The goal of the corporate entities is to maximize the value of the shareholders investment in the firm.

. Managers pursue this goal through their investment, financing and dividend decision. Investment decision involve with the selection of positive net present value projects while financing decision involve with selection of a capital structure that would minimize the cost of capital of the firm (Hamid and Chowdhury, 2005). In addition, managers need to decide dividend decision on a regular basis that involves with whether to payout earnings to shareholders to reduce agency problem (Jensen and Meckling, 1976). However the question remains whether paying out of earnings would essentially create value for the shareholders or not. In this respect, we have found two schools of thought of dividend policy: (1) dividend irrelevance and (2) dividend relevance. Both of the thoughts have conflict with each other and none of them provides complete and satisfactory guidelines. However, both of the schools are trying to establish their thoughts, which led to dividend controversy. A great deal of theoretical and empirical research on dividend effects has been done over the last several decades. This paper is intended to identify the impact of dividend announcement information on the stock prices of 25 DSE listed Private Commercial Banks (PCBs) in Bangladesh in the year 2008.

In Bangladesh, most investors use a broker to buy and sell stocks. These brokers simply take an investor's order and execute it for them. These brokers legally cannot offer any advice to the investors in facing their decision about where to invest. It is conceivable that the dealings of all such brokers must also be scrutinised to ascertain whether they have been performing their duties legally. Especially those, who do not have any knowledge and information on technical and specialized matters, can easily be influenced by such brokers. This could lead the investors to take some wrong decisions. What needs to be considered before buying shares of a particular company? When an investor considers buying a company's share, he or she needs to assess what the real worth of the shares is, by determining how much money they will receive in future as dividends from those shares and what the worth of those shares would be when he or she, as an investor, would sell those. These are specific factors that an investor needs to analyse while selecting a company for purchasing its share.

3.1. Problem Statement

Stock prices change every day as a result of market forces. By this we mean that share prices change because of supply and demand. If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall. Understanding supply and demand is easy. What is difficult to comprehend is what makes people like a particular stock and dislike another stock. This comes down to figuring out what news is positive for a company and what news is negative. There are many answers to this problem and just about any investor you ask has their own ideas and strategies. So,

why do stock prices change? The best answer is that nobody really knows for sure. Some believe that it isn't possible to predict how stock prices will change, while others think that by drawing charts and looking at past price movements, we can determine when to buy and sell. The only thing we do know is that stocks are volatile and can change in price extremely rapidly. Concerning to this matter I wanted to study on why the share price changes. I chose some variables that can be responsible for the movement of share price. Which variable is more responsible that is to measure as well as IFIC Banks share price movements is also compared to all other banks listed in DSE.

3.2. Literature Review

Financial Statements are historical documents. They summarize what has happened during a particular period. Most users of financial statements are concerned with what will happen in the future. For example- stockholders are concerned with future earnings and dividends and creditors are concerned with the companys future ability to repay its debt. These users rely on financial statement analysis, which involves examining trends in key financial data, comparing financial data across companies, and analyzing financial ratios to assess the financial health and future prospects of the company. Earning per share:

Earning per share is computed by dividing net income available for common stock holders by the average number of common shares outstanding during the year. Net income available for common stockholders is net income minus dividend paid to the owners of the companys preferred stock. Net Income Preferred dividend Earning per Share = Average number of common share outstanding

So with earnings per share we are looking at the amount of money left over for shareholders - after taxes - and "normalizing" those profits by stating them on a per share basis. For example Company A and Company B might each have earnings of $1 million. But Company A has 1 million shares outstanding, while Company B has 10 million shares outstanding. So Company A's EPS is $1.00, while Company B's earnings are $0.10 per share.

40 Price Earning Ratio: The price to earnings ratio (denoted P/E) measures the relationship between the share prices to its earnings per share. It is considered one of the most important metric of a company because comparing two similar companies P/E shows us which a better value is. Sometimes, people will refer to this ratio as the price to earnings multiple, or simply the multiple of a company.

