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American Journal of  Applied 
Statistics and Economics (AJASE)

Determinants of  Share Price of  Dhaka Stock Exchange
Jumman Sani1*, Md. Mostafa Kamal1, Tapan Kumar Biswas1, Tanjina Shahid1, Farah Tiyaba Tabassum1, Fouzia Hossain1

Volume 4 Issue 1, Year 2025
ISSN: 2992-927X (Online)

DOI: https://doi.org/10.54536/ajase.v4i1.3715
https://journals.e-palli.com/home/index.php/ajase

Article Information ABSTRACT

Received: August 25, 2024

Accepted: October 01, 2024

Published: February 08, 2025

This study investigates at the main factors influencing share prices on the Dhaka Stock Ex-
change (DSE), one of  the two main stock exchanges in Bangladesh. Stock markets provide 
as venues for businesses to generate cash through the issuance of  securities, which investors’ 
then trade. Primary measures of  investor sentiment and stock prices are extremely vola-
tile and impacted by a number of  qualitative (goodwill, industry circumstances, and market 
hype) and quantitative (earnings per share, ROA, and net asset value) variables. The present 
research inspects 206 firms that are listed on the DSE and investigates the influence of  
distinct quantitative elements on share prices, including liquidity, EPS, ROA, NAV, business 
size, and cash dividend rate (CDR). The results indicate that these variables explain 56% of  
the volatility in share price. Notably, share prices are negatively impacted by ROA and liquid-
ity, while CDR has the most favorable impact. Additionally, the analysis shows that there is 
considerable multi-co linearity among the variables, indicating that removing variables with 
higher p-values enhances the accuracy of  the model. The outcomes of  the research provide 
investors with insightful information that helps them make better decisions by demonstrat-
ing how important financial parameters impact share prices. Furthermore, the results lay 
the groundwork for future studies that examine other variables affecting DSE share price 
swings. The study emphasizes the difficulty of  anticipating share prices because of  both 
erratic market dynamics and controlled financial considerations.

Keywords

CDR, Dhaka Stock Exchange and 
Bangladesh, EPS, NAV, ROA, 
Share Price

1 Faculty of  Business Administration, University of  Development Alternative (UODA), Dhaka, Bangladesh
* Corresponding author’s e-mail: jumman.sani@gmail.com

INTRODUCTION
The ownership certificate of  any company is termed as 
stock. Stock exchange is a marketplace where financial 
securities are issued by the companies for buying and 
selling. Both shares and bonds are included in securities 
that are issued by the companies to gain desired level of  
capital from the market. And it also allows the investors 
to choose for the best alternatives to invest to get 
maximum benefit by taking the best calculative decision. 
As securities can be easily bought and sold it provides 
higher liquidity and also gives confidence to the investors 
to trade. Stock exchange provides a overall scenario of  
the industries by the price index. Higher price indicates 
more growing and lower price indicates less growing or 
drowning. Stock exchange helps the companies to raise 
their capital by attracting more investment. Higher price 
of  stock can ensure more capital reserves for companies. 
Stock exchange plays a major role to create entrepreneur. 
DSE stands as Dhaka Stock Exchange which is one of  the 
two stock exchanges of  Bangladesh. It lists companies, 
provides the screen based automated trading for listed 
securities; it settles the transactions, publishes monthly 
reviews, monitors the activities of  listed companies and 
protects funds by setting required rules and regulations. 
The stock price is the only indicator that represents 
the present condition of  the investor’s investment. It is 
very sensitive in nature as there are many factors that 
influence its price. There are some qualitative factors like 
the goodwill of  the company, analyst’s reports, industries 
condition, hype etc and there are many quantitative 
factors like Earnings per share (EPS), Cash Dividend 

(CD), Return on Assets (ROA), Net Asset Value (NAV), 
Inflation Rate, Bank Rate, Size of  the company etc. 
In this paper Liquidity, Earnings per share (EPS), Return 
on Assets (ROA), Net asset value per share (NAV), 
Size of  the company, Cash Dividend Rate (CDR) are 
considered as the determinants of  the price of  the share 
of  a company. The impact of  each factor on share price 
is also discussed with results.

