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Showing posts from November, 2015

Corporate Governance and Stock Market of Bangladesh

Inception of Corporate Governance
In Bangladesh, Corporate Governance is relatively new idea. The first initiative was taken by a private consulting firm, Bangladesh Enterprise Institute (BEI), in August 2003 when it conducted a diagnostic study in this field. Based on the study, the BEI published the corporate governance code for Bangladesh in March 2004. Subsequently the Institute of Chartered Accountants of Bangladesh (ICAB) came up with principles and rules to be followed. In January 2006, the SEC issued an order for complying with a number of governance codes. However those conditions are imposed on ‘comply or explain’ basis. The companies listed with any stock exchange in Bangladesh should comply with those conditions or shall explain the reasons for non-compliance.

One reason for the slow progress in adopting corporate governance in Bangladesh is that most of the listed companies in Bangladesh are owned by family members or peers. The owner becomes the chief executive officer and…

The Best Free Security for WordPress Site

There are hundreds of free and paid solutions for WordPress website. When earnings from the site grows, people tend to choose paid solutions. Still I rely on 4 plugins + 1 solutions for the best FREE security for WordPress site.
Best Free Security Plugins:
Akismet Plugin
It protects you from spammers. As they says:
Akismet checks your comments against the Akismet Web service to see if they look like spam or not and lets you review the spam it catches under your blog's "Comments" admin screen.
This is fully automatic solutions. You just need to Install, Connect to Your account and Relax. The plugin have premium packs also. But the free version is enough for me.
Jetpack Plugin
It carries on lots of responsibilities for free. Among those tons of features, WordPress is sophisticated. As they says,
Jetpack protects your site against brute force attacks and unauthorized logins. We also monitor your site for downtime and keep your plugins updated.
Keeping your plugins upda…

Opportunities & Threats of Private University Industry of Bangladesh

Private university industry of Bangladesh experienced a boom within first 20 years as the rise of universities accelerated. In 2013, the total number of private universities was 79, with 10 new private universities waiting for approval from government in 2014.
Opportunities of  private university industry of Bangladesh

Due to political instability private universities have better image than public universities
Public universities cannot fulfill the demand of higher education
In order to get social recognition, top most business entrepreneurs becoming interested to be the members of the Board of Trustees. As a result donors’ donation can be utilized in quality improvement of various sectors
Most of the private universities are in commercial area
Most of the private universities have less number of full-time faculties
Education standard of private universities is increasing
Projects and assignment assigned to the students are more practical and realistic
Course Curriculum of private universities…

Agency Problem in Bangladesh

Agency Problem in Bangladesh
Agency problem is very common in Bangladesh. It might be inherited in our culture. Most of the young people interested in govt. jobs are looking for secured a job with less challenges in daily work life. They don't want a goal oriented or target driven work environment. Though there are many exception, like defense. law enforcement, local administrative jobs etc.

National private companies have mixed job environment. Many organizations are still in primitive stage. They pay the least amount to employees when labor union is very uncommon. Practice of good corporate governance and tools of agency problem reduction is getting evolved in leading group of companies. There is a long way to go in this issue.
Agency Theory
Under the Principal-Agent theory there is a trade-off between incentives and risk sharing. Managers are motivated to work hard through “high powered” incentives. They are also protected from risk through “low-powered” incentives. For example, co…

Structure of Corporate Governance

The edifice of corporate governance includes, among others, board composition, relationship between the board and the management, internal control mechanisms, independent audit committee etc. The OECD principles of corporate governance cover six key areas of corporate governance –

Ensuring the basis for an effective corporate governance framework;

The corporate governance framework should promote transparent and efficient markets, be consistent with the rule of law and clearly articulate the division of responsibilities among different supervisory, regulatory and enforcement authorities.

The rights of shareholders;

The corporate governance framework should protect and facilitate the exercise of shareholders’ rights.

The equitable treatment of shareholders;

The corporate governance framework should ensure the equitable treatment of all shareholders, including minority and foreign shareholders. All shareholders should have the opportunity to obtain effective redress for violation of their rig…

Corporate Governance and Bangladesh

Corporate governance is relatively newer idea in Bangladesh. It became an area of huge interest worldwide after collapses of few giant firms. Ill practice in accounting is one of the main sources of bad corporate governance which ultimately hamper the investors’ interest.
Corporations are republics. The ultimate authority rests with voters (shareholders). These voters elect representatives (directors) who delegate most decisions to bureaucrats (managers).
There is widespread evidence that good corporate governance is associated with greater firm performance. It is positively correlated with operating performance, market valuation, and dividend payout. the direction of causality is likely to flow from corporate governance to performance rather than the other way round. Numerous studies also find that more specific governance attributes, such as board structure, are associated with higher firm performance.

Bangladesh is an emerging economy. The stock market of Bangladesh is said to be rebo…

PEST Analysis on Private University Industry of Bangladesh

Private universities of Bangladesh started functioning in 1992. The industry has gone through continuous growth over the period. Many new organizations came forward with new universities. Political, Economic, Social & Technological analysis of the industry is described here.
Political and Legal Environment
Political leaders for their own benefit sometime exploit the students. Public universities’ students are the target group of political leaders. Those universities are so much politicized that for example, exams cannot occur in time. The student cannot pass their exam in time. In this aspect private universities are in much better truly they don’t have any external political influence. This one of main reasons that the students are becoming interested for private university day by day.
Economic Environment
To set up a private university a big amount of money should be deposited to the government fund. And private universities are fully dependent the donor’s donation and the money fro…