Market price per share Price-earning ratio = Earning per share

The price earning ratio is widely used by investors. A high price-earning ratio means that investors are willing to pay a premium for the companys stock presumably because the company is expected to have higher than average future earnings growth. Conversely, if investors believe a companys future earnings growth prospects are limited, the companys price earning ratio would be relatively low. If a company makes $5 and has a share price of $50, then the P/E is simply 10 (50

divided by 5). With this information, an investor can clearly see that the general public is currently willing to pay $10 for every $1 that the company makes. This also means that the lower this number, the better value the investment potentially is. Dividend Payout Ratio: Investors in a companys stock make money in two ways increase in the market value of stock and dividends. In general, earning should be retained in a company and not paid out in dividends as long as rate of return on funds invested inside the company exceeds the rate of return that stockholders could earn on alternative investments outside the company. 41 The dividend payout ratio gauges the portion of current earnings being paid out in dividends. This ratio is computed by dividing the dividends per share by the earning per share for common stock: Dividend per share Dividend payout ratio= Earning per share

These formulas derive the percentage of profit that a company returns to its shareholders as dividends. This information is useful in two ways; it indicates the extent to which profits justify the current payout ratio, dividend level, and dividend growth rate, and it also provides an estimate of the level of reinvestment the company is currently practicing. Most new companies have low dividend payout ratios due to the necessity for reinvestment of profits into the core business or debt reduction activity. As companies mature and gain financial stability, dividend payout ratios increase commensurately in most cases. Therefore, dividend payout ratios are generally a very rough indicator of financial health, since these ratios do not take into consideration the rate of reinvestment, debt reduction, or the maturity of the companys business interests and investments. In some cases, dividend payout ratios may exceed 100%; this is usually not a sustainable situation. Unusually high dividend payout ratios may result from a one-time hit to net income, ongoing tax advantages from high payouts, or expected near-term growth in income that has not yet materialized.

Retained Earnings:

In accounting, retained earnings refers to the portion of net income which is retained by the corporation rather than distributed to its owners as dividends. Similarly, if the corporation takes a loss, then that loss is retained and called variously retained losses, accumulated losses or accumulated deficit. Retained earnings and losses are cumulative from year to year with losses offsetting earnings.

42

Retained earnings are reported in the shareholders' equity section of the balance sheet. Companies with net accumulated losses may refer to negative shareholders' equity as a shareholders' deficit. A complete report of the retained earnings or retained losses is presented in the Statement of Retained Earnings or Statement of Retained Losses. Return on Total Asset: Return on total asset is a measure of operating performance. It is defined as follows: Net income + [Interest expense *(1- Tax Rate)] Return on total asset = Average total asset Interest expense is added back to net income to show what earnings would have been if the company had no debt. The interest expense is placed on an after tax basis by multiplying it by the factor (1- tax rate).The return on assets (ROA) percentage shows how profitable a company's assets are in generating revenue. Return on assets is an indicator of how profitable a company is before leverage, and is compared with companies in the same industry. Since the figure for total assets of the company depends on the carrying value of the assets, some caution is required for companies whose carrying value may not correspond to the actual market value. Return on common stock holders equity: The return on common stock holders equity is based on the book value of common stock holders equity. It is computed as follows:

Return on common stock holders equity = Net income preferred dividends Average common stockholders equity

43 Return on equity (ROE) measures the rate of return on the ownership interest (shareholders' equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE shows how well a company uses investment funds to generate earnings growth. ROEs between 15% and 20% are considered desirable. Correlation: The relationship is of a quantitative nature, the appropriate statistical tool for discovering and measuring the relationship and expressing it in a brief formula is known as correlation Croxton and Cowden. The problem of analyzing the relation between different series can be broken into three steps: Regression: After having established the fact that two variables are closely related, we may interest in estimating the value of one variable given the value of another. The statistical tool with the help of which we are in a position to estimate the unknown values of one variable to known values of another variable is called Regression. With the help of regression, we are in a position to find out the average probable change in one variable given a certain amount of change in another. Determining whether a relation exists, if it does, measuring it. Testing whether it is significant, and Establishing the cause- and effect relation (if any).

