Volume 4 •  Number 4  • April  2010

Impact of Dividend Announcement On Share Price: An Evaluation Study

An efficient and integrated financial market is an important infrastructure that facilitates savings, investments and consequent economic growth. The financial markets include money market and capital market. Capital market is the market for trading long-term securities whereas; money market is for short-term securities. It is a universally accepted fact that the financial system and the capital market in particular act as the barometer of the health of an economy. Free and efficient capital markets ensure that the resources are allocated wisely and faster. The event study is an important research tool in economics and finance. The goal of an event study is to measure the effects of an economic event on the value of firms. Event study methods exploit the fact that given rationality in the marketplace, the effects of an event will be reflected immediately in security prices. Thus, the impact can be measured by examining security prices surrounding the event. There are various types of events like Mergers & Acquisitions, Quarterly Earnings, Dividend Issue, Bonus Issue, Stock Split, Buyback of Share, etc. that has a reaction over the prices of securities in the capital market. Bonus shares are free shares of stock given to current shareholders, based upon the number of shares that a shareholder owns. While this stock action increases the number of shares owned, it does not increase the total value. This is due to the fact that since the total number of shares increases, the ratio of number of shares held to the number of shares outstanding remains constant.

Dr.M.Selvam
Reader and Head
Department of Commerce and Financial Studies,Bharathidasan University
Tiruchirappalli,Tamil Nadu
drmselvam@yahoo.co.in

Dr.M.Babu
Lecturer
Department of Commerce and Financial Studies,Bharathidasan University
Tiruchirappalli,Tamil Nadu
babuphd@gmail.com

G.Indhumathi
PhD Research Scholar
Department of Commerce and Financial Studies,Bharathidasan University
Tiruchirappalli,Tamil Nadu
indhu_nila@rediffmail.com

N.Kogila
Research Scholar
Department of Commerce and Financial Studies,Bharathidasan University
Tiruchirappalli,Tamil Nadu
 

The banking industry, one of the most important instruments of the national development occupies a unique place in a nation’s economy. Profit is the main reason for the continued existence of every commercial organization and profitability depicts the relationship of the absolute amount of profit with various other factors. The main source of operating income of a commercial bank are- interest and discount earned, commission, brokerage, income from non banking assets and profit from sale of or dealing with such assets and other receipts. The expenditure broadly consists of – interest paid on deposits and borrowings and non interest cost or charges incurred on staff salary, stationery, rent, law charges, postage, telegram, telephone etc. In this context, some attempts have already been made at individual as well as at the official level and various aspects of commercial banking profitability have been discussed.

Jyoti Saluja
Research Fellow
Department of Commerce
Punjabi University
Patiala,Punjab
jyotisaluja83@gmail.com

Dr.Rajinder Kaur
Reader
Department of Commerce
Punjabi University
Patiala,Punjab
 

Towards A Behavioral Model For Assets Pricing : Evidence From The Tunisian Stock Exchange

The conception of a concise and rational model for assets pricing in an efficient market’s context has been, for a long time, the axis of concern for the researchers of finance. This was warranted by the contributions of Sharpe (1964) Sharpe and Linter (1965) in their test to express the price of an asset by the systematic risk of this, last via the famous model of assets pricing known as the CAPM (Capital Assets Pricing Model). The identification of the systematic risk is initially on some theoretical bases, that it is about the CAPM developed by Sharpe (1964), Sharpe and Lintner (1965) and Mossin (1966) or of the theory of the arbitrage pricing theory (APT) introduced by Ross (1976) and illustrated by Chen, Roll and Ross (1986).

Ben Mabrouk Houda
PhD Student of Accounting and Financial Methods
University of Sfax
Tunisia
benmabroukhouda@yahoo.fr

Bouri Abdelfettah
Professor of Finance
University of Sfax
Tunisia

abdelfettah.bouri@fsegs.rnu.nat.tn

Analysis of Asymmetery In The Price-Volume Relation: Evidence From The Pakistani Stock Market

Market participants keep a close eye on trading volume as it reflects the dynamic interplay between informed traders and uninformed traders who interact with each other and set market clearing prices. Volume represents the total number of shares traded for a given time period and measures the liquidity in a stock or index. The higher the volume, the narrower are the spreads, less slippage, and less volatility. Trading volume is viewed by traders as the critical piece of information that signals the price movements. Stock prices are usually influenced by positive trading volume through the available set of relevant information on the market. A revision in investors’ expectations usually leads to an increase in trading volume, which eventually reflects the sum of investors’ reaction to news. Trading volume either activates or deactivates the price movements.

Fauzia Mubarik
Lecturer
National University of Modern Languages
Islamabad,Pakistan

fauziamubarik@yahoo.com

Dr.Attiya Y.Javid
Senior Research Economist
Pakistan Institute of Development Economics
Islamabad,Pakistan
attiyajavid@pide.org.pk

Loan Recovery and Asset Quality of Commercial Banks : An Empirical Analysis

The recovery performance of commercial banks is the sin qua non for their liquidity of funds. Loan recovery is the main the factor which determines the quality of loan assets of banks. The mounting overdues lead to high level of non performing assets (NPA) and thereby deteriorate the asset quality. It consequently restricts the banks’ lending capacity and stands in the way of dilution of funds to developmental activities and hence, the socio economic development of the area gets impacted. Thus, improving the quality of loan assets is the true test of improved efficiency of the banking system.

Dr.Jaynal Uddin Ahmed
Reader
Department of Management
North Eastern Hill University
Chandmari,Tura,Meghalaya

jaynaluahmed@yahoo.co.in