Rationale of  the study
The share market is the most unpredictable market 
as the nature of  the price of  the share is so sensitive 
and changes frequently due to various factors. Studies 
suggest that both qualitative and quantitative factors are 
responsible for the change in share price. In this study, 
some independent variables like return on assets, earnings 
per share, size of  the company, net asset value of  the 
company per share and cash dividend rate are considered 
and selected and their impact on current share price is 
determined. These results will be helpful for the investor 
as they will have an idea regarding the impact of  the 
selected variables on share price and invest more wisely 
in future considering the results. Again this study can 
help the researcher to continue the research regarding the 
determinants of  share price in future with more variables.

Objectives of  the study 
The following objectives are to be fulfilled by this study: 

1. To find out the impact of  independent variables like 
ROA, NAV, EPS, size of  the company and rate of  cash 
dividend paid on share price.



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2. To find out the impact of  the independent variables 
on share price individually.

LITERATURE REVIEW
Several studies have already been conducted regarding 
the determinants of  share price in stock market. Some 
studies showed the effect of  internal factors on share 
price and some stated about the effect of  external factors 
on share price.
The stock market has become an essential market playing 
a vital role in economic prosperity that fosters capital 
formation and sustains economic growth. Stock markets 
are more than a place to trade securities. They operate as 
a facilitator between savers and users of  capital by means 
of  pooling of  funds, sharing risks and transferring fund 
(Mondal & Imran, 2010). The expectation of  future real 
dividend growth is a primary determinant of  stock price 
movements (Balk & Wohan, 2006). In all share index is 
more responsive to change in exchange rate, inflation 
rate, money supply and real output (Maku & Atanda, 
2007). Both quantitative and qualitative factors influence 
share price. Quantitative factors are dividend, market 
capital, price-earnings ratio, EPS, net income, return on 
investment, rational earnings, merger, stick split, margin 
loan, demand and supply of  stock, inflation, interest 
rate, exchange rate etc. Qualitative factors are company 
goodwill, market segments, company announcement, 
annual general meeting, analyst reports, hype, international 
situation, internal political situation, government policies 
etc (Hasan & Mondal, 2008). Previous behavior of  
stock prices, company sizes, previous earnings per 
share are the most important factors of  current share 
price. Additionally, macroeconomic indicators like 
GDP growth, rate of  interest and financial depth have 
significant relationship with stock price (Nisa & Nishat, 
2011). The stock price movement is determined by the 
ratios like asset turnover ratio, debt ratio, current ratio, 
net profit margin, price-to-earnings ratio and book value 
(Ugun Ergun, 2012). The relationship between dividends 
and stock prices after controlling the variables like EPS, 
return on equity. Retention ratio have positive relation with 
stock prices while dividend yield and profit after tax have 
negative relation with share price (Masum, 2014). Both 
macro and micro variables can reliably price the stocks. 
Specifically asset quality, management quality, earnings, 
size, money supply and interest rate are significantly 
related to stock price (Rjoub et al., 2017). Remittance and 
money supply positively affect the stock market where as 
interest rate and exchange rate negatively affects the stock 
market performance (Rakhal, 2018). The major factors 
influencing stock market development in line with FDI, 
economic growth, infrastructural development, savings, 
inflation, trade openness, exchange rates and stock 
market liquidity (Tsaurai, 2018). The positive relationship 
lies among stick price volatility and dividend payout ratio, 
assets growth and size. And a negative relation among 
stick price and earnings volatility leverage (Arshad et 
al., 2019). The impact of  some selected variables like 

dividend, price, earnings per share, dividend payout ratio 
and size on the movement of  share price. (Chowdhury et 
al., 2019).
In this study, factors like liquidity, return on assets, net 
asset value, earnings per share, size of  the business and 
cash dividend rate are selected as independent variables 
and their impact on changing the share price is examined 
and discussed.