44

3.3. Data Collection and Analysis

All the data collected for the report are found from the annual report of the banks. I process the data by calculating the numbers taken from annual reports. It took many times to prepare the data. Than after calculating and preparing data I used SPSS 14, analytical software to find out the regression and correlation of the independent variables EPS, PER, DPR, ROA, ROE, ROI, Net profit after taxes, Retained Earnings and growth rate of the organization with the dependent variable market price of the share. The processed data and their analysis are given belowAB Bank Correlation
EPS PER DPR (%) ROA (%) ROI (%) ROE (%) Net profit after tax (mill) Retained earnings Growth rate(%) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) .601 .066 -.309 .385 .305 .425 .794(**) .006 .765(*) .016 .549 .100 .649(*) .042 .457 .185 .284 .427

From this table of correlation we can see that in AB Bank Limited the market price is highly correlated with ROA in a significant level of 0.01 which has a calculated value of 0.794. It is also highly correlated with ROI and Net profit after Taxes, which have value of 0.765 and 0.649 with a significant level of 0.05.

45 Regression (Coefficients)

Unstandardized Coefficients Model 1 (Constant) ROA (%) B 77.827 502.025 Std. Error 250.421 144.340

Standardized Coefficients Beta .818 t .311 3.478 Sig. .766 .013

In this table the ROA is seen the most constant with market price. So we can show this relationship in the equation Y =77.827+502.025X. It is a highly positive regression relation. Here market price is the dependent variable and ROA is responsible for the changes of market price. Al Arafa Islami Bank Limited Correlation
EPS PER DPR (%) ROA (%) ROI (%) ROE (%) Net profit after tax (mill) Retained earnings Growth rate(%) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) -.108 .767 -.278 .437 0.036 .921 -.301 .398 .169 .641 .124 .732 -.351 .321 -.347 .326 .132 .716

In terms of Al Arafa Islami Bank the correlation between market price and other variables is very low. The correlation with EPS, PER, ROA, NPAT and Retained earnings is negative. Again DPR, ROI, ROE and Growth rate are positively correlated with less calculated value.

46 Bank Asia Correlation

EPS PER DPR (%) ROA (%) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed)
-.259 .620 .907(*) .013 .069 .896 .278 .594

ROI (%) ROE (%) Net profit after tax (mill) Retained earnings Growth rate(%)

Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed)

-.353 .493 -.131 .804 -.510 .301 -.451 .446 .003 .995

Bank Asia has a mixture of positive and negative correlation. Here PER is highly correlated with the value of 0.907 in the significant level of 0.05. Whereas EPS, ROI, ROE, NPAT, Retained earnings are negatively correlated with the market price. And other variables have medium value. Coefficients
Model 1 (Constant) PER EPS Net profit after tax (mill) Retained earnings Unstandardized Coefficients B -265.412 37.981 7.657 -.030 -4.41E009 Std. Error .000 .000 .000 .000 .000 Standardized Coefficients Beta 1.187 .526 -.089 -.012 . . . . . . . . . . t Sig.

47 From the regression coefficient table we can see that there are multiple variables that are responsible for the changes of market price. In this case the Regression equation can be shown in the way: Y = -265.412+ 37.981X+ 7.657X2+ (-.030X3) + (-4.41X4). It is a high degree of negative correlation. Brac Bank Correlation
EPS PER DPR (%) ROA (%) ROI (%) ROE (%) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation
-.980 .128 .999(*) .028 -.994 .068 .410 .731 -.896 .293 .758

Net profit after tax (mill) Retained earnings Growth rate(%)

Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed)

.452 -.936 .230 -.941 .219 .961 .177

In the table the Brac Bank has a high correlation between market price and PER. It has a value of 0.999 in the significant level of 0.05. The EPS, DPR, ROI, NPAT and Retained earning are weakly correlated with market price. Coefficients
Unstandardized Coefficients Model 1 (Constant) PER EPS B -755.488 61.521 12.293 Std. Error .000 .000 .000 Standardized Coefficients Beta 1.272 .276 t . . . Sig. . . .

