international journal of computer and business
TRANSCRIPT
-
8/6/2019 International Journal of Computer and Business
1/88
-
8/6/2019 International Journal of Computer and Business
2/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
Chief Editor
Professor Dr. Samsul Islam ChowdhuryDepartment of Business and EconomicsUniversity of West Virgina Tech, USA.
Executive Editor
Dr. Mir Mohammad Azad, USA
Editorial Board
Peer selected based on expertise and submitted papers
Published by
International Research Journal of Business and Computer
Printed by
Price:
To be decided
Copyright @2001 by irjcb
http://www.irjcb.org/http://www.irjcb.org/ -
8/6/2019 International Journal of Computer and Business
3/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
Message from the editor
Welcome to International Research Journal of Computer and Business.
It is our pleasure to introduce the new journal. In modern world computer and business are sointegrated like real industry even in academic field, therefore we decided to combine both fieldincluding academician, researchers, industrial expert to share and update the field.
Boards of reviewer are selected based on submitted papers and journal is going to publish monthly.
Chief Editor
IRJCB
http://www.irjcb.org/http://www.irjcb.org/ -
8/6/2019 International Journal of Computer and Business
4/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
Content
Performance of Stock Market of in Developing Country: a case study on Chittagong 5
Stock Exchange (CSE)
Enterprise Resource Planning for Business Improvement 23
Women Entrepreneurship Education in Economic Development 26
Management of Government Banking in The Third World country: a case study 40
on Agricultural Bank-Problems and Remedies
Assessment of Gap of Consumers right in Real Life: An Empirical study 60
Comparative study on Compensation Management Practices of Selected Securities 76
firms in Chittagong Stock Exchange Ltd
http://www.irjcb.org/http://www.irjcb.org/ -
8/6/2019 International Journal of Computer and Business
5/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
Performance of Stock Market of In Developing Country:
an empirical study on Chittagong Stock Exchange (CSE)
Authors:
Mr. Mir Md. Tariqul Alam.
Mr. Abu HanifaNoman Bin Alam
Mr. A.M. Shahabuddin Chowdhury
Abstract:
A strong and well-structured secondary market is the focal point of capital market,which bears paramount magnitude in the economic development of a country. It is not amere coincidence that almost all the developed nations exhibit a strong secondarymarket. It is perceived to act as the medium of transactions between interested parties.This paper focuses on the growth of Bangladesh stock market over time. The markettrends in terms of market capitalization, market liquidity, market concentration, numberof listings, market turnover were considered. The study finds that key indicators are
significantly correlated. The findings of the study suggest that growth of stock market ofBangladesh till not stable. We conclude that Bangladesh stock market is still at an earlystage of its growth and stock market size is small.
[Key words: Stock market, growth, turnover, capitalization.]
Introduction:
Stock market can perform well to meet the
continuous financial needs of business
enterprises, if there exist a congenial
environment for boosting confidence of
bothstock market operators and investors
(Ahmed et al, 1996). The growth and
development ofstock market in a market
economy largely depends upon the creation of
enabling environment for boosting up
investors confidence. By providing liquidity
of shares and diversified instruments the
secondary market contributes in increasing
market capitalization. Investors become moreconfident and exert a positive impact on the
Gross Domestic Product (GDP) of our
country. Neighboring countries such as India
has market capitalization of more than 75% of
their GDP. In contrast Bangladesh capital
market is comparatively lower than India with
54.61% of the GDP. To make the secondary
market effective we should address two
important aspects which act as determinants of
stock market effectiveness. Volatility and
market efficiency are two important features
which will ultimately determine the
effectiveness of the stock market in economic
development (Hassan M K et al., 2000).
http://www.irjcb.org/http://www.irjcb.org/ -
8/6/2019 International Journal of Computer and Business
6/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
Literature review:
Capital market is recognized as a vehicle for
rapid economic development through
mobilization of available resources in a
country (Ahmed S, 2005). Though
industrialization has picked pace in
Bangladesh almost three decades back, capital
market has failed to attract the entrepreneurs
as the key source of capital, which has usually
been occupied by the banking system since
beginning (Islam et al., 2010). That is why
Bangladesh capital market has comparativelylower market capital as percentage of GDP in
the region but now it is increasing. The capital
market in Bangladesh received significant
boost in last year. All share price indexes, turn
over as well as market capitalization,
improved substantially. However, the market
lacks reflection of company fundamentals and
the possibility of price manipulation in the
market through insider trading cannot be ruled
out (Simu T.H, 2009). Investors in Bangladesh
became increasingly interested in equity
markets because many entrepreneurs look for
requirements from the equity markets for
many reasons and DSE & CSE play an
integral role in the pace of industrialization of
the country (Akhter S et al, 2005). Demirguc-
Kunt and Levine (1996), Singh (1997) and
Levine and Zervos (1998) find that stock
market growth plays an important role in
predicating future economic growth in
situations where the stock markets are active.
The proponents of stock markets emphasize
the importance of having a "developed" stock
market in enhancing the efficiency of
investment. A well-functioning stock market is
expected to lead to a lower cost of equity
capital for firms and allow individuals to more
effectively price and hedge risk (Bepari M.K
&Mollik A, 2006). The market capitalization
of emerging market countries has more than
doubled over the past decade growing from
less than $2 trillion in 1995 to about $5 trillion
in 2005 (Yartey, 2008). As a percentage of
world market capitalization, emerging markets
are now more than 12 percent and steadily
growing (Standard and Poor, 2005).Measuring efficiency and performance level of
stock market needs some indicators and this
study used some yardstick to understand
market efficiency and performance.
Objectives of the Study:
The main objective of the study is to identify
the performance and efficiency of stock
market in Bangladesh and the specific
objectives are:
To investigate the pattern ofBangladesh stock market growth
To identify various indicators ofBangladesh stock market growth.
To recommend some guidelines toensure stable market growth
considering the current performance of
the stock market of Bangladesh.