Research Gap
Though several researches had been conducted regarding 
the title determinants of  stock price, most research have 
been done on small sample group but this study covers 
the information of  206 companies which is larger in 
scale. Again, all other research work is done before 2019 
whereas this paper includes the information of  2023 
which updated compared with the previous studies. 
Variables like return on assets (ROA) and net asset value 
per share (NAV) are considered  independent variables 
that determine the share price in this paper which were 
ignored before.

Data Collection & Descriptive Statistics
Data Collection
This study is a quantitative study and data used in this 
study is secondary in nature. Total 206 companies are 
examined to collect the information that is required 
to conduct this study. Annual reports of  those 206 
companies are already published and available online and 
offline. Data are mainly collected from the website of  
Dhaka Stock Exchange and from the annual reports of  
the sample organizations. 

Descriptive Statistics
Dependent Variable
Share Price (SP): In this study share price is taken as 
dependent variable. Closing market price of  per common 
share is taken here as share price. It is the last trading 
price of  the share in the Dhaka Stock Exchange.

Independent Variables
Liquidity (L): Liquidity is the ability of  an organization 
to meet up it’s current liabilities. Normally, it is expressed 
by the current ratio of  each company. Liquidity indicates 
the amount of  current assets available to pay the current 
liabilities. 

Return on Assets (ROA)
When return is compared with the asset ROA is obtained 
then. ROA indicates the return generated in terms of  
assets. It expresses the percentage of  how profitable a 
company’s assets are generating revenue. 
Formula of  ROA is,
ROA = Net income / Total assets.

Net Asset Value (NAV)
Net asset value expresses the realizable asset value after 
the deduction of  it’s liabilities. It represents the net value 



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of  an entity. It is calculated as the total value of  the assets 
minus the total value of  the liabilities. 
Formula of  NAV is,
NAV = Net asset value / Number of  shares outstanding

Earnings per share (EPS)
EPS is the most common and popular indicator of  
company’s performance. When the earning is expressed 
in proportion to per share, it is called EPS or earnings 
per share. Earning per share indicates how much money 
is made for each share. It is an indicator of  company’s 
profitability.
Formula of  EPS : 

Table 1: High tendency of  changing price
Share Price Liquidity ROA NAV Per share EPS Size Dividend Rate

Mean 142.8140777 2.18315534 0.055579369 44.6661165 3.302538835 9.157262136 0.228473301
Standard 
Error

19.84179665 0.208816997 0.028457642 7.360174063 0.86943117 0.149050396 0.049104485

Median 51.65 1.44 0.0235 28.855 1.375 9.515 0.1
Mode 9.9 0 0 18.56 0.22 0 0.1
Standard 
Deviation

284.7833567 2.997087732 105.638371 12.47868483 2.139275637 0.704781942

Sample 
Variance

81101.56024 8.982534873 0.166826507 11159.46542 155.7175751 4.576500253 0.496717586

Kurtosis 27.98868064 37.27142079 113.9122547 85.3076146 34.29382307 12.40120118 77.3261226
Skewness 4.780958708 5.337846297 8.672089319 -6.910987275 3.471037174 -3.466258855 7.950804115
Range 2416.3 27.77 7.02 1511.63 165.85 11.68 8
Minimum 5.2 0 -1.96 -1167.57 -53.03 0 0
Maximum 2421.5 27.77 5.06 344.06 112.82 11.68 8
Sum 29419.7 449.73 11.44935 9201.22 680.323 1886.396 47.0655
Count 206 206 206 206 206 206 206

EPS = (Net income – Preferred dividend) / weighted 
average outstanding shares 
Size (S): Size interprets the total proportion of  market 
share is captured by any company. It is expressed by 
the logarithm of  net asset value. It indicates how much 
market share is captured by a company.

Cash Dividend Rate (CDR)
The cash dividend rate is the rate by which the profit 
portion is distributed to share holder in form of  cash. 
Cash dividend rate indicates the amount of  cash return to 
it’s stockholder on an annual basis. It is the dividend rate 
that is declared and paid by the companies. 

