Margin Requirements and Stock Market Volatility in Bangladesh
Journal Title: SDMIMD Journal of Management - Year 2012, Vol 3, Issue 2
Abstract
Officially margin requirements in bourses in Bangladesh were initiated on April 28, 1999, to limit the amount of credit available for the purpose of buying stocks. The goal of this paper is to measure the impact of changing margin requirement on stock returns' volatility in Dhaka Stock Exchange (DSE). The impact of margin requirement on stock price volatility has been extensively studied with mixed and ambiguous results. Using daily stock returns, we found mixed evidence that SEC's margin requirements have significant impact on market volatility in DSE.
Authors and Affiliations
A. F. M. Mainul Ahsan, Mohammad Osman Gani, Md. Bokhtiar Hasan
Keywords
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- EP ID EP573230
- DOI 10.18311/sdmimd/2012/2741
- Views 128
- Downloads 0
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