How will a New Corporate Tax Policy Affect Stock Markets in Bangladesh?

Abstract

Bangladesh stock markets experienced an unsustainable bubble and burst in December 2010. Since then the markets observed a falling turnover and a depressed phase of pricing. Millions of small savers lost their savings and the issue became a public policy debacle for the then government. A reduction in corporate tax rates could mean a major stimulus to corporate investments and future profitability. Its effect on stock market performance will be unambiguous and positive.