Data and Methodology:
Research methodology of the study was
focused both on qualitative and quantitativestudy. Primary and Secondary both types data
-
8/6/2019 International Journal of Computer and Business
7/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
were used in this study. Secondary data were
collected for the period 2001 to 2010. Data are
collected from various issues of annual report
of Securities and Exchange Commission
(SEC) of Bangladesh, Quarterly Review of
SEC, Monthly Review of Dhaka Stock
Exchange (DSE) and Chittagong Stock
Exchange (CSE), Bangladesh Economic
Review, Statistical Year Book of Bangladesh,
Website of DSE, CSE, and SEC Bangladesh.
Interview techniques were used to collect
primary data through semi structuredquestionnaire. Few executives of CSE,
Investor, and executives of brokerage house of
CSE were interviewed based on convenience
sample method to understand real scenario of
the stock market of Bangladesh.
Descriptive statistics, correlation matrix, and
trend equation of key indicators are used for
the analysis of the collected data.
History of Stock market in Bangladesh:
The stock exchange in Bangladesh was
incorporated in April 1954 as the East Pakistan
Stock Exchange Ltd. However, formal trading
in the Exchange did not commence until 1956.
The Exchange remained suspended from 1971to 1975 due to the liberation war. After
liberation, the Exchange opened up in 1976
with only 9 listed companies. As of June 1999,
the Exchange has 210 listed companies with
230 listed securities and a market
capitalization of 1,046 million US dollars. As
in most other developing countries, the capital
market in Bangladesh has a relatively recent
beginning. It is gradually evolving as an
economic institution in response to the internal
requirements of a fledgling modern economy,
which has emerged as a result of economic
development and industrialization efforts.
Bangladesh is still a predominantly
agricultural economy. However, the
industrialization process over the last three
decades since independence has diversified the
economic base of the country at least to some
degree. The second stock exchange of the
country, the Chittagong Stock Exchange(CSE)
was established in April 1995.In order tocontrol operation of the stock exchanges and
trading of stocks of listed companies, the
government of Bangladesh established the
Securities and Exchange Commission of
Bangladesh on 8th June, 1993 under the
Securities and Exchange Commission Act,
1993 .The mission of the SEC is to protect the
interests of securities investors, develop and
maintain fair, transparent and efficient
securities markets, ensure proper issuance of
securities and compliance with securities laws.
The country's capital market showed a mixed
performance in 2009. Stock prices showed
significant upturn during the first half while
the second half witnessed downward
movement. Different monthly average price
indexes at Dhaka Stock Exchange (DSE) and
Chittagong Stock Exchange (CSE) lost
grounds although the daily average turnover
improved showing some fluctuations in 2008.
Compared with last month of previous year ,
the monthly average of all share price index
(DSI), DSEG, and DSE20 declined by 14.1
percent, 12.1 percent, and 8.3 percent
-
8/6/2019 International Journal of Computer and Business
8/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
respectively in December 2008. These indexes
declined rather sharply during July-December
2008. The liquidity situation of the capital
market improved in 2008 compared with the
previous year. The daily average turnover
stood at Tk. 2.8 billion in 2008 which was Tk.
1.4 billion in 2007. The monthly average
turnover reached to its peak in October 2008
with a daily average of Tk. 4.2 billion and the
lowest was observed in January 2008 with a
daily average of Tk. 1.5 billion.
Secondary Market Scenario:
The highlights of Bangladesh secondary
market is given below. The share price index
in Dhaka Stock Exchange (DSE) shows a
increasing trend with a downfall in the year
2005.
Table-01: Trading Operation in Dhaka Stock Exchange(Amount in million Tk)
Year No. of listed
Securities
IPO Issued
Capital
Market
Capital
Turnover Price
Index
2001 249 11 33,454.3 65,222.8 39,868.3 817.79
2002 260 08 35,203.0 71,262.0 34,984.9 822.34
2003 267 14 46,055.0 97,587.0 19,152.1 967.88
2004 256 02 49,532.0 224,923.0 53,181.1 1,971.31
2005 286 22 70,313.0 233,075.0 64,834.8 1,275.05
2006 310 12 118,437.0 323,368.0 65,069.3 1,321.39
2007 350 14 214,470.0 753,950.0 322,820.1 2,535.96
2008 412 12 372,156.0 1059,530.0 667,964.7 2,309.35
2009 415 18 522,099.0 1887,177.0 1475,300.8 3747.53
2010
(March)
437 06 566,584.0 2275,558.0 687,967.5 5582.33
Source: Bangladesh Economic Review, 2010
The number of securities (including mutual
fund and debentures) listed with the DSE
increased to 437 by March 2010 from 350 of
June 2007. By the march 2010, the issued
capital of listed securities stood at Tk.
566,584.0 million, which is 52.24 percent
higher than that of 2008.
Up to March 2010, market capitalization of
securities stood at Tk. 2275,558.0 million.
General share price index of the DSE stood at
5582.33 in March 2010, which was 2,309.35
in 2008. The number of securities listed with
the CSE reached 226 as in march 2010 from
217 as in 2009. By the march 2010, the issued
capital of listed securities stood at Tk.
177,603.9 million which is 46.05 percent
-
8/6/2019 International Journal of Computer and Business
9/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
higher compared to that at the end of 2008. As
of march 2010, market Capitalization of
securities reached Tk. 1862,988.5 million.
General share price index of the CSE reached
16,193.99 as on March 2010, which
was8,692.75 at end of 2008.
Table -02: Trading Operation in Chittagong Stock Exchange
Year No. of listed
securities
IPO Issued Cap.
(In ml taka)
Market Cap.
