Role of the dynamics of political stability in firm performance: Evidence from Bangladesh-Reference-Cited by-同舟云学术

Role of the dynamics of political stability in firm performance: Evidence from Bangladesh

Published:2022 Issue:4 Volume:6 Page:518-536
ISSN:2573-0134
Container-title:Quantitative Finance and Economics
language:
Short-container-title:QFE

Author:

Abdullah Mohammad¹,Chowdhury Mohammad Ashraful Ferdous²,Karmaker Uttam³,Fuszder Md. Habibur Rahman⁴,Shahriar Md. Asif⁴

Affiliation:

1. Faculty of Business and Management, University Sultan Zainal Abidin, Malaysia

2. IRC for Finance and Digital Economy, KFUPM Business School, King Fahd University of Petroleum and Minerals, Dhahran, Saudi Arabia

3. Universal College, Bangladesh

4. Independent University, Bangladesh

Abstract

<abstract> <p>This study examines the role of political stability in a firm's financial performance in Bangladesh. By considering 139 listed companies from the Dhaka Stock Exchange over the period of 2011 to 2020, we applied a dynamic generalized method of moments (GMM), dynamic quantile regression and dynamic threshold regression. The empirical evidence of this study shows a significant positive impact of political stability on Bangladeshi firms' financial performances. Using dynamic quantile regression, we found a positive impact of political stability in the firms' upper and lower quantiles. Additionally, we found the threshold effect of political stability on the firms' performance to have a score of 13.680. This study contributes theoretically and empirically by examining the importance of political stability on financial performance. For the investors, policymakers and other stakeholders, this study provides evidence of a threshold of political stability on a firm's financial performance.</p> </abstract>

Publisher

American Institute of Mathematical Sciences (AIMS)

Subject

Development,Geography, Planning and Development

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