48 From the table we can show the regression equation, Y = -755.488+ 61.521X + 12.293X2. Here regression relationship is positive. PER and EPS are mostly responsible for the movement of share market price. Dhaka Bank Limited Correlation
EPS PER DPR (%) ROA (%) ROI (%) ROE (%) Net profit after tax (mill) Retained earnings Growth rate(%) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) -.239 .507 .899(**) .000 -.450 .224 -.246 .493 -.376 .284 -.297 .405 .323 .362 .418 .263 .397 .290

In terms of Dhaka Bank PER is highly correlated for the changes of market price. It has a value of 0.899 with the significant level of 0.01. But EPS, DPR, ROA, ROI and ROE have negative relationship. Coefficients
Unstandardized Coefficients Model 1 (Constant) PER EPS B -496.789 59.200 8.077 Std. Error 88.898 3.844 1.350 Standardized Coefficients Beta 1.062 .413 t -5.588 15.402 5.981 Sig. .005 .000 .004

The Regression equation can be expressed by: Y = -496.789 + 59.200X + 8.007X 2. Here PER and EPS are the mostly coefficient variable with the market price. 49 Dutch Bangla Bank Limited Correlation
EPS PER DPR (%) ROA (%) ROI (%) ROE (%) Net profit after tax (mill) Retained earnings Growth rate(%) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) .617 .077 .732(*) .025 -.836(*) .038 -.058 .882 -.538 .136 -.554 .121 .410 .273 .150 .700 .522 .149

In this table Dutch Bangla Bank has a highly positive correlation between PER and market price, which has a value of 0.732 with the significant level of 0.05. They have a high degree of negative correlation between DPR and market price the value of which is -0.836, at a significant level of 0.05. ROA, ROI, and ROE are negatively correlated. Other variables have a positive relationship. Coefficients

Model 1 (Constant) PER Net profit after tax (mill)

Unstandardized Coefficients Std. B Error -984.889 95.047 107.797 8.285 4.896 .435

Standardized Coefficients Beta .602 .521

t -10.362 13.011 11.247

Sig. .002 .001 .002

Here both PER and NPAT are responsible for the movements of market price of the share. The regression equation can be shown as: Y = -984.889 + 107.797X + 4.896 X2. It is a positive coefficient relationship. 50 Eastern Bank Limited Correlation
EPS PER DPR (%) ROA (%) ROI (%) ROE (%) Net profit after tax (mill) Retained earnings Growth rate(%) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) .292 .445 .908(**) .001 .320 .401 -.024 .952 -.346 .362 .013 .974 .475 .196 -.538 .135 -.197 .640

From the table of correlation of Eastern Bank Limited the PER is highly correlated with the share market price which has value of 0.908 in significant level of 0.01. ROA, ROI, Retained earnings, and growth rate have negative correlation with market price. Other variables are positively correlated. Coefficients

Model 1 (Constant) PER EPS Net profit after tax (mill)

Unstandardized Coefficients B Std. Error -687.559 52.691 51.253 1.478 16.325 1.087 -.242 .077

Standardized Coefficients Beta 1.049 .528 -.108

t -13.049 34.672 15.024 -3.153

Sig. .000 .000 .000 .034

Three variables PER, EPS and NPAT are co efficiently related with market price. The regression equation is: Y = -687.559 + 51.253X + 16.325 X2 + (-.242 X3). It is high degree of negative relationship. 51 EXIM Bank Limited Correlation
EPS PER DPR (%) ROA (%) ROI (%) ROE (%) Net profit after tax (mill) Retained earnings Growth rate(%) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed)
.737 .095 .749 .087 .029 .957 .350 .496 .524 .286 .633 .564 -.611 .198 -.479 .336 .544 .265

EPS, PER, ROI, ROE, DPR and Growth rate are positively correlated with market price of EXIM Bank Limited. But NPAT and Retain earning are negatively correlated. Coefficients
Model 1 (Constant) Net profit after tax (mill) ROI (%) Unstandardized Coefficients B Std. Error 1646.167 .000 -1.844 -16.828 .000 .000 Standardized Coefficients Beta . -1.135 -.144 . . . . . t Sig.