(In ml taka)
Turnover
(In ml taka)
Price
Index
2001 177 09 29,652.7 56,363.5 1,479.62 1,836.87
2002 185 09 31,079.9 60,467.7 13,586.1 1,841.14
2003 196 10 41,967.6 85,312.3 6,688.6 1,642.78
2004 198 03 46,978.7 215,010.8 17,551.3 3,597.70
2005 210 16 55,519.3 219,942.8 14,042.7 3,378.68
2006 213 06 69,378.4 270,510.7 15,893.1 3,724.39
2007 227 13 89,173.9 612,580.0 52,590.3 7,657.06
2008 238 12 121,603.2 807,684.0 99,803.7 8,692.75
2009 217 18 155,124.9 1470,807.0 162,562.6 13,181.37
2010 (March) 226 06 177,603.9 1862,988.5 60,737.3 16,193.99
Source: Bangladesh Economic Review, 2010
The billboard below shows the condition of the secondary market during last two quarters of the year
2008.
Table -03: Secondary market Billboard
Dhaka Stock Exchange Chittagong Stock Exchange
As on 30h
June
2009
As on 31st
Dec.
2009
As on 30h
June
2009
As on 31st
Dec.
2009
Total number of listed securities 443 415 245 217
Total issued capital of all listed
companies (in million)
457,94 0 522,099 142,470 155,124.9
Total Market capitalization 1,241,340.0 1887,177 974,950.0 1470,807.0
-
8/6/2019 International Journal of Computer and Business
10/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
(in million)
All Share Price Index2520.20 3747.53 10477.67 13,181.37
Source: (SEC Quarterly report and CSE Portfolio; July-Sep 2009, and Jan -March 2010)
The market billboard shows that the number of
listed securities reached to 415 in DSE and
217 in CSE. Issued Capital at DSE and CSE
amounted tk. 522,099 million and tk.
155,124.9 million respectively. Market
Capitalization reached at tk. 1887,177 million
and tk. 1470,807.0 million at the end of year in
DSE and CSE whereas the price index was3747.53 and 13,181.37
Indicators of Market Growth and Trend of
Market Performance of CSE:Literatures
provide no unique measure of indicators of
stock market development. Broadly used
indicators of stock market growth are market
size in terms of market capitalization,
liquidity of the market, degree of listing,
volatility in the market. In this study weexamine all these above mentioned indicators
to evaluate the growth pattern of Bangladesh
stock market mainly of CSE.
Stock market size:
Table - 04: Stock market size
Year Total Market Capitalization
(in million taka)
GDP (million tk) Market Capitalization
to GDP (%)
2002 131,730 2,732,010 4.82
2003 182,899 3,005,800 6.08
2004 439,934 3,329,730 13.21
2005 453,018 3,707,070 12.22
2006 593,879 4,157,280 14.28
2007 1,366,530 4,724,770 28.92
2008 1,708,765 5,458,220 31.53
2009 3,357,9846,147,950
54.61
Descriptive Statistics of Market capitalization to GDP
Mean 20.71
Standard deviation 16.78
-
8/6/2019 International Journal of Computer and Business
11/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
Market capitalization ratio equals the value of
listed shares divided by GDP. In terms of
economic significance, the assumption behind
market capitalization is that market size is
positively correlated with the ability to
mobilize capital and diversify risk on an
economy wide basis (Agarwal 2001). La
Porter et al. (1997, 1998) used the market
capitalization to GDP ratio as an indicator of
market development.
Above table shows the size of Bangladesh
stock market. Market Capitalization ratio has
increased from 14.28% in 2006 to 54.61% in
2009. Then the stock market experienced a
sudden growth in market capitalization in the
next two years, 28.92% in 2007 and nearly
31.53% in 2008.
Table -05 : Market Capitalization of CSE as a % of GDP
Year
Market Capitalization
(million tk) GDP (million tk)
Market Capitalization
to GDP (%)
2002 60,468 2,732,010 2.15
2003 85,312 3,005,800 2.8
2004 215,011 3,329,730 6.07
2005 220,353 3,707,070 5.61
2006 267,501 4,157,280 6.44
2007 612,479 4,724,770 12.00
2008 807,875 5,458,220 14.80
2009 1,470,807 6,147,950 23.92
2010 2,983,929 6,905,710 43.20
Mean 12.99
SD 13.24
Coefficient of
Skew ness 1.76
Source: Authors calculation from various issues of Bangladesh Economic Review, Statistical Year
Book of Bangladesh, DSE and CSE (main board) and Securities and Exchange Commission (Annual
report and quarterly review).
The CSE market capitalization showed a huge
growth in 2008. The share of CSE marketcapital in the total is also increasing. It has
reached almost half of the total market capital
in the year 2008.
Skew ness 1.30
Minimum 4.82
Maximum 54.61
-
8/6/2019 International Journal of Computer and Business
12/88
Table -06: Market capitalization in CSE, its growth and as a % of total (2002-2008)
Year Market Capitalization
(in million taka)
Growth of Market
Capitalization (%)
CSE MC as % of total
capitalization
2002 60,468 7.28 9.14
2003 85,312 41.09 8.68
2004 215,011 152.03 48.87
2005 220,353 2.48 48.60
2006 267,501 21.40 45.27
2007 613,175 129.22 44.87
2008 807,875 31.75 49.76
2009 1470,807 82.05 43.80
2010 1862,989 102.88 -
Mean 63.35
SD 55.02
Skew ness .51
Source: (CSE Profile, portfolio)
From the table it has been observed that
market capitalization has a tendency to grow
up over the passage of time. The highest
growth in market capitalization was 152.03%
in the year 2004. In the year 2008, the
secondary market experienced a steady rate of
growth.
Chart -01: Market capitalization in CSE
-
8/6/2019 International Journal of Computer and Business
13/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
0
200000
400000
600000
800000
10000001200000
1400000
1600000
1800000
2000000
2002
2003
2004
2005
2006
2007
2008
2009
2010
Year
(inmillio
n)
Mkt. Capitalization
Number of listed companies:
The second indicator of market size is the
number of companies listed. The rationale of
including this measure is that as the number of
listed company increases, available securities
and trading volume also increases. The table
below shows the number of listed companies
in both exchanges.
