and return on assets. The study identifies a significant negative relationship with fund age and asset growth in response to the change of return on assets. It also concludes there is no significant predictive power among the fund size, dividend payout ratio, management fees with return on assets while defining mutual fund performance. The study fills the gap by investigating the significant relationship of these following variables with the fundamental performance indicator. Findings of the empirical analysis suggest that the investors should pay close attention to earnings, fund age and assets growth while selecting mutual funds for investment. It is noticed that the company generally tends to pay lower dividend when the performance and profitability starts decrease. Policy makers should also pay attention to defining the downward characteristics of asset growth and dividend payout compared to the basic profitability ratios.
The banking industry is one of the major sectors contributing to the Bangladesh economy; it needs a considerable number of qualified and potential employees to attain the organization's goal. This study's main objective is to evaluate the effectiveness of the recruitment and selection process in the banking industry of Bangladesh based on the perception and experience of recently recruited employees in different private and public limited banks. Primary data were used to conduct a quantitative analysis for the following research problem. Therefore, 84 samples were retrieved out of 100 samples. Diagnostic test concludes that primary data are not normally distributed. In order to analyze the overall perception, Kruskal Wallis Test was applied as a measure of non-parametric test statistics. The findings disclose that median group identified significant relationship among E-recruitment strategies, Use of assessment centres, and processing time of recruitment with the overall perception of employees on recruitment and selection process. Finally, the study suggests that shortening the total procedural time, using innovative technology, and reviewing the policy regarding the recruitment and selection process can enable sound recruitment and selection practice in Bangladesh.
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