TY - JOUR
T1 - Evaluation of stock market technical efficiency with a comparison of groups of companies in Dhaka stock exchange
AU - Hasan, Md Zobaer
AU - Kamil, Anton Abdulbasah
AU - Baten, Md Azizul
N1 - Copyright:
Copyright 2011 Elsevier B.V., All rights reserved.
PY - 2011/10/16
Y1 - 2011/10/16
N2 - The objective of this study was to measure stock market efficiency of the groups of companies, such as Group-A (financial), Group-A (non-financial), Group-B and Group-Z of Dhaka stock exchange (DSE) market in Bangladesh applying the Stochastic Frontier approach, incorporating technical inefficiency effect model. Among the four groups, most efficient group was Group-A (financial) and most inefficient group was Group-Z. This study showed that the mean technical efficiency of the companies of DSE market during the period 2000 to 2008 was 0.8782. This implied that 87% of potential output was being realized by the companies of DSE market. In case of using production function model; it was found that the Translog production function was more preferable than the Cobb-Douglas production function. The technical efficiency rate was found gradually increasing over time in the stock market in Bangladesh.
AB - The objective of this study was to measure stock market efficiency of the groups of companies, such as Group-A (financial), Group-A (non-financial), Group-B and Group-Z of Dhaka stock exchange (DSE) market in Bangladesh applying the Stochastic Frontier approach, incorporating technical inefficiency effect model. Among the four groups, most efficient group was Group-A (financial) and most inefficient group was Group-Z. This study showed that the mean technical efficiency of the companies of DSE market during the period 2000 to 2008 was 0.8782. This implied that 87% of potential output was being realized by the companies of DSE market. In case of using production function model; it was found that the Translog production function was more preferable than the Cobb-Douglas production function. The technical efficiency rate was found gradually increasing over time in the stock market in Bangladesh.
KW - Dhaka stock exchange
KW - Inefficiency effects
KW - Stochastic frontier model
KW - Technical efficiency
UR - http://www.scopus.com/inward/record.url?scp=80355126313&partnerID=8YFLogxK
M3 - Article
AN - SCOPUS:80355126313
SN - 1992-1950
VL - 6
SP - 5857
EP - 5865
JO - International Journal of Physical Sciences
JF - International Journal of Physical Sciences
IS - 24
ER -