The Bubble Period and Its Effect on Share Market in Bangladesh: Expedient or Confusion

S. M. Feroj Mahmood; Israt Zaman Khan Zarin

doi:doi:10.11648/j.ijsmit.20160206.11

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The Bubble Period and Its Effect on Share Market in Bangladesh: Expedient or Confusion

S. M. Feroj Mahmood, Israt Zaman Khan Zarin

Published in International Journal of Sustainability Management and Information Technologies (Volume 2, Issue 6)

Received: 2 October 2016 Accepted: 26 November 2016 Published: 17 March 2017

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Abstract

This study was conducted to analyze the short run and long run price performance of IPOs in Bangladesh. Based on the information’s that was issued during the period between 2001 and 2010. A bubble is a financial cycle described by fast heightening of advantage costs took after by a withdrawal. At the point when no more financial specialists will purchase at the hoisted value, a huge selloff happens, bringing on the rise to empty. This study also includes that when there is an overabundance of IPOs in a bubble market, a large portion of the IPO companies fail completely and never achieve what is promised to the investors, or can even be vehicles for fraud. The absence of price variation may result in a loss of investors’ interest to participate in the market.

Published in	International Journal of Sustainability Management and Information Technologies (Volume 2, Issue 6)
DOI	10.11648/j.ijsmit.20160206.11
Page(s)	32-36
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Share Market, Bubble Period, IPO, Short Run, Long Run

References

[1]	Kaminsky, G. L., and C. M. Reinhart (1999): The Twin Crises: The Causes of Banking and Balance-Of-Payments Problems," American Economic Review, 89 (3), 473-500.
[2]	Hsu, Hung-Chia., Reed, A. V. and Rocholl, J. (2010). The New Game in Town: Competitive Effects of IPOs, The Journal of Finance Vol. 65, No. 2.
[3]	Lian, Q. and Wang, Q. (2009). Does the Market Incorporate Previous IPO Withdrawals When Pricing Second-Time IPOs, Financial Management Vol. 38, No. 2, pp. 357-380.
[4]	Solaiman, S. M. (2005). Securities Market in Bangladesh: A Critical Appraisal of its Growth Since its Inception in 1954, Savings and Development Vol. 29, No. 2, pp. 169-198.
[5]	Islam, M. S., Malik, M. and Uddin, M. R. (2011), Long Run Price Performance of IPO Stocks in Bangladesh, Journal of Finance and Banking, Volume 9, Number 2.
[6]	Islam, M. A., Ali, R. and Ahmad, Z. (2010). An Empirical Investigation into the Underpricing of Initial Public Offerings in the Chittagong Stock Exchange, International Journal of Economics and Finance, Vol 2, No 4.
[7]	Abreu, D., and M. K. Brunnermeier (2003): Bubbles and Crashes," Econometrica, 71 (1), 173-204.
[8]	Choi, Seung-Doo., Lee, I. and Megginson, W. (2010). Do Privatization IPOs Outperform in the Long Run, Financial Management Vol. 39, No. 1, pp. 153-185.
[9]	Schularick, M., and A. M. Taylor (2012): Credit Booms Gone Bust: Monetary Policy, Leverage Cycles, and Financial Crises, 1870-2008," American Economic Review, 102 (2), 1029-1061.
[10]	Sato, Y. (2009): Ranking Concerns of Fund Managers and the Persistence of Bubbles," Working Paper, London School of Economics.

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APA Style

S. M. Feroj Mahmood, Israt Zaman Khan Zarin. (2017). The Bubble Period and Its Effect on Share Market in Bangladesh: Expedient or Confusion. International Journal of Sustainability Management and Information Technologies, 2(6), 32-36. https://doi.org/10.11648/j.ijsmit.20160206.11

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ACS Style

S. M. Feroj Mahmood; Israt Zaman Khan Zarin. The Bubble Period and Its Effect on Share Market in Bangladesh: Expedient or Confusion. Int. J. Sustain. Manag. Inf. Technol. 2017, 2(6), 32-36. doi: 10.11648/j.ijsmit.20160206.11

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AMA Style

S. M. Feroj Mahmood, Israt Zaman Khan Zarin. The Bubble Period and Its Effect on Share Market in Bangladesh: Expedient or Confusion. Int J Sustain Manag Inf Technol. 2017;2(6):32-36. doi: 10.11648/j.ijsmit.20160206.11

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@article{10.11648/j.ijsmit.20160206.11,
  author = {S. M. Feroj Mahmood and Israt Zaman Khan Zarin},
  title = {The Bubble Period and Its Effect on Share Market in Bangladesh: Expedient or Confusion},
  journal = {International Journal of Sustainability Management and Information Technologies},
  volume = {2},
  number = {6},
  pages = {32-36},
  doi = {10.11648/j.ijsmit.20160206.11},
  url = {https://doi.org/10.11648/j.ijsmit.20160206.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijsmit.20160206.11},
  abstract = {This study was conducted to analyze the short run and long run price performance of IPOs in Bangladesh. Based on the information’s that was issued during the period between 2001 and 2010. A bubble is a financial cycle described by fast heightening of advantage costs took after by a withdrawal. At the point when no more financial specialists will purchase at the hoisted value, a huge selloff happens, bringing on the rise to empty. This study also includes that when there is an overabundance of IPOs in a bubble market, a large portion of the IPO companies fail completely and never achieve what is promised to the investors, or can even be vehicles for fraud. The absence of price variation may result in a loss of investors’ interest to participate in the market.},
 year = {2017}
}

