Nexus Between Sectoral Shift and Stock Return

Abstract

The objective of this study is to examine the impact of sectoral shift on the stock return of Bangladesh. This study employs auto-regressive distributive lag (ARDL) approach using the weekly data of various sectoral indices of Bangladesh over the period from May 1999 to September 2016. The findings tend to indicate that there has possible sectoral portfolio diversification in the market and ‘general product industry' is the most exogenous and profitable sector from the rest. This study is one of the first attempts of the sectoral analysis and its impact on the stock return with the reference to Bangladesh. Furthermore, this study can be a benchmark for the policymakers of emerging economies to find the impact of economic transformation in the stock returns of the equity markets.

Do Determinants Influence the Capital Structure Decision in Bangladesh? A Panel Data Analysis

“…The study excluded the service sector, banks, leasing companies, insurance companies, finance companies, mutual fund, real estate services, and travel and leisure, as their regulatory rules differ from those of the manufacturing sector, such as the minimum capital requirements. Hosen et al (2021) and Diamond and Rajan (2000) highlighted that "bank assets and functions are not the same as those of industrial firms." Similarly, our analysis excluded firms that stopped trading on DSE at some point during the study period and therefore had missing data.…”

Leverage Structure Dynamics and Firm Value

“…Prior to this period, the data were inconsistent or missing. The financial sector such as banks, insurance firms, and leasing organizations was left out of the research, since their assets, activities, and regulatory requirements differ greatly from those of the industrial sector (Diamond & Rajan, 2000a;Hosen, Imran & Chowdhury, 2021). Also, this analysis excludes manufacturing enterprises that were no longer in operation before 2003 and had only limited data.…”