Asian Business Review

1-4

Authors: Dr. Bilkis Raihana

This study is exploratory in nature. Changes in productivity in Bangladesh agriculture are issues of continuing research and policy interest. This article aims at interpreting the trends of productivity studies in Bangladesh agriculture sector including techniques, methods andmodels. This will be pursued on the basis of literature review of published books, journals and materials. Recent research developments in the study of productivity measurement have emphasized two things: the superiority of Total factor productivity (TFP) indexes and the use of flexible weight indexing procedures. But most of the earlier research work in Bangladesh agriculture has not incorporated both these approaches simultaneously. Efforts have been made to provide some recommendations to enhance the productivity studies in Bangladesh agriculture Keywords: Trends, Research, Productivity, Bangladesh agriculture JEL Classification Code: Q13; Q15; O13

9-14

Authors: Sayed Mohibul Hossen

Agriculture is an important sector for the overall development of any country like Bangladesh. Guava is amajor crop of Bangladesh, which has a significant demand in the local market. In this research, we have made a market study of guava by using time series agricultural data. The aim of the research is to know the cultural practices of guava and to study market model of guava in Bangladesh and to identify the best model that may be used for forecasting purposes. Three models (CLRM, ANCOVA and Log-Lin regression model) have been considered in this study. Ordinary least square (OLS) procedures have been used for estimation purpose. Reliable parameter estimates of the CLRM, ANCOVA and Log-Lin regression (Shil & Nath, 2008) modelwith minimum standard errors, high explanatory power have been obtained in this research. Keywords:Guava, Production, Prospect, Bangladesh. JEL Classification Code:Q110

21-29

Authors: Dr. Babu Jose, & Dr. D. Lazar

This study is to estimate optimal hedge ratio with the variables from Indian futures and spot market and also nineteen individual stock prices. Diagonal VEC-GARCH model is used for the period from June 2000 to June 2011. The Empirical results confirm that there is effective risksharing and hedging processes in Indian futures market. It is also found that Indian futures and spot markets have strong causal relationship; which allows the trader to make perfect arbitrage process and hedge their risks. Keywords : Hedge Ratio, Futures Market, Spot Market, Causal Relationship JEL Classification Code: G190

37-48

Authors: Abdullah Al Masum, & Fatema-Tuz-Johora

This paper applies performance evaluation of ceramic industry of Bangladesh and to test its financial soundness. The main aim is achieved through ratio analysis of four selected ceramic (Fu Wang, Monno, Shinepukur and Standard) companies in Bangladesh. Measurement of financial performance by ratio analysis helpsidentify organizational strengths and weaknesses by detecting financial anomalies and focusing attention on issues of organizational importance. The financial performance of this industry is measured in terms of profitability, solvency, efficiency and liquidity analysis and to test the financial soundness, Multivariate Discriminate Analysis (MDA) is used, which was developed by Prof. Altman. The study covers four public sector ceramic companies listed on Dhaka Stock Exchange. The study has been undertaken for the period of five years from 2006-7 to 2010-2011 and the necessary data has been obtained from the audited annualreport of the selected companies. The liquidity position was very weak in all the cases of the selected companies and thereby reflecting the difficulties in paying short-term obligation on due date. Financial stability of the selected companies has shown an upward trend. This study will help investors to identify the nature of financial performance of the ceramic industry of Bangladesh and will also help to take investment decision. Keywords : Ratio Analysis, Financial Distress, Altman Z Score, MDA, Bankruptcy. JEL Classification Code: M00; M13

56-66

Authors: Farid A. Sobhani, & Azlan Amran

This paper aims to explore the perceptions of senior bankers concerning nondisclosure of sustainability issues within the context of Bangladesh. The main objective of this paper is to critically examine the reasons for managerial reluctance to report corporate sustainability issues for two competing banks in Bangladesh, in general, and crucial issues, such as energy, human rights, and environmental issues, in particular. The study considered the perceptions of senior managers of two selected banks as gathered through an interview process. In total, 20 senior bankers of the two banks were interviewed to ascertain their perceptions concerning nondisclosure of corporate sustainability issues. The study found numerous reasons behind the nondisclosure ofsustainability issues, such as the lack of sufficient resources, absence of the practice by other banks, lack of a legal framework, lack of pressure from any other concern, absence of a sustainable corporate plan, shortage of manpower, lack of infrastructure and logistic support, and the cost involved. From an institutional perspective, organizational changes are not always favourable, sometimes organizational actors adapt strategies to resist any change. This research provides an explanation for non-disclosed items in the two selected banks’ sustainability reporting. The findings provide some indication of how such practices can be developed further. Keywords: Sustainability issue, Nondisclosure, Banks, Institutional theory, Bangladesh. JEL Classification Code: M49

72-79

Authors: Md Lutfor Rahman, Mohammad Ruhul Amin, & Md. Noman Siddikee

This study analyzes the impact of different types of dividend declaration, namely stock and cash dividends. Using event study method, MAAR and CAAR, this study found no evidence of abnormal returns on the declaration day for either of the types of dividends. However, significant negative returns are reported on days prior to the declaration day for stock dividend,indicating speculative nature of the investors. Furthermore, it provides positive returns during the post-announcement period as the investors realize the chance of potential gains. However, as far ascash dividend is concerned companies listed under DSE do not provide any significant abnormal returns during the 60 days event window. For CAAR, no significant return is reported for cash dividend, while stock dividend provided a maximum 5.6% abnormal returns during the post announcement period. JEL Classification Code: M41; M49