Table -07: Number of listed companies in DSE and CSE
Source: Bangladesh Economic Review, Chittagong Stock Exchange, Dhaka Stock Exchange and Securities and
Exchange Commission (Annual Report and quarterly review), various issues.
Year Number of Companies listed
Dhaka Stock Exchange Chittagong Stock Exchange
2001 249 177
2002 260 185
2003 267 196
2004 256 198
2005 286 210
2006 310 213
2007 350 227
2008 412 238
2009 415 217
2010
(March)
437 226
-
8/6/2019 International Journal of Computer and Business
14/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
Chart -02: Forecasted listed co. under
CSE
Forecasted Co. of CSE
0
50
100
150
200
250
300
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Year
ListedCo.
Co. Actual
Co. Forecasted
Liquidity:
The ability of the market to buy or sell
securities is termed as liquidity. According to
(Agarwal, R, N, 2000) two measures aregenerally used to measure liquidity. They are
turnover (total value traded) in the stock
market as a ratio of:
(i) GDP; and(ii) Stock market capitalization.
The second measure is also called turnover
ratio. High turnover ratio is associated withlow transaction cost. It also denotes the degree
of activity on a stock market. The turnover
ratio gives the total value of shares traded in
relation to the size of the market.
Turnover to GDP equals total value of shares
traded on the stock market divided by GDP.
The total value traded ratio measures the
organized trading of equities as a share of
national output .The total value traded/GDP
ratio complements the market capitalization
ratio. Together, market capitalization and total
value traded/GDP inform us about market size
and liquidity. Table shows the liquidity
situation of Bangladesh stock market in terms
of total value traded to GDP ratio. The ratio
has increased form an insignificant number
(0.49) in 2002 to 2.64 % in 2009. Mean value
of 0.94 with a standard deviation of 0.88 for
the ratio imply that the increase is not even
smooth; there is a marked fluctuation in the
value traded to GDP ratio over the years.
-
8/6/2019 International Journal of Computer and Business
15/88
Table -08: Turnover and GDP
Year Turnover
(in million taka)
Annual Growth
(%)
As a % of GDP
2002 13,586 -9.17 0.49
2003 6,689 -50.53 0.22
2004 17,551 120.39 0.44
2005 14,043 -5.90 0.37
2006 15,893 18.64 0.39
2007 52,590 216.56 1.11
2008 99,804 92.53 1.86
2009 162,563 66.88 2.64
2010 (March) 60,737 - -
Descriptive Statistics
Mean 56.18 0.94
SD 86.35 0.88
Coefficient of Skewness .78 1.35
Minimum -50.53 0.22
Maximum 216.56 2.64
Source: CSE Portfolio
Turnover to Market capitalization of the CSE
is 22.46 in the year 2002 and decreasing
turnover results is declining ratio up to 2006
and afterwards 2007 turnover to market
capitalization is increasing but rate of
capitalization is higher than rate over turnover
increasing till 2009.
-
8/6/2019 International Journal of Computer and Business
16/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
Table - 09: Market capitalization and Turnover
Year Market
Capitalization(in
million taka)
Turnover
(in million taka)
Ratio of
Turnover to
Market Capitalization
2002 60,468 13,581 22.46
2003 85,312 6,719 7.88
2004 215,011 14,808 6.89
2005 220,353 13,933 6.32
2006 267,501 16,530 6.18
2007 613,175 52,328 8.53
2008 807,875 100,747 12.47
2009 1470,807 162,563 11.05
Mean 10.22
SD 5.43
Coefficient
of Skewness
1.97
Source: CSE Portfolio
-
8/6/2019 International Journal of Computer and Business
17/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
Table -10: Comparative Market Performance of CSE 2004-2010
S.N
.
Category 2004 2005 2006 2007 2008 2009 2010
1 No. of Securities
Listed
198 210 213 227 238 217 225
2. No. of trading days 271 263 231 237 238 244 244
3. No. of securities
traded
185 191 202 217 177 - -
4. Market
Capitalization
In million taka
215,011 220,353 267,501 613,175 807,875 1470807 2983929
5. Total Turnover
Value
In million taka
14,808 13,933 16,530 52,328 100,747 162019 340929
6. Turnover Volume
(shares 000)
332,534 308,901 330,662 652,254 972,811 133878 2129129
7. Average Daily
Turnover
In million taka
54.64 52.98 71.56 221 423.3 664.01 1397.25
8. No. of companies
declared cashdividend
135 161 113 116 92 28 72
9. Indices
CSE All Share Price
Index (CASPI)
CSE 30 Index
CSCX
3,598
3,466
-----
3,379
3,159
2,348
3,724
3,342
2,432
7,657
6,935
4,921
8,692
7,566
5,680
13181
10306
8560
23449
20988
15156
10. Market Cap. To
GDP (%)
6.07 5.61 6.44 12.00 14.91
11. Market P/E ratio 18.65 15.67 14.31 22.83 19.00
12. Turnover ratio (%) 6.87 6.37 6.19 8.53 12.47
13. Dividend Yield (%) 3.23 4.35 4.25 2.00 2.61
-
8/6/2019 International Journal of Computer and Business
18/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
#All Share Price Index is calculated on weighted average method.
Source: Chittagong Stock Exchange Profile & Portfolio Oct- Dec 2010
Market concentration:
It can be measured by looking at the share of
market capitalization accounted for by the large
stocks or large sectors. These large stocks are
seen as the leading 3 to 5 firms in the market
(Maunder et al. 1991). In many economies only
a few companies dominate the stock market
(Bundoo 1999). High concentration is not
desirable as it can adversely affect liquidity, and
it is common to find a negative correlation
between concentration and liquidity. To measure
the degree of market concentration, we compute
the share of market capitalization by largest 5
(Banking, Energy, Textiles & Clothing, Leasing,
and Eng. & Electrical) sectors, turnover by the
largest 4 sectors and by the largest banking
sector.
