Impact of Inflation on Growth of Net Assets of Listed Companies in Bangladesh: A Study on DS30 Companies

Abstract

This study compared between nominal growth and inflation adjusted growth of net assets of DS30 companies of Bangladesh and it is found that inflation has significant impact on the growth of net assets. When inflation is adjusted to the growth rate of net assets, it is easy to decide whether net assets grow because of performance or inflation. Measuring net asset is important because it is one of the important elements to decide for doing investments. Investors should consider inflation adjusted net asset growth to consider of their investments. To do the study, 30 companies which are considered as DS30 companies in Dhaka Stock Exchange are taken as sample.

Keywords: Inflation, Net asset growth, Bangladesh, Dhaka Stock Exchange.