It is obtained from the table that the mean value of  share 
price is 142.814 and standard deviation is 284.78 which 
shows that there is high tendency of  changing price. The 
minimum value of  share price is 5.2 and the maximum 
value is 2421.5. It’s mode is 9.9.
The mean value of  liquidity denotes as 2.18 and it’s 
standard deviation is 3.00. The range of  its value is 0 to 
27.77. The mode of  liquidity is 0.
The mean value and standard deviation of  ROA are 0.056 
and 0.41 respectively. The minimum value of  ROA is 
-1.96 and the maximum value is 5.06. The mode value of  
return on assets or ROA is 0.
NAV’s mean value is 44.67 and standard deviation is 
105.63. The range of  NAV is -1167.57 to 344.06. The 
mode value of  net asset value per share or NAV is 18.56
EPS has a mean value of  3.30 and standard deviation 
of  12.48. The minimum value of  EPS is -53.03 and the 
maximum value is 112.82. From the table it is shown that 
the mode of  earnings per share is 0.22.
The mean value of  the size of  the companies is 9.16 and 
standard deviation is 2.14 while the range of  the size of  
the companies expressed as 0 to 11.68. The mode of  size 
of  the companies is 0.
Cash Dividend Rate has a mean value of  0.23 and 

standard deviation of  0.71 while it’s minimum value is 0 
and maximum value is 8. Mode of  the cash dividend rate 
of  the companies is exactly 0.01.

MATERIALS AND METHODS
In this study descriptive statistics, correlation, economic 
model, regression are designed to show the relationship 
among the independent variables and their impact on the 
dependent variable which is share price. 
Some selected independent variables like liquidity, return 
on assets, net asset value, earnings per share, size of  the 
business and cash dividend rate are considered as the 
determinants of  share price. To show the relationship 
among the variables and their impacts on share price 
descriptive statistics and correlation matrix are used. To 
understand the effect of  each variable on share price an 
econometrics model is used in this study and with the 
help of  data analysis tool of  Microsoft Excel coefficients 
are determined. 

Econometrics Model
The following model is used to find out the influence of  
Liquidity, Return on Assets, Net Asset Value, Size of  the 
company and Cash Dividend Rate on Share Price of  the 



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particular company.

α1 =   Constant. It indicates the value of  the share price 
per share in absence of  liquidity, return on assets, net 
asset value, and earnings per share, size of  the company 
and cash dividend rate.
β1 = The partial change in share price due to the one 
percentage change in liquidity while other things remain 
constant. 
β2 = The partial change in share price due to the one 
percentage change in Return on Assets (ROA) while 
other things remain constant.
β3 = The partial change in share price due to the one 

percentage change in Net Asset Value (NAV) while other 
things remain constant.
β4 = The partial change in share price due to the one 
percentage change in Earnings per share (EPS) while 
other things remain constant.
β5 = The partial change in share price due to the one 
percentage change in Size (S) while other things remain 
constant.
β6 = The partial change in share price due to the one 
percentage change in Cash Dividend Rate (CDR) while 
other things remain constant.
μ1  = Error

Table 2: Correlation Matrix
Share Price Liquidity ROA NAV Per share EPS Size Dividend 

Rate
Share 
Price

1

Liquidity -0.077602565 1
ROA 0.04193175 -0.038355729 1
NAV Per 
share

0.313655963 -0.017135035 0.057411343 1

EPS 0.616150332 -0.024942244 0.129164084 0.493833012 1
Size 0.060655544 0.096163557 0.066466266 0.350240737 0.196324749 1
Dividend 
Rate

0.733105264 -0.059979308 0.083753395 0.216638088 0.800290692 0.133439 1

This table shows the correlation matrix among the 
variables. According to that table there is both positive 
and negative correlation among the variables among 
them some are significant and some are not significant. 
The share price has positive correlation with ROA, NAV 
per share, EPS, size and dividend rate. Among them 
dividend rate has highest correlation with share price as 
of  0.73 which is significant as well. EPS is another factor 
which has significant correlation with share price exactly 
of  0.61. On the other hand with liquidity share price has 
negative correlation which is of  -0.08.
Liquidity has only positive correlation with size of  the 
organization which is 0.096. It has negative correlation 
with ROA, NAV and EPS among them the height 
correlation is with size of  the company of  0.10.
ROA has positive correlation with NAV, EPS and size and 
dividend rate. Highest correlation is with EPS of  0.13.