Table-11: Share of Market Capitalization (%)Banking Other 4 largest sectors Total
2006 52.7 32.53 85.23
2007 56.94 29.68 86.62
2008 43.14 38.15 81.29
2010 33.14 28.95 62.09
Source: Portfolio, Chittagong Stock Exchange
Turnover by the largest 5 sectors decreased from
83.59 % in 2006 to 67.18 % in 2010 whereas,
the turnover by the banking sector decreased
form 46.88 % in 2006 to 19.84% in 2008 and
again increased at 33.56% in 2010. Overall, the
Bangladesh stock market remains highly
concentrated to the banking sector in terms of
market capitalization and turnover but it is
decreasing and spread in different sectors which
is positive for stock market.
Table -12: Market Concentration: turnover by largest 4 sectors and largest sector in the CSE.
Concentration measures 2006 2007 2008 2010
Turn over by the largest 5 sectors (%) 83.59 78.78 72.02 67.18
Turnover by the largest sector (% ) 46.88 50.41 19.84 33.56
Source: Portfolio, Chittagong Stock Exchange
-
8/6/2019 International Journal of Computer and Business
19/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
Index in Stock market performance:
Stock index is a parameter for judging stock
market performance. It reflects the changes in
prices of securities as well as value of securities.
CSE determines three stocks indices-CSE All
Share Price Index, CSE-30 Index, CSCX Index.
Table -13: The quarterly changes in CSE All Share Price Index: 2010
Index Quarter 1 Quarter 2 Quarter 3 Quarter 4
CSE All Share Price Index 16193.99 18116.05 20729.79 23448.99
Growth rate (%) 0.11869 0.14428 0.13117354
Mean 19622.20
SD 3156.59
Range 2719.20
Coefficient of Variation 16.09 %
Maximum 23448.99
Minimum 16193.99
Source: Portfolio, Chittagong Stock Exchange
Table - 14: The changes in CSE-30: 2010
Index Quarter 1 Quarter 2 Quarter 3 Quarter 4
CSE-30 11017.18 14963.63 16602.88 20998.17
Growth Rate (%) 0.35821 0.10955 0.26473058
Mean 15895.47
SD 4131.34
Range 4395.29
Coefficient of Variation 25.99 %
Maximum 20998.17
Minimum 11017.18
-
8/6/2019 International Journal of Computer and Business
20/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
Source: Portfolio, Chittagong Stock Exchange
Table -15: The changes in CSCX: 2010
Index Quarter 1 Quarter 2 Quarter 3 Quarter 4
CSCX 10600.93 11694.38 13335.95 15156.37
Growth Rate (%) 0.10315 0.14037 0.13650471
Mean 12696.9075
SD 1987.923051
Range 1820.42
Coefficient of Variation 15.65674989
Maximum 15156.37
Minimum 10600.93
Source: Portfolio, Chittagong Stock Exchange
From the above table, it has been found that
stock index has changed quarterly at varying
degrees, including ups and downs in share prices
and securities over the periods. The changes in
stock index over the period have increased
consistently.
Analysis and Discussion:
The study on performance of stock market in
Bangladesh conducted on the basis market
capitalization, market liquidity, market
concentration, number of listings, market
turnover and market index for the last 8 years
from 2002 to 2009. On the basis of performance
factors we have found descriptive statistics of
individual factors which are discussed in earlier.
On the other hand we have found combined
effects of different variable on descriptive and
bi-variant
Table -16: Descriptive Statistics
Mean
Std.
Deviation N
Listed Co. 210.5 17.30 8
Turnover 47839.8 55845.58 8
Market
Capitalization 467562.75481111.20
8
-
8/6/2019 International Journal of Computer and Business
21/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
Turnover to
Capitalization10.22 5.43
8
Turnover to GDP .94 .88 8
Table 16&17 reports descriptive statistics and
correlation matrix among key development
indicators of Bangladesh stock market. Market
capitalization ratio is significantly correlated to
turnover, and turnover to GDP. Turnover also
significantly correlated to number of listed
companies, market capitalization, and turnover
to GDP, while turnover to capitalization is
negatively correlated to listed co. and market
capitalization.
Table -17: Correlation matrix among key indicators of stock market development
Listed
Co. Turnover
Market
Capitalization
Turnover to
Capitalization
Turnover
to GDP
Listed Co. Pearson
Correlation1 .858(*) .952(**) -.326 .826(*)
Sig. (2-tailed) .013 .001 .476 .022
Turnover Pearson
Correlation.858(*) 1 .955(**) .120 .995(**)
Sig. (2-tailed) .013 .001 .798 .000
Market
Capitalization
Pearson
Correlation.952(**) .955(**) 1 -.109 .945(**)
Sig. (2-tailed) .001 .001 .816 .001
Turnover to
Capitalization
Pearson
Correlation-.326 .120 -.109 1 .188
Sig. (2-tailed) .476 .798 .816 .686
Turnover to
GDP
Pearson
Correlation.826(*) .995(**) .945(**) .188 1
Sig. (2-tailed) .022 .000 .001 .686
* Correlation is significant at the 0.05 level (2-tailed).
** Correlation is significant at the 0.01 level (2-tailed).
Conclusion & Recommendation:
-
8/6/2019 International Journal of Computer and Business
22/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
From the study of evaluating the growth and
performance of Bangladeshstock market over
the last seven years in terms of some commonly
used indicators of stock market development.
Our analysis reveals that the Bangladeshs stock
market is growing in terms of market
capitalization to GDP, turn over ratio, turnover
to GDP and turnover to capitalization showed
market is not still stable enough. But there is a
chance to develop our stock market stable and
contribute to economic development of the
country. Our stock market is not stable enough
because of the following reasons:
Frequent changes in regulation of stockexchange by SEC
Unusual behavior of the money market; Lack of investment opportunity in the
industrial sectors;
Limited number of stock of Govt.owned company;
Demand of the share is higher than theavailable supply;
Lack of awareness about stock marketbehavior of small investors;
Profit making motives of institutionalinvestors.
