Relationships between Inflation Rate and Market Value per Share of Commercial Banks: Evidence from Bangladesh

Authors

  • Abu Nomaan Mohammad Minhajul Haque Chowdhury Hajee Mohammad Danesh Science and Technology University

DOI:

https://doi.org/10.18034/gdeb.v6i2.121

Keywords:

Commercial banks, inflation, market value per share, coefficient of determination, coefficient of correlation

Abstract

The market value per share of financial institutions depends on a range of internal and macroeconomic variables. Inflation rate of a country is one of the macroeconomic variables that substantially influence the market price of share of the financial organizations. This study aimed at determining the relationship between inflation and market value per share of commercial banks in Bangladesh. Researchers used market value per share of 10 commercial banks and inflation rate for the period 2011 to 2015 as secondary data. A number of statistical tools (average, percentage change, median, maximum, minimum, standard deviation, coefficient of correlation and coefficient of determination) were used to find out the results. It was found that inflation of a country had significant positive effect on the market value per share of the selected commercial banks.

JEL Classification Code: G 21

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Author Biography

  • Abu Nomaan Mohammad Minhajul Haque Chowdhury , Hajee Mohammad Danesh Science and Technology University

    Master of Business Administration (MBA), Department of Finance and Banking, Hajee Mohammad Danesh Science and Technology University, Dinajpur-5200, BANGLADESH

References

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Published

2017-12-31

Issue

Vol. 6 No. 2 (2017): July - December Issue

Section

Articles

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How to Cite

Chowdhury , A. N. M. M. H. . (2017). Relationships between Inflation Rate and Market Value per Share of Commercial Banks: Evidence from Bangladesh. Global Disclosure of Economics and Business, 6(2), 107-114. https://doi.org/10.18034/gdeb.v6i2.121
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