Browsing by Author "Burman, Susmita Dev"

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Impact of Debt Capital on Firm’s Performance: A Study on the Textile Companies Listed in Dhaka Stock Exchange Limited (DSE)
(2020-11-17) Alam, Quazi Nur; Alam, Janifar; Burman, Susmita Dev; Hoque, Md Tanvirul
¬The combination of a firm’s long-term debt, specific short-term debt, common equity, preferred equity and retained earnings which are used to finance its overall operations is known as capital structure and it is a vital financial decision as it is directly related to the risk and return of a firm. Inappropriate capital structure can lower the firm’s value as it incurs higher cost of capital while effective capital structure decision can do the opposite. A panel data set of ten years from 2010 to 2019 for the selected textile companies listed in Dhaka stock exchange has been used in this study. ROE and ROA are the dependent variables in the analysis, on the other side short-term debt to total assets and long-term debt to total assets are the proxy variables for debt capital. Age, sales growth is used as the control variables. Descriptive analysis, Correlation analysis, Hausman test and Panel Regression have been conducted to test the hypothesis. This study found that there is significant relationship between debt capital and firm performance. Short- term debt to the total asset is positively related to both profit measure ROE and ROA. In contrast, the other variable long-term debt has a negative association to the both ROE and ROA. The literature on this view also supports these findings as long-term debt costly and increases financial distress for the firms. According to the study result, long-term debt is statistically significant in determining the ROA and ROE
Impact of macroeconomic and bank specific variables on spread of interest rate: a study of listed commercial banks in Bangladesh
(Universe PG, 2020-03) Hoque, Md Tanvir; Alam, Janifar; Burman, Susmita Dev; Alam, Quazi Nur
The Banking system of a country provides the lifeblood to the efficient and effective functioning of an economy. Therefore it is crucial to understand the lending and borrowing rates and hence the spread of interest rates in the banking and financial sector. The Spread of Interest rate is the difference between loan rates and the deposit rates of a bank. High-interest rate reflected in the spread of a high-interest rate will immensely disrupt and cause adverse consequences in the whole economy. Both the spread of interest rate and the interest margin show that the intermediation cost is higher in Bangladesh. High-interest margins in a banking system are indicative of deep-rooted symptoms of inefficiency, absence of competition, non-diversification of income sources, and skewed development of money and capital market in favor of banks’ lending and inflexibility of rate adjustments symmetrically in response to market changes. Moreover, a frequent financial scam in Bangladesh has added more troubles in the money market of Bangladesh. For example, Hallmark scam of almost 4000 crore taka of Sonali Bank, a financial scam of Abdul Mannan, CEO of BIFC, amounted to around 950 crore taka, around 4500 crore taka scam of Janata bank and Agrani bank have made our money market and financial market susceptible to failure. These events have some direct or indirect impacts on interest rates. Hence, I have felt the importance of identifying the determinants of the spread of interest rates. Understanding the determinants of the spread of interest rates would enable us to eliminate such unnecessary costs in financial intermediation, which would be the result in operational and administrative efficiency, resulting in financial viability, stability, and economic growth. Therefore, we need to know the determinants of the spread of interest rates. Hence, I have been motivated to study the determinants of interest rate spread and their extent of impacts on interest rate spread.