Lack of govt. initiative to controlunusual transaction in DSE and CSE
Our stock market will grow overtime but the
stability is the important issues to the govt.,
investor, and different groups who have stake on
the stock market. So the people those are
involved in policy making level have to consider
different factors that may influence to the
performance of the CSE as well as total stock
market of the Bangladesh. Investors have to
have rational decision about investment,
regulation will not frequently changes, govt.
should have proper initiative to control and
ensure stable market growth.
References:
Agarwal(2001), Stock Market Growth an Economic
Growth: Preliminary Evidence from African
Countries,Journal of Sustainable Development in Africa
(JSDA).www.jsd-africa.com
Agarwal, R.N . (2000), Financial integration and stock
markets in developing countries: A study of growth,
volatility and efficiency in the Indian stock market,
Institute of economic Growth, Delhi, India in its series
Institute of Economic Growth, Delhi discussion Papers,
(21).
Ahmed M F, Jahur M S, Uddin MJ (1998), Evaluation of
Stock market performance in Bangladesh- A case study
of Chittagong Stock Exchange, CSE portfolio, (January
March):1.
Ahmed S (2005), Reviving the role of regulators in
Bangladesh Capital market, Pakistan journal of social
science 3(4):549-553.
http://ideas.repec.org/s/ind/iegddp.htmlhttp://ideas.repec.org/s/ind/iegddp.html -
8/6/2019 International Journal of Computer and Business
23/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
Akhter S, Misir A, and Ahmed S (2005), Capital markets
development in Bangladesh the status of DSE, Pakistan
journal of social science, 3(8):1002-1006.
Bepari, M K &Mollik, A. (2008), Bangladesh stock
market growing? Key indicators based assessment,
online publication.
Bundoo, S. K. (1999), The Mauritius Stock Exchange:
An Assessment ,Social Sciences & Humanities and Law
& Management Research Journal, University of
Mauritius, Muritius, 5(1): 12-15
Demirguc-Kunt, A. & Levine, R. (1996), Stock Market
Growth and Financial Intermediaries: stylized Facts,
The World Bank Economic Review, 10 (2):291- 232.
Ripon K A I (2007), Stock market of Bangladesh, The
financial express, (June 18):7.
Hassan M K, Islam A M, Basher S A
(2000), Market efficiency, time varying volatility and
equity returns in Bangladesh stock market.
Islam, M.A. Ali, R. and Ahmad, Z. (2010),
Underpricing of IPOs: The Case of Bangladesh, Global
Economy and Finance Journal Vol. 3 No. 1 March2010,
Pp. 44-61.
Levine R. and Zervos S. (1998), Stock markets, bank,
and economic growth, AmericanEconomic Review,
(June):537-558.
Maunder, P., Myers, D., Wall, N. & Miller, R. (1991),
Economics Explained, 2nd edition, London:
HarperCollins.
Porter, L., Lopez-de-Silanes, R., Shlieifer, F. A.
&Vishny, R.W. (1997), Legal Determinants of External
Finance ",Journal of Finance, 54(1): 471 517.
Simu T H (2009), Reasons behind fluctuations of Stock
market in Bangladesh: A study on CSE, Unpublished
Master thesis, Department of Business Administration,
Shahjalal University Science and Technology, Sylhet-
3114.Singh A. (1997). Financial Liberalization, Stock
Markets and Economic Development, Economic
Journal,107(1):771-782.
Standard and poor (2005), Global Stock Market Fact
book 2005,New York: Standard and Poor.
Yartey, C. A. (2008), The Determinants of Stock Market
Development in Emerging Economies: Is South Africa
Different?,IMF working paper, WP 08/32.
Reports review:
Bangladesh Economic Review, various issues (2006,
2007, 2008, 2009, 2010)
Security exchange commission Annual reports, various
issues (2008-2009)
Security exchange commission Quarterly reports, various
issues (2008-2009)
DSE portfolio, various issues (2002-2010)
CSE Bazaar Paricroma, various issues (2002-2010)
CSE portfolio, various issues (2002-2010)
CSE profile, various issues (2002-2010)
-
8/6/2019 International Journal of Computer and Business
24/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
Enterprise Resource Planning for Competitive Business
World
Author:
Asadul Alam
Abstract:
Today large companies use different kind of ERP package to support their business needs.Some of these packages can be used out of box or customized. The types of ERP packagesavailable in the market include Oracle, SAP, and People Soft etc. These are implemented at
different part of organization such as Finance, Human Resource, Material Management anddifferent type industry such as oil, gas, defense, financial etc. By studying differentliteratures and case studies we tried to figure out the pros and cons
of the enterprise resource planning Software.
.
Introduction:
There are many literature review and case study on
different journal. We chose one from each category
to figure out the ERP impact on the business.
Literature Review and Case Study:
Software is expected to reduce cost and increase
firm performance. This is observed (3, 4)
through the data of COMPUSTAT
implementation of ERP system. (8-11)
ERP offers two type of benefits-tangible and (4)
intangible benefit according to the study.
Tangible enefits include significant inventory
and personal reduction, production and order
management improvement, financial close cycle,
technology and procure management reduction.
Intangible benefits according to the study are
-
8/6/2019 International Journal of Computer and Business
25/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
visibility, new or improved process, customer
responsiveness, cost reduction, integration, and
standardization. But some firm (5-7) states (5-7)
high cost of implementation, best practice
inabilities to suite all companies needs, ERP
poses technical command and control
perspective inappropriate to some situation.
ERP particularly on economic part reduce
agency cost by bonding and monitoring cost,
decision information cost by information
processing, documentation, communication,
opportunities cost due to communication. It also
reduces external communication and operational
cost.