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TY  - JOUR
T1  - The Bubble Period and Its Effect on Share Market in Bangladesh: Expedient or Confusion
AU  - S. M. Feroj Mahmood
AU  - Israt Zaman Khan Zarin
Y1  - 2017/03/17
PY  - 2017
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T2  - International Journal of Sustainability Management and Information Technologies
JF  - International Journal of Sustainability Management and Information Technologies
JO  - International Journal of Sustainability Management and Information Technologies
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PB  - Science Publishing Group
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AB  - This study was conducted to analyze the short run and long run price performance of IPOs in Bangladesh. Based on the information’s that was issued during the period between 2001 and 2010. A bubble is a financial cycle described by fast heightening of advantage costs took after by a withdrawal. At the point when no more financial specialists will purchase at the hoisted value, a huge selloff happens, bringing on the rise to empty. This study also includes that when there is an overabundance of IPOs in a bubble market, a large portion of the IPO companies fail completely and never achieve what is promised to the investors, or can even be vehicles for fraud. The absence of price variation may result in a loss of investors’ interest to participate in the market.
VL  - 2
IS  - 6
ER  -

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Author Information

S. M. Feroj Mahmood

Senior Lecturer, Department of Business Administration, Notre Dame University Bangladesh, Dhaka, Bangladesh
Israt Zaman Khan Zarin

Department of Business Administration, Notre Dame University Bangladesh, Dhaka, Bangladesh

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APA Style

S. M. Feroj Mahmood, Israt Zaman Khan Zarin. (2017). The Bubble Period and Its Effect on Share Market in Bangladesh: Expedient or Confusion. International Journal of Sustainability Management and Information Technologies, 2(6), 32-36. https://doi.org/10.11648/j.ijsmit.20160206.11

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ACS Style

S. M. Feroj Mahmood; Israt Zaman Khan Zarin. The Bubble Period and Its Effect on Share Market in Bangladesh: Expedient or Confusion. Int. J. Sustain. Manag. Inf. Technol. 2017, 2(6), 32-36. doi: 10.11648/j.ijsmit.20160206.11

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AMA Style

S. M. Feroj Mahmood, Israt Zaman Khan Zarin. The Bubble Period and Its Effect on Share Market in Bangladesh: Expedient or Confusion. Int J Sustain Manag Inf Technol. 2017;2(6):32-36. doi: 10.11648/j.ijsmit.20160206.11

Copy | Download

@article{10.11648/j.ijsmit.20160206.11,
  author = {S. M. Feroj Mahmood and Israt Zaman Khan Zarin},
  title = {The Bubble Period and Its Effect on Share Market in Bangladesh: Expedient or Confusion},
  journal = {International Journal of Sustainability Management and Information Technologies},
  volume = {2},
  number = {6},
  pages = {32-36},
  doi = {10.11648/j.ijsmit.20160206.11},
  url = {https://doi.org/10.11648/j.ijsmit.20160206.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijsmit.20160206.11},
  abstract = {This study was conducted to analyze the short run and long run price performance of IPOs in Bangladesh. Based on the information’s that was issued during the period between 2001 and 2010. A bubble is a financial cycle described by fast heightening of advantage costs took after by a withdrawal. At the point when no more financial specialists will purchase at the hoisted value, a huge selloff happens, bringing on the rise to empty. This study also includes that when there is an overabundance of IPOs in a bubble market, a large portion of the IPO companies fail completely and never achieve what is promised to the investors, or can even be vehicles for fraud. The absence of price variation may result in a loss of investors’ interest to participate in the market.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - The Bubble Period and Its Effect on Share Market in Bangladesh: Expedient or Confusion
AU  - S. M. Feroj Mahmood
AU  - Israt Zaman Khan Zarin
Y1  - 2017/03/17
PY  - 2017
N1  - https://doi.org/10.11648/j.ijsmit.20160206.11
DO  - 10.11648/j.ijsmit.20160206.11
T2  - International Journal of Sustainability Management and Information Technologies
JF  - International Journal of Sustainability Management and Information Technologies
JO  - International Journal of Sustainability Management and Information Technologies
SP  - 32
EP  - 36
PB  - Science Publishing Group
SN  - 2575-5110
UR  - https://doi.org/10.11648/j.ijsmit.20160206.11
AB  - This study was conducted to analyze the short run and long run price performance of IPOs in Bangladesh. Based on the information’s that was issued during the period between 2001 and 2010. A bubble is a financial cycle described by fast heightening of advantage costs took after by a withdrawal. At the point when no more financial specialists will purchase at the hoisted value, a huge selloff happens, bringing on the rise to empty. This study also includes that when there is an overabundance of IPOs in a bubble market, a large portion of the IPO companies fail completely and never achieve what is promised to the investors, or can even be vehicles for fraud. The absence of price variation may result in a loss of investors’ interest to participate in the market.
VL  - 2
IS  - 6
ER  -

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