Abstract

The predominant objective of this research is to ascertain what factors dominant the market share price of selected power generation companies listed on the Dhaka Stock Exchange (DSE), a developing capital market in Bangladesh, and also to analyze the interdependence among market share price, dividends, and retained earnings in a practical sense. The least squares (LS) method was used in this paper to investigate the dynamic relationships between stock price and various financial variables such as cash dividends and retained earnings. Using the statistical software Eviews 10, this paper has found that the explanatory variables dividend and retained earnings both have a cabalistic impact on determining the share price. But their dominance is very negligible in determining the share price of power generation companies traded on the Dhaka Stock Exchange (DSE).

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