Firm data collected and analyzed using
COMPUSTAT indicate result before and after
(3, 4) ERP implementation by ratio of cost to
revenue there is no significant change except
employee reduction and it automate the process.
Another case study shows ERP brings panoptic
control of management over the organization but
on the other hand it empower employee which
management resisted. Both qualititative and
quantities research methodology used in the
research including a case study on hospitalworker of Singapore.
These groups finds using qualititative
methodology and quantatives methodology that
it creates more system tracking capability,
Management visibility, Peer visibility through
work flow dependency and data
interdependency. It also creates process oriented
job expansion, extended access to information,
enhanced user flexibility and reduced validation
check.
In conclusion it is mention that to be adjustable
to the organization it has to appropriate and
formally translated up to the organization.
Approach has certain standard steps to
implement ERP system according to this case
study. First of all according to the study, we
have to create business case, and then create a
budget. Sequentially we have to create
requirement documents and short list of solution
or product available in the market.
Finally we have to see the demonstration from
different vendor and call for request of proposal.The main factors we have to look in ROP are
shortest return of investment, vendor
availability, implementation partner and
references. Considering the above we have to
negotiate the contract. These are the standard
ways to select and plan the ERP system for the
organization.
CONCLUSION:
Though there is controversy about SAP
implementation benefit 70% of fortune 1000
companies already installed within the year
-
8/6/2019 International Journal of Computer and Business
26/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
2000.This project first try to stress about both
financial and organization benefits in term of
cost. Finally it on the process of most used ERP
software functional implementation with
planning phase where detail blue print and
implementation will be done on the phase.
Sample deliverable also provided with the
documentation to have sound understanding of
the project.
References:
Poston, R., Grab ski, S.,In impact of Enterprise
Resource System Planning on firm performance
International Conference on Information Systems,2000
Sia, S,K., Tang,M.,Soh,C., Boh,W,F.,Enterprise
Resource Planning (ERP) as a technology of power
or panoptic control, SIGMIS Database, 2002
Gurbaxani, V., and Whang, S. The Impact of
Information Systems on Organizations and Markets,
Communications of the ACM (34:1), 1991, pp. 59-
73.
Malone, T., Yates, F., and Benjamin, R. Electronic
Markets and Electronic Hierarchies,
Communications of the ACM (6), 1987, pp. 485-497.
Davenport, T. H. Mission CriticalRealizing the
Promise of Enterprise Systems, Boston: Harvard
Business School Press, 2000.Fryer, B. The ROI
Challenge, CFO, September 1999, pp. 85-90.
Knorr, E. ERPs Rough Waters, Upside, December
1999, pp. 209-213.
Arnold, V., Hunton, J., and Sutton, S. On the Death
and Dying of Originality in the Workplace: A Critical
View of Enterprise Resource Planning Systems
Impact on Workers and the Work Environment,
Working Paper, University of South Florida, 2000.
Harris, S. E., and Katz, J. L. OrganizationalPerformance and Information Technology Intensity
in the Insurance Industry, Organization Science
(2:3), 1991, pp. 263-295.
Simon, H. A. A Behavioral Model of Rational
Choice, Quarterly Journal of Economics (69),
February 1955, pp. 99-118.
Zmud, R. W., and Apple, L. E. Measuring
Technology Incorporation/Infusion, The Journal Of
Product Innovation Management (9:2), 1992, pp.
148-156.
Cash, J. I., and Konsynski, B. IS Redraws
Competitive Boundaries, Harvard Business Review
(64:2), 1985, pp. 134-142. Coase, R. H. The Nature
of the Firm, Economica(4), 1937, pp. 386-405.
http://www.ezproxy.dsu.edu:2053/author_page.cfm?id=81100137654&coll=ACM&dl=ACM&CFID=14564779&CFTOKEN=23477084http://www.ezproxy.dsu.edu:2053/author_page.cfm?id=81100640513&coll=ACM&dl=ACM&CFID=14564779&CFTOKEN=23477084http://www.ezproxy.dsu.edu:2053/author_page.cfm?id=81100202157&coll=ACM&dl=ACM&CFID=14564779&CFTOKEN=23477084http://www.ezproxy.dsu.edu:2053/author_page.cfm?id=81324488125&coll=ACM&dl=ACM&CFID=14564779&CFTOKEN=23477084http://www.ezproxy.dsu.edu:2053/author_page.cfm?id=81324488125&coll=ACM&dl=ACM&CFID=14564779&CFTOKEN=23477084http://www.ezproxy.dsu.edu:2053/author_page.cfm?id=81100202157&coll=ACM&dl=ACM&CFID=14564779&CFTOKEN=23477084http://www.ezproxy.dsu.edu:2053/author_page.cfm?id=81100640513&coll=ACM&dl=ACM&CFID=14564779&CFTOKEN=23477084http://www.ezproxy.dsu.edu:2053/author_page.cfm?id=81100137654&coll=ACM&dl=ACM&CFID=14564779&CFTOKEN=23477084 -
8/6/2019 International Journal of Computer and Business
27/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
Women Entrepreneurship Education in Economic
Development
Author:
MAIMUNA MUSARRAT
Abstract
Women Entrepreneurship is an emerging issue that has gained much momentum in recent
years. Even in developing South Asian countries like Bangladesh, women entrepreneurs are
playing an important role in the economic development of their respective nations.
However, there has been little research conducted on women entrepreneurs, and thus there
is a lack of accurate data from most perspectives on this issue. It is generally assumed that
education is an important factor behind developing entrepreneurship. However, to what
extent this statement is true, is subject to thorough investigation. Added to this, arises the
question of the necessity of any special education need for potential entrepreneurs. These
are the major problems that acted as the background of this study. Thus, this report also
focuses on the major issues related with entrepreneurship, education and tries to create a
bridge between the two.Asian University for Women (AUW) is a unique university targeted
to produce next generation women leaders. Located in Chittagong, it has a blend of students
-
8/6/2019 International Journal of Computer and Business
28/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
from diverse backgrounds from all over South Asia.