NAV has positive correlation with EPS, size and cash 
dividend rate. Among them the highest one is with EPS 
of  0.49.
EPS has positive correlation with size and dividend rate. 
It has highest correlation with dividend rate of  0.80 
which is also significant in nature.
Size has positive correlation with dividend rate and it is 
of  0.13.

RESULTS AND DISCUSSION
Empirical Results
With the help of  data analysis tool of  Microsoft Excel 
from the appendix 4 the following model can be extracted 
that we designed earlier:

Summary Output

Table 3: Regression Statistics
Multiple R 0.758177466
R Square 0.57483307
Adjusted R Square 0.562013966
Standard Error 188.4710872
Observations 206

Table 4: Anova
df SS MS F Significance F

Regression 6 9557071.059 1592845.177 44.84190902 1.88254E-34
Residual 199 7068748.79 35521.3507
Total 205 16625819.85



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Table 5: ROA
R Coefficients Standard Error t Stat P-value Lower 95% Upper 95%
Intercept 179.050 59.914 2.988 0.003 60.902 297.199
Liquidity -1.971 4.439 -0.444 0.658 -10.725 6.783
ROA -12.524 32.596 -0.384 0.701 -76.803 51.755
NAV Per share 0.615 0.160 3.831 0.000 0.298 0.931
EPS -2.093 2.118 -0.988 0.324 -6.270 2.084
Size -13.425 6.641 -2.021 0.045 -26.522 -0.328
Dividend Rate 311.472 33.376 9.332 0.000 245.657 377.288

SP = 179.05 – 1.97 Liquidity – 12.52 ROA + 0.62 NAV – 
2.09 EPS – 13.43 Size + 311.47 Dividend Rate
Here 170.05 denote the value of  constant. It denotes that 
the share price will be 179.05 if  liquidity, ROA, NAV, 
EPS, size and cash dividend rate are absent in the market.
-1.97(Liquidity) indicates that if  only liquidity stays in 
the market and other thing remain constant for 1 unit 
change in liquidity will result in 1.97 unit of  share price 
in the opposite direction. That means if  the liquidity will 
increase the share price will be decreased and if  liquidity 
is decreased share price will be increased.
-12.52(ROA) explains that the ROA presence in the 
market while other factors will remain constant will affect 
the share price. For each unit of  ROA the share price will 
be moved 12.52 in the opposite way. That means if  ROA 
increases for 1 unit the share price will be decreased for 
12.52 units and vice versa.
0.62(NAV) discloses that if  other factors remain constant 
in the market except NAV this will affect the share price. 
To be exact 1 unit of  NAV will influence the share price 
in the same direction for 0.62 units. If  NAV increases 
for 1 unit the share price will be increased by 0.62 units. 
Again if  NAV decreases for 1 unit, the share price will be 
decreased by 0.62 unit.
-2.09 (EPS) demonstrates that if  only EPS stays in the 
market and other factors remain constant will have 
an effect on changing share price. Share price will be 
effected by 2.09 units for the per unit change of  EPS in 

