“Stock Price Adjustment to Corporate Accounting Disclosure” Quantitative Research by Ghosh & Ghosh

Introduction

The purpose of the article is not formulated explicitly in the introduction but is nevertheless fairly clear. According to the authors, the research is meant to provide insights into the relation between accounting disclosure and the movement of stock prices, which, by extension, would allow better control and stability in the market (Ghosh and Ghosh 123). This outcome is especially desirable for Bangladesh, which is vulnerable to stock price volatility. The background provided in the introduction illustrates the vulnerability and explains the rationale behind the research question by evidencing the possibility of the relation from earlier studies. Therefore, the background is relevant for the research study.

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Literature Review

The literature review is focused on the subject of the relation between a number of independent variables associated with the disclosure of corporate accounting. The review is broad in the sense that it cites a variety of similar studies conducted over a recent 30-year period. The existing literature helps to establish the research hypothesis since the overwhelming majority of findings suggest a positive relationship between any of the given elements of the disclosed information, with the trend being applicable to both developing and developed countries (Ghosh and Ghosh 124). However, the review also identifies the irrational findings in previous research regarding the market in Bangladesh, which suggests a negative relation between the same variables and therefore requires confirmation. The literature review uses an empirical framework to gain an overview of evidence relevant to a specific research question (the link between variables) and tackles a specific empirical question formulated at the end of the review (Sekaran and Bougie 80).

Research Design

The authors do not provide a rationale for choosing a research approach. However, a linear regression analysis is an appropriate method of establishing a link between two quantifiable and statistically significant sets of variables (Weisberg 42). To further ensure the reliability of the results, random effect and fixed-effect models were used to obtain a regression of the involved dependent and independent variables. Since the research involved panel data analysis, the Hausman test was implemented to choose between the random effect and fixed effect model and thus ensure the consistency of the estimator (Baltagi 126). It should be mentioned that neither the instruments nor methods are described in detail, although those the study utilizes are relatively standardized and widely recognized, which eliminates the need for a detailed description. The data collection process, on the other hand, is described in exhaustive detail, primarily due to the fact that it utilizes judgment sampling to ensure uniformity and consistency of the results by eliminating a small fraction of banks that demonstrate inconsistencies in their financial reporting. Neither reliability nor validity was tested or explained in the paper. Limitations of the study were neither identified nor addressed.

Results and Findings

The results of the analysis are directly pertinent to the research question, although the fourth and the sixth models showed insignificant constant values, and only the fifth model demonstrated significant relevance for the study. The analysis of each of the six models is explained in a separate paragraph, and all the findings are summarized in a table to improve clarity.

Discussion

The results of the fifth model, which was found to account for more than 80 percent of stock volatility, were discussed with reference to the research question. According to the authors, the currently prevailing weak form of efficiency in DSE can be addressed with the help of the implications of the positive relationship established by the study. In addition, the study suggests a movement toward a strong form of efficiency in the Bangladeshi stock market, which may be used as insight by involved parties (Ghosh and Ghosh 130).

Conclusion

The conclusion contains suggestions regarding using the results to decrease the volatility of prices and investment risks. However, since the study essentially aims at confirming previous findings and resolving discrepancies, no suggestions were made for further research.

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References

All of the sources used in the study are properly mentioned in the paper and listed in the references in accordance with APA citation style.

Works Cited

Baltagi, Badi. The Oxford Handbook of Panel Data. Oxford University Press, 2014.

Ghosh, Protap Kumar, and Sutap Kumar Ghosh. “Stock Price Adjustment to Corporate Accounting Disclosure: A Quantitative Study on Dhaka Stock Exchange (DSE), Bangladesh.” International Journal of Accounting and Financial Reporting, vol. 5, no. 2, 2015, pp. 122-132.

Sekaran, Uma, and Roger J. Bougie. Research Methods for Business: A Skill Building Approach. John Wiley & Sons, 2016.

Weisberg, Sanford. Applied Linear Regression. John Wiley & Sons, 2005.

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Wooldridge, Jeffrey. Introductory Econometrics: A Modern Approach. Nelson Education, 2015.

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1. YourDissertation. ""Stock Price Adjustment to Corporate Accounting Disclosure" Quantitative Research by Ghosh & Ghosh." December 30, 2021. https://yourdissertation.com/dissertation-examples/stock-price-adjustment-to-corporate-accounting-disclosure-quantitative-research-by-ghosh-and-amp-ghosh/.


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YourDissertation. ""Stock Price Adjustment to Corporate Accounting Disclosure" Quantitative Research by Ghosh & Ghosh." December 30, 2021. https://yourdissertation.com/dissertation-examples/stock-price-adjustment-to-corporate-accounting-disclosure-quantitative-research-by-ghosh-and-amp-ghosh/.

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YourDissertation. 2021. ""Stock Price Adjustment to Corporate Accounting Disclosure" Quantitative Research by Ghosh & Ghosh." December 30, 2021. https://yourdissertation.com/dissertation-examples/stock-price-adjustment-to-corporate-accounting-disclosure-quantitative-research-by-ghosh-and-amp-ghosh/.

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YourDissertation. (2021) '"Stock Price Adjustment to Corporate Accounting Disclosure" Quantitative Research by Ghosh & Ghosh'. 30 December.

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