From the table we can say that the coefficient relation of market price with PER and ROI is negatively correlated, which can be expressed with regression equation: Y = 1646.167 + (-1.844X) + (-16.828 X2).

52 IFIC Bank Limited Correlation

EPS PER DPR (%) ROA (%) ROI (%) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) .793(**) .006 .284 .427 .767(**) .010 .263 .463 .924(**) .000 10 .954(**) .000 .864(**) .001 .856(**) .002 -.094 .811

ROE (%) Net profit after tax (mill) Retained earnings Growth rate(%)

In terms of IFIC Bank Limited it is seen that The EPS, DPR, ROI, ROE and NPAT are highly correlated with movements of market price. They have the value of 0.793, 0.767, 0.954, 0.864, and 0.856 accordingly with the significant level of 0.01. Only the Growth rate has a negative value of -0.094. Coefficients
Unstandardized Coefficients Model 1 B 102.602 52.678 Std. Error 114.288 6.596 Standardized Coefficients Beta .949 t .898 7.987 Sig. .399 .000

(Constant) ROE (%)

In this table the ROA is seen the most constant with market price. So we can show this relationship in the equation Y =102.602 +52.678X. It is a highly positive regression correlation. Here market price is the dependent variable and ROA is responsible for the changes of market price.

53 Islami Bank Limited Correlation

EPS PER DPR (%) ROA (%) ROI (%) ROE (%) Net profit after tax (mill) Retained earnings Growth rate(%) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed)
.266 .457 .155 .669 .535 .138 -.337 .341 .168 .665 -.280 .434 -.445 .198 -.384 .274 .194 .617

In the table of correlation the EPS, PER, DPR, ROI and Growth rate have positive relationship with the movements of market price. But ROA, ROE, NPAT and Retained earnings have negative relation. No variable has highly positive or negative correlation. Coefficients
Unstandardized Coefficients Model 1 (Constant) DPR (%) ROA (%) B 173.890 39.476 3796.927 Std. Error 818.193 6.145 884.342 Standardized Coefficients Beta .866 .579 t .213 6.425 4.294 Sig. .842 .003 .013

In this table of correlation the ROA and DPR is seen the most coefficient with market price. So we can show this relationship in the regression equation: Y =173.890 + 39.476X + 3796.927X2. It is a highly positive regression relation.

54 Jamuna Bank Limited Correlation

EPS PER Pearson Correlation Sig. (2-tailed) Pearson Correlation .924 .076 .067

DPR (%) ROA (%) ROI (%) ROE (%) Net profit after tax (mill) Retained earnings Growth rate(%)

Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed)

.933 -1.000(**) . -.028 .972 .236 .764 .172 .828 .621 .379 .583 .417 -.419 .581

Here the DPR has high degree of negative correlation with the movement of market price because it has a value of -1.00 in the significant level of 0.01. ROA and Growth rate has also negative calculated value. All other variables have positive correlation with the market price. Coefficients
Unstandardized Coefficients Model 1 (Constant) EPS B -10.645 9.384 Std. Error .000 .000 Standardized Coefficients Beta 1.000 t . . Sig. . .

In this table the EPS is seen the most correlated with market price. So we can show this relationship in the equation Y = -10.645 + 9.384X. It is a positive regression relation.

55 Mercantile Bank Limited Correlation

EPS PER DPR (%) ROA (%) ROI (%) ROE (%) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation -.282 .589 .862(*) .027 -.075 .888 .348 .500 .098 .854 .458

Net profit after tax (mill) Retained earnings Growth rate(%)

Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed)

.361 -.538 .271 -.117 .825 .180 .732

For Mercantile Bank the PER has a highly positive correlation with market price which has a value of 0.862 in significant level of 0.05. EPS, DPR, NPAT and Growth rate have negative correlation. Other variables are positively correlated. Coefficients
Unstandardized Coefficients Model 1 (Constant) PER B 172.376 19.478 Std. Error 71.241 5.735 Standardized Coefficients Beta .862 t 2.420 3.396 Sig. .073 .027

Only PER has the most coefficient regression relation with the market price. This relation can be shown as the regression equation: Y = 172.376 + 19.478X. It is a highly coefficient relationship.

