Research Journal of Finance and Accounting
Relationship Between Stock Price and Financial Distress: A Study on Banks of Bangladesh
Abstract
The purpose of this study is to empirically test relationship between financial distress and stock price. Financial distress is calculated using Altman Z-score. Data for the study consists of financial information of 29 banks listed in Dhaka Stock Exchange (DSE). Variables in this study are Z-score (independent) and Stock price (dependent). This study analyzes and describes the data associated with these variables and linear regression has been done between them to ascertain the level of and direction of their relationship. The trends of z-score for the study period (2015-2019) have been tested. This study finds there is no significant relationship between the variables. In other words, Z-score is unable to explain the variability in the stock price.
Keywords: Stock price, Financial Distress, Altman Z-Score, Banking Industry
DOI: 10.7176/RJFA/12-11-03
Publication date:June 30th 2021
To list your conference here. Please contact the administrator of this platform.
Paper submission email: RJFA@iiste.org
ISSN (Paper)2222-1697 ISSN (Online)2222-2847
Please add our address "contact@iiste.org" into your email contact list.
This journal follows ISO 9001 management standard and licensed under a Creative Commons Attribution 3.0 License.
Copyright © www.iiste.org