Stock Price Reaction Following Corporate Press Releases: Evidence from Dhaka Stock Exchange (DSE), Bangladesh

Abstract

This study examines the correlation between corporate press releases and stock prices in the Dhaka Stock Exchange. The authors collected data and used statistical analysis to determine if there was a relationship between press releases and the subsequent movement of stock prices. The results of the study showed that press releases had a significant impact on the stock prices in the exchange. The authors found that positive press releases resulted in an increase in stock prices, while negative press releases led to a decrease in stock prices. Additionally, the effect of press releases on stock prices was more significant for small and medium-sized firms compared to large firms. These findings suggest that press releases are an essential communication tool for firms to communicate with investors and can have a significant impact on their stock prices. This study provides valuable insights into the effects of press releases on stock prices in the Dhaka Stock Exchange. The findings can help firms to better understand the impact of press releases on their stock prices and to make more informed decisions about their communication strategies. It can also help investors to make better-informed decisions about their investment portfolios.