Measuring Firms Intrinsic Values in an Emerging Economy: Evidence from Bangladesh

Asian Economic and Financial Review

article

Leo Vashkor Dewri¹  Md. Rashidul Islam²  Fatema Tuz-Johra³  M Mizanur Rahman⁴ 

[1] Senior Lecturer, Department of Business Administration, East West University;Assistant Professor, Department of Business Administration, East West University;Lecturer, Department of Business Administration, East West University;Head

关键词: Intrinsic value;    Corporate governance;    Volume of capital;    Dividend policy.;   

DOI  :  10.18488/journal.aefr.2021.116.429.445

学科分类：社会科学、人文和艺术（综合）

来源: Asian Economic and Social Society

【 摘 要 】

This study considered three parameters to measure firms’ intrinsic values: corporate governance, paid-up capital size, and dividend payout policy. These were used as independent variables, and market interest rate was used as the control variable. To measure these parameters, daily trade data was observed from both the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) data repositories and covered a total of 1475 firm years’ disclosures from 2013 to 2017 to conclude the analysis. The study revealed that there is a significantly negative correlation with firms’ intrinsic values and corporate governance due to the majority of firms failing to adhere to corporate governance guidelines and therefore generate higher intrinsic values. Also, firms in emerging economies are characterized by a high level of family ownership and lack of transparency. Similarly, there is a significant negative relationship with firms’ intrinsic values and higher capital-based firms, and there is no significant relationship with the firms’ intrinsic values and dividend payout policies in the emerging economy.

【 授权许可】

CC BY