56 Mutual Trust Bank Limited Correlation

EPS PER DPR (%) ROA (%) ROI (%) ROE (%) Net profit after tax (mill) Retained earnings Growth rate(%) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) -.326 .528 .644 .168 .418 .410 -.244 .641 -.856 .346 -.448 .450 -.757 .082 -.575 .232 -.589 .218

From the table of Mutual Trust Bank we can see that only PER and DPR have positive relationship with the share market price. All other variables have negative value.

57 National Bank Limited Correlation

EPS PER DPR (%) ROA (%) ROI (%) ROE (%) Net profit after tax (mill) Retained earnings Growth rate(%) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) .567 .088 .769(**) .009 .305 .391 .784(**) .007 .747(*) .033 .497 .144 .614 .059 .307 .421 .756(*) .018

The PER and ROA has a highly positive correlation with the value of 0.769 and 0.784 in significant level of 0.01. Again ROI and Growth rate is also highly correlated with the value of 0.747 and 0.756 in the significant level of 0.05. There is no variable that has a negative correlation. Coefficients

Unstandardized Coefficients Model 1 (Constant) ROA (%) B 111.289 318.317 Std. Error 164.095 89.125

Standardized Coefficients Beta .784 t .678 3.572 Sig. .517 .007

Only ROA has the most coefficient regression relation with the market price. This relation can be shown as the regression equation: Y = 111.289 + 318.317X. It is a highly coefficient relationship.

58 NCC Bank Limited Correlation

EPS PER DPR (%) ROA (%) ROI (%) ROE (%) Net profit after tax (mill) Retained earnings Growth rate (%) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) .682(*) .030 .783(**) .007 .755(*) .012 .785(**) .007 .507 .135 .519 .125 .730(*) .017 .650(*) .042 .657 .055

From the table of EPS, DPR, NPAT and Retained earnings are highly correlated with the value of 0.682, 0.755, 0.730, and 0.650 accordingly in the significant level of 0.05. The PER and ROA are also highly significant with the value of 0.783 and 0.785 in level of significance 0.01. Coefficients
Unstandardized Coefficients Model 1 (Constant) DPR (%) B 85.802 5.777 Std. Error 84.136 1.690 Standardized Coefficients Beta .791 t 1.020 3.418 Sig. .342 .011

Only DPR has the most coefficient regression relation with the market price. This relation can be shown as the regression equation: Y = 85.802 + 5.777X. It is a highly coefficient relationship.

59 One Bank Limited Correlation

EPS PER DPR (%) ROA (%) ROI (%) ROE (%) Net profit after tax (mill) Retained earnings Growth rate(%) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) -.194 .713 .703 .119 .782 .118 .535 .274 -.102 .848 -.030 .954 .197 .708 -.339 .511 .271 .604

Correlation table of One Bank Limited shows that the EPS, ROI, ROE and Retained earnings has negative relationship with market price whereas other variable has positive relation. PER and DPR are highly correlated.

60 Prime Bank Limited Correlation

EPS PER DPR (%) ROA (%) ROI (%) ROE (%) Net profit after tax (mill) Retained earnings Growth rate(%)

Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed)

-.258 .472 .586 .075 .350 .321 -.708(*) .022 .174 .632 .584 .076 .451 .191 .279 .504 -.215 .578

Prime Banks Share market price has negative correlation with EPS, ROA and growth rate from which ROA is high degree of negative correlation with value of -0.708 in the significant level of 0.05. All other variables have positive relation but not very high. Coefficients
Unstandardized Coefficients Model 1 (Constant) ROA (%) B 898.586 -115.528 Std. Error 128.162 40.783 Standardized Coefficients Beta -.708 T 7.011 -2.833 Sig. .000 .022

ROA has a coefficient relation with the market price which can be shown as the regression equation: Y = 898.586 + (-115.528X).

