BICM holds 10th research seminar

Bangladesh Institute of Capital Market (BICM) held a research discussion session titled "BISM Research Seminar-10" on Sunday (27 February).

Dr Ibrahim Siraj, assistant professor at the School of Management at Long Island University, presented his key-note paper on "Managerial Ability and Value Relevance of Earnings."

BICM research consultant (part-time) Subarna Barua conducted the seminar presided over by Executive President of the institute Dr Mahmuda Akhter, reads a press release.

Mohammad Salahuddin Chowdhury, assistant professor for finance at the University of Dhaka, and Dr Dewan Rahman, lecturer for finance at the University of Queensland, were present as discussants.

The research presented at the seminar shows how much the capital market is dependent on earnings-to-value equity and how much it is affected by management ability.

The data from the study show that there is a strong positive relationship between management ability and value relevance of earnings, the release added.

Evidence has also been found that weak corporate governance and product market power positively affect the relevance of income standards.

If a company's top management officials are skilled, they can make the company's accounting information more important in its market valuation.

During the discussion, Mohammad Salahuddin Chowdhury remarked that the ability to manage at this time is considered as a competitive advantage and it is essential to protect the interests of the stakeholders.

On the other hand, Dr Dewan Rahman highlighted the need for introducing indicators to determine management capacity, which would be a value addition in current research.

The seminar ended with a Q/A session.

BICM faculty members, officials and other invited guests also attended the seminar.