Margin Requirements and Stock Market Volatility in Bangladesh

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Authors

  • A. F. M. Mainul Ahsan
     Department of Economics, School of Business, Independent University, Banglade Sh( IUB), Dhaka ,BD
  • Mohammad Osman Gani
     Department of Economics, School of Business, Independent University, Banglade Sh (IUB), Dhaka ,BD
  • Md. Bokhtiar Hasan
     Development & Information Department, Dhaka Stock Exchange Limited, Dhaka ,IN

DOI:

https://doi.org/10.18311/sdmimd/2012/2741

Keywords:

Margin, Requirements, Volatility, Stock Market.
Marketing and Sales

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.

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Published

2012-09-01

How to Cite

Mainul Ahsan, A. F. M., Gani, M. O., & Bokhtiar Hasan, M. (2012). Margin Requirements and Stock Market Volatility in Bangladesh. SDMIMD Journal of Management, 3(2), 29–42. https://doi.org/10.18311/sdmimd/2012/2741

Issue

Volume 3, Issue 2, September 2012

Section

Articles
Crossref
Scopus
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Europe PMC

 

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