61 Pubali Bank Limited Correlation

EPS PER DPR (%) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) .901(*) .014 .426 .400 .826(*) .043

ROA (%) ROI (%) ROE (%) Net profit after tax (mill) Retained earnings Growth rate(%)

Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed)

-.585 .223 -.010 .985 -.256 .625 -.693 .127 -.915(*) .029 .988(**) .002

Highly positive correlation can be seen in the table for EPS and DPR with the market price. They have value of 0.901 and 0.826 in the significant level of 0.05. Again Growth rate is also highly significant with the value of 0.988 in a significant level of 0.01. Retained Earnings is negatively correlated which has a value of -0.915 at a significant level of 0.05. ROA, ROI, ROE and NPAT are also negatively correlated whereas PER is positively correlated. Coefficients
Mode l 1 (Constant) Growth rate(%) Unstandardized Coefficients B 545.678 5.027 Std. Error 67.551 .448 Standardized Coefficients Beta 8.078 .988 11.215 .004 .002 t Sig.

Here the regression equation can be shown as: Y = 545.678 + 5.027X, where the independent variable is only the Growth Rate. 62 Social Investment Bank Limited Correlation
EPS PER DPR (%) ROA (%) ROI (%) ROE (%) Net profit after tax Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation .827(*) .042 .300 .563 -.836 .164 -.682 .135 -.539 .638 .774 .436 -.620

(mill) Retained earnings Growth rate (%)

Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed)

.189 -.615 .194 -.371 .469

In this table EPS has a highly significant relationship that has a value of 0.827 at a significant level of 0.05. PER and ROE also have a positive relation. But DPR, ROA, ROI, NPAT, Retained earnings and Growth rate have negative correlation.

63 SouthEast Bank Limited Correlation

EPS PER DPR (%) ROA (%) ROI (%) ROE (%) Net profit after tax (mill) Retained earnings Growth rate(%) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) -.423 .224 .894(**) .000 .402 .250 -.207 .567 -.448 .195 -.311 .382 .109 .764 .198 .584 .394 .294

In the table of correlation of SouthEast Bank Limited the PER has the highest positive correlation

with the market price which has value of 0.894 at a significant level of 0.01. Market Price has negative correlation with EPS, ROA, ROI and ROE. It has positive correlation with DPR, NPAT, Retained earnings and Growth rate. Coefficients
Model 1 (Constant) PER ROA (%) Net profit after tax (mill) Unstandardized Coefficients B -188.558 40.091 215.295 -.071 Std. Error 74.096 3.328 40.532 .023 Standardized Coefficients Beta 1.213 .539 -.255 -2.545 12.047 5.312 -3.039 .052 .000 .003 .029 t Sig.

From the table we can say that the market price movement is co efficiently depended on PER, ROA and NPAT which can be shown as: Y = -188.558 + 40.091X + 215.295X2 + (-0.071X3).

64 Standard Bank Limited Correlation

EPS PER DPR (%) ROA (%) ROI (%) ROE (%) Net profit after tax (mill) Retained earnings Growth rate(%) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) .284 .585 .545 .263 -.678 .139 .046 .941 .493 .321 .233 .657 -.554 .254 -.580 .227 -.171 .746

Correlation table of Standard Bank Limited shows that EPS, PER, ROA, ROI, ROE has positive correlation with the market price. But DPR, NPAT, Retained earnings and growth rate are negatively correlated. Coefficients
Model Unstandardized Coefficients Standardized Coefficients t Sig.

(Constant) PER

B -28.276 34.187

Std. Error 47.913 4.487

Beta .975 -.590 7.620 .597 .005

Only PER has the most coefficient regression relation with the market price. This relation can be shown as the regression equation: Y = -28.276 + 34.187X. It is negative coefficient relationship.

