Movement of PE Ratio and its Impact on Price Fluctuations: A Case Study of Dhaka Stock Exchange in Bangladesh

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Md Ashraf Ali
Md Ashraf Ali BBA (Major in Finance and Banking), MBA (Major in Finance and Banking)
1 The Millennium University

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This study describes the movement of PE ratio mentioned in corporate annual reports and impact on market price fluctuations in stock market. Specifically, this report discovers the affiliation between PE ratio and market price fluctuation in stock market in an emerging market like Dhaka stock Exchange, Bangladesh. For this purposes, it has analyzed and utilized a disclosure index about PE to measure the extent of relation with market fluctuation made by companies in corporate annual reports. This study reports that a very few company’s share price in DSE are making efforts to run with PE ratio which are mostly quantitative in nature. Whether the price earnings ratio is a good criterion on which to base investment decisions is also examined in this report.

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No external funding was declared for this work.

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The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Md Ashraf Ali. 2017. \u201cMovement of PE Ratio and its Impact on Price Fluctuations: A Case Study of Dhaka Stock Exchange in Bangladesh\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 17 (GJMBR Volume 17 Issue C1): .

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GJMBR Volume 17 Issue C1
Pg. 53- 60
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-C Classification: JEL Code: R53
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v1.2

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April 15, 2017

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English

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This study describes the movement of PE ratio mentioned in corporate annual reports and impact on market price fluctuations in stock market. Specifically, this report discovers the affiliation between PE ratio and market price fluctuation in stock market in an emerging market like Dhaka stock Exchange, Bangladesh. For this purposes, it has analyzed and utilized a disclosure index about PE to measure the extent of relation with market fluctuation made by companies in corporate annual reports. This study reports that a very few company’s share price in DSE are making efforts to run with PE ratio which are mostly quantitative in nature. Whether the price earnings ratio is a good criterion on which to base investment decisions is also examined in this report.

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Movement of PE Ratio and its Impact on Price Fluctuations: A Case Study of Dhaka Stock Exchange in Bangladesh

Md Ashraf Ali
Md Ashraf Ali The Millennium University

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