the opposite direction. If  EPS is increased by 1 unit this 
will result in 2.09 units decrease of  share price. Again if  
EPS is decreased for 1 unit will result in increase of  share 
price by 2.09 units.
-13.43(Size) interprets that the size of  the organization 
negatively effects share price when other factors remain 
constant. For each unit of  size of  the organization 
increase will result in 13.43 units’ decrease of  share price. 
If  the size of  the organization will be decreased by 1 unit, 
that will ensure the increase in share price by 13.43 units.
311.47(CDR) illustrates that the cash dividend rate is a 
significant factor to influence the share price when other 
factors constant. I unit of  increase in CDR will assure 
311.47 units of  increase in the share price. Similarly 1 unit 
decrease in CDR will cost 311.47 units decrease of  share 
price.
The value of  r square is 0.57.  Again, the value of  
adjusted r square is 0.56. This indicates that the model 
explains 56% proportion of  the share price. To be more 
exact it can be said that 56% of  the share price can be 
demonstrated by the variables used in the model and the 
rest 44% can be influenced by the factors that are not 
considered in this model.
ANOVA table shows that the value of  significance F = 
1.88254E-34 ~ 0.000… that also provides the assurance 
of  the model’s significance.

Summary Output

Table 6: Test of  Multi-co-linearity
Regression Statistics
Multiple R 0.758177466

R Square 0.57483307

Adjusted R 
Square

0.562013966

Standard 
Error

188.4710872

Observations 206

ANOVA
df SS MS F Significance 

F

Regression 6 9557071.059 1592845.177 44.84190902 1.88254E-34

Residual 199 7068748.79 35521.3507

Total 205 16625819.85

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% VIF r2



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Intercept 179.0502836 59.91444623 2.988432587 0.003157252 60.90159921 297.1989679

Liquidity -1.970817384 4.439223972 -0.443955384 0.657557203 -10.72477415 6.78313938 1.021591333 0.021135

ROA -12.52400962 32.59632841 -0.384215347 0.701229082 -76.80255274 51.75453351 1.022979181 0.022463

NAV Per 
share

0.614512374 0.160418936 3.83067229 0.000171245 0.298173203 0.930851545 1.657449589 0.3966634

EPS -2.092886387 2.118022755 -0.988132154 0.32428785 -6.26953522 2.083762445 4.031461526 0.751951

Size -13.42505098 6.641447657 -2.02140432 0.044577334 -26.52169715 -0.328404814 1.164993348 0.141626

Dividend 
Rate

311.4724529 33.37566126 9.332323051 2.08425E-17 245.6570993 377.2878066 3.193255844 0.68684

Variance inflation factor = 1/ ( 1- R²)

Table 7: Test of  Autocorrelation
Regression Statistics
Multiple R 0.756134457

R Square 0.571739318

Adjusted R 
Square

0.56537901

Standard Error 187.74568

Observations 206

ANOVA

df SS MS F Significance F

Regression 3 9505634.895 3168544.965 89.89177767 5.48197E-37

Residual 202 7120184.955 35248.44037

Total 205 16625819.85

Coefficients Standard Error t Stat P-value Lower 95% Upper 95%

Intercept 178.7749272 59.57335853 3.000920741 0.003030763 61.30952613 296.2403283

NAV Per share 0.530930594 0.134799543 3.93866762 0.000112791 0.265135904 0.796725284

Size -13.61506297 6.557022528 -2.076409363 0.039121579 -26.5440517 -0.686074239

Dividend Rate 284.5025787 19.09583116 14.89867481 2.32765E-34 246.8498507 322.1553068

Here the variables having higher p value are excluded 
from the model and the regression shows better results 
in terms of  p value. After deduction of  the variables the 
new model stands like this: 
SP = 178.77 – 1.97 Liquidity + 0.53 NAV – 13.61 Size + 
284.50 Dividend Rate.

Findings
1. The regression model’s R² score is 0.57, suggesting 

that 56% of  the variance in share price is explained by 
these factors.

2. The dependent variable, share price, has a mean of  
142.81 and a standard deviation of  284.79.

It is extremely volatile in nature, ranging from 5.2 to 
2421.5.

3. The analysis discovered that the cash dividend rate, 
size, profits per share, return on assets, liquidity, and 
net asset value were correlated negatively, and that the 
independent factors had negligible effects on share price.

