Kalpo's Blog

I conducted a survey on 2010 for my graduation research. A part of the survey was focused on investors' role in corporate governance in Bangladesh. The investors are directly affected by the corporate governance. They also have responsibilities. Here I have described the survey findings. Investors Attending AGM or EGM It is surprising that only 14% of the respondents attended any AGM or EGM and only 2% ever voted for electing or removing directors. It indicates that most of the investors don’t have interest in performing their roles or responsibilities in corporate governance. Their only motive is earning money. They hardly care about the performance of the companies. Participation in Initial Public Offerings The respondents were assumed to be secondary market participant but 84% of them were found also active in primary market. Not only they use their own BO account for applying in Initial Public Offer (IPO) but also they operates multiple BO accounts in others names. On average e...

As my graduation internship report, I did a research to find out whether the market price of equities is sensitive to corporate governance or not. If the investors rely on fundamental analysis then corporate governance should affect equities’ price. A set of declarations and their impact on equities price were surveyed among a sample of 100 investors. This research didn’t focus on degree of impact of corporate governance on equities price. They survey findings are illustrated below. Trading Experience 51% of the respondents stated that they started investing in stock market less than one year ago. On the other hand 32% started between 1 to 3 year ago and 17% started more than 3 years ago. That shows that last year there was huge interest in investing in stock market. Average Investment Average investment of the respondents is 445,760.50 and mode value is 200,000. These indicate tight portfolio of most of the investors. Tight portfolio is believed to have a more risk propensity as inves...

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 an...