65 City Bank Correlation

EPS PER DPR (%) ROA (%) ROI (%) ROE (%) Net profit after tax (mill) Retained earnings Growth rate(%) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) .569 .086 -.233 .516 .310 .550 -.249 .488 .710(*) .021 -.375 .286 .774(**) .009 .160 .705 .524 .148

ROI is highly correlated with a value of 0.710 at significant level of 0.05 and NPAT is highly correlated with a value of 0.774 at a significant level of 0.01. PER, ROA and ROE has negative value whereas EPS, DPR, Retained earnings and growth rate have positive calculated value. Coefficients
Unstandardized Coefficients Model 1 (Constant) EPS B 419.509 5.339 Std. Error 91.508 1.629 Standardized Coefficients Beta .884 t 4.584 3.277 Sig. .019 .047

EPS is highly coefficient with the market price which can be shown as the equation of regression: Y

= 419.509 + 5.339X.

66 United Commercial Bank Limited Correlation

EPS PER DPR (%) ROA (%) ROI (%) ROE (%) Net profit after tax (mill) Retained earnings Growth rate(%) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) .850(*) .015 .696 .082 .(a) . .747 .054 .572 .179 .464 .294 .919(**) .003 .878(**) .009 -.202 .701

EPS is highly correlated which has a value of 0.850 at a significant level of 0.05. NPAT and Retained earnings are highly correlated with value of 0.919 and 0.878 at significant level of 0.01. Growth rate has negative correlation with the market price. All other variables are positively correlated.

67 Coefficients
Model 1 (Constant) Net profit after tax (mill) PER Unstandardized Coefficients B -966.331 3.917 101.942 Std. Error 370.917 .605 30.443 Standardized Coefficients Beta -2.605 .774 .400 6.473 3.349 .080 .007 .044 t Sig.

Co efficiency of variables is shown above. It can be expressed by the regression equation: Y = -966.331 + 3.917X + 101.942X2. It shows a positive relation. Uttara Bank Limited Correlation
EPS PER DPR (%) ROA (%) ROI (%) ROE (%) Net profit after tax (mill) Retained earnings Growth rate(%) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) .330 .523 .793 .060 .458 .438 -.417 .411 -.464 .354 -.455 .365 -.581 .227 -.513 .298 -.023 .965

Correlation table shows that EPS, PER and DPR has positive correlation among them PER is highly correlated. All other variables are negatively correlated with market price.

68 Coefficients
Model Unstandardized Coefficients Standardized Coefficients t Sig.

(Constant) PER

B 973.847 72.665

Std. Error 273.616 9.457

Beta 3.559 .976 7.684 .038 .005

PER has the most coefficient regression relation with the market price. This relation can be shown as the regression equation: Y = 973.847 + 72.665X. It is a positive coefficient relationship. Rupali Bank Limited Correlation
EPS PER DPR (%) ROA (%) ROI (%) ROE (%) Net profit after tax (mill) Retained earnings Growth rate (%) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed)
-.836(*) .038 -.022 .967 .(a) . -.869(*) .024 -.100 .851 .903(*) .036 -.836(*) .038 -.851(*) .032 -.867 .057

All the variables have negative correlation with the market price. EPS, ROA, ROE, NPAT and growth rate are highly negative with value of -0.836, -0.869, -0.903, -0.836, -0.851 at the significant level of 0.05.

69 Shahjalal Islami Bank Limited Correlation

EPS PER DPR (%) ROA (%) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation .959 .182 -.528 .646 -.816 .392 -.435

ROI (%) ROE (%) Net profit after tax (mill) Retained earnings Growth rate(%)

Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed) Pearson Correlation Sig. (2-tailed)

.714 -.980 .128 -.362 .764 -1.000(**) . .355 .769 .610 .582

From the Correlation table it is seen that NPAT has highly negative correlation with the market price with a value of -1.00 at a significant level of 0.01. EPS has highly positive correlation and Retained earnings and Growth rate are also positively correlated. PER, DPR, ROA, ROI and ROE have negative correlation. Coefficients
Unstandardized Coefficients Model 1 (Constant) EPS B -34.150 11.575 Std. Error .000 .000 Standardized Coefficients Beta 1.000 t . . Sig. . .

EPS is highly coefficient with the market price which can be shown as the equation of regression: Y = -34.150 + 11.575X. It is a positive correlation