4. Share price is negatively impacted by liquidity and 
ROA; for every 1% rise in both factors, the price drops 
by 1.97 and 12.52 units, respectively.

5. NAV has a positive correlation with share price; for 
every 1% rise in NAV, the price of  the shares increases 

by 0.62 units.
6. Size and EPS have a negative impact on share price: 

size lowers share price by 13.43 units and EPS by 2.09 
units for every 1% rise in EPS.

7. One important component is the Cash Dividend 
Rate (CDR), which yields a 311.47 unit rise in share price 
for every 1% increase.

8. Moderate multi-co linearity in the model is indicated 
by Variance Inflation Factor (VIF) values less than 5.

9. Enhanced results are obtained using a modified 
model that eliminates variables with higher p-values.

10. Share price is influenced by size, dividend rate, 
and net asset value, with dividend rate having the most 
positive impact, while liquidity, ROA, and EPS have 
minimal impact.

Recommendations
Following are some suggestions derived from the results 
to enhance stakeholders’ decision-making and share price 
predictability:

1. Companies should emphasize maintaining or 
growing dividend distributions since they have a large 
positive impact on investor confidence and share price 

Here the value of  VIF is less than 5. It indicates that there 
is moderate Multi-co-linearity in the model.

Summary Output



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growth, especially when it comes to the cash dividend 
rate (CDR), which has the biggest positive impact on 
share price.

2. By better managing their assets and cutting down 
on obligations, companies should concentrate on raising 
their net asset value.

3. Since increased liquidity seems to have a negative 
impact on share price, companies should carefully 
manage liquidity.

4. Even while ROA is usually viewed as a metric of  
revenue, companies should look into why increased 
ROA causes a drop in share price and modify their plans 
appropriately, maybe by making better use of  their assets.

5. Companies should think about restructuring 
techniques to strike a balance between expansion and 
operational efficiency, as a larger company’s size has a 
negative influence on share price.

6. In an effort to match EPS growth with investor 
expectations, management should look into the causes of  
the correlation between rising EPS and falling share price.

7. To stabilize share price, investors and corporations 
must consider severe volatility ranging from 5.2 to 
2421.5, using risk management measures like shareholder 
communication, hedging, and diversification.

8. Companies should communicate their financial 
performance in a straightforward manner, emphasizing 
dividends, net asset value (NAV), and ROA and EPS 
strategies that are in line with investor goals.
By concentrating on these essential elements, companies 
may develop tactics that enhance the predictability 
of  share prices while also better matching investor 
expectations and market realities.

CONCLUSION
Share market is the most unpredictable and sensitive 
market in Bangladesh, which is controlled by so many 
micro and macroeconomic factors. Among them, some 
are controllable and some are not. Factors like bank 
rate, exchange rate, inflation rate, government policies, 
international business situation, market expectations, 
hype, goodwill of  a company, analyst’s report, corporate 
social responsibility, corporate governance, companies 
internal policies, profitability, nature of  business, GDP 
growth, economic growth, demand and supply situation 
etc can affect the share price in any moment. As there 
are so many variables, it is very difficult to predict the 
share price by previous actions, and also, it is not possible 
to predict it’s future value accurately by depending on 
mathematical calculations as there are some factors which 
are qualitative but has significant influence on the share 
price. The overall report expresses that the independent 
variables like liquidity, return on assets, net asset value 
per share, earnings per share, size of  the organization 
and cash dividend rate can explain 56% of  the share 
price. There is moderate Multi-col-linearity among the 
variables as the variable influencing factor is less than 
5% among the variables. Autocorrelation suggested that 
if  liquidity, ROA and EPS is excluded the rest variables 

gives significant p value. 
Though it is difficult, this study attempts to predict the 
determinants of  share price by selecting some independent 
quantitative variables and to some extent this study can 
influence the investors to make better decisions. As there 
are so many factors to be more examined and due to the 
changing nature of  the share price, the determinants of  
share price of  DSC is a topic to be more discussed and 
more examined. So, further studies can be conducted to 
get better results in the upcoming future.

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