Introduction:
Women are comparatively less involve business
Entrepreneurship. We tried to figure out how this
can improve with the help of formal and
entrepreneurship education in developing.
Objectives of the study:
This research was mainly based on the following
objectives:
To present a picture of the overallsituation of women entrepreneurship in
South Asian regions.
To evaluate the significance ofeducation as a factor behind developing
entrepreneurial capabilities
To find out the importance andprospects of entrepreneurship education
in this region To introduce the readers with AUW and
provide suggestions on how AUW can
integrate entrepreneurship education as
part of its curriculum
Methodology:
The data for conducting the study has beencollected from primary sources as well as
secondary sources. During the three-month
internship period, it was possible to meet various
successful women entrepreneur who visited
AUW on various occasions. The students also
were surveyed for information related to
entrepreneurship. Primary data was collected by
administering written questionnaire, as well asconducting oral interview. Secondary
information has been collected from various
articles, mostly from online sources. Different
statistical methods were used to organize the
data collected, such as charts, graphs etc.
Scope of the study:
This study reports the results of study conducted
among various women entrepreneurs, mainly
based in Chittagong, on their opinion about
education and its significance in developing
entrepreneurial capabilities. This report also tries
-
8/6/2019 International Journal of Computer and Business
29/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
to reveal the importance of entrepreneurship
education and its scope as a distinct subject in
the tertiary level of education, focusing mainly
on Asian University for Women.
Limitations of the study:
Though the staff and employees, as well as the
respondents from Asian University for Women
were most helpful and provided me with any and
every data I needed, it is still necessary to
inform that there remains many limitations ofthe study:
It must be mentioned that conductingsuch research with proper emphasis in
all necessary fields requires much more
time than the three-month period of
internship duration. Time constraint was
a major limitation.
The organization is still at its developingstage; so, much of the information
regarding the organization is yet to be
available. Moreover, the internship
experience in this organization covered
many other diverse areas, providing less
time and scope for thorough research.
The students were available after mid-April, and thus there was very little time
to collect info from the students.
Data collection was not that easy as previously thought. There is very little
information available regarding women
entrepreneurs, and moreover, these are
not availed to all. Besides, it was not
possible to get women entrepreneurs at
one place and collect information. Thus
most of the information was collected
from scattered sources.
Women Entrepreneurship in South Asia
Region: The following figure show womenemployers in developing countries:
Table 1: Employment status percentage of women and men who are employers
Country Male Female
Bangladesh (1995-96) 0.4 0.1
Nepal (1991) 0.7 0.4
Pakistan (2001-02) 0.9 0.3
Sri Lanka (1998) 2.5 0.8
Maldives (2000) 4.5 1.1
-
8/6/2019 International Journal of Computer and Business
30/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
Sources: Bangladesh Bureau of Statistics, 1996; Central Bureau of Statistics, Population Census of Nepal,
1991; Federal Bureau of Statistics, Pakistan, 2001-02; Government of Sri Lanka, 1998; and Population
and Housing Census, Maldives, 2000.
From the above, it can be noted that although
statistics are lacking, the number of women
entrepreneurs either in absolute or relative terms
have not reached the critical mass necessary to
make an impact on the system.
The subtle manifestation of the gender
phenomenon is often reflected in the size of thebusiness, product line, growth, composition and
management, which can be seen from the profile
of women entrepreneurs described in the next
section. A typical woman entrepreneurs
enterprise is very small, in traditional
manufacturing activities, with low turnovers, a
low number of employees and no professional
assistancei.
Significance of Education:
However, not much has been done to link
education, particularly General Education, with
Entrepreneurship. Whatever data available, is
only based on the ENTREPRENEURSHIP
EDUCATION, which is a distinct field of
education, focusing on educating potential
entrepreneurs only.
However, we have tried to gather some primary
data through interviewing students, prospective
and established women entrepreneurs. Thus we
tried to create the link, focusing solely on
women entrepreneurship, and general academic
education. Different questionnaires (provided at
the Appendix) were developed and distributed
among entrepreneurs of different level and
students of AUW and other universities of
Chittagong. Thus they shared their ideas, which
helped us create the link.
-
8/6/2019 International Journal of Computer and Business
31/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
Findings:
We conducted our research on different categories of people:
Category Sample Size Response (Percentage)
Students of Graduate studies 30 100%
Entrepreneurs 25 98%
From our research conducted onundergraduate students, we found that:
53% of the students at tertiary level ofeducation wish to become entrepreneurs,
while the remaining 47% prefer job to
entrepreneurship.
Of these, 62% are confident about starting their
enterprise with the level of education they have
so far received.
67% of the students absolutely agreedwith the statement education is
required to become an entrepreneur,
while 33% fairly agreed with this
statement. However, no one disagreed,
or even showed their neutral position
about agreement on this statement.
-
8/6/2019 International Journal of Computer and Business
32/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
-
8/6/2019 International Journal of Computer and Business
33/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
77% students think that they wouldrequire training before becoming
entrepreneur, while the other 23% think
they would not.
Those with less education face moreproblems in entrepreneurship than those
with higher education- level of
agreement of students with this
statement, and corresponding percentage
is as following:
o Absolutely 43%o Fairly Agree 47%
o Neutral 10%
o Disagree/Highly disagree 0%
1. From our research conducted onentrepreneurs, we found that:
83% of the interviewed womenentrepreneurs think that lack of
education is a significant barrier behind
developing entrepreneurship. The
remaining 17% think otherwise, stating
that other skills can still compensate foreducation.
Considering academic background ofEntrepreneurs:
o 44% of the entrepreneurs hadcompleted up to HigherSecondary or below
o 22% of the entrepreneurs weregraduate
-
8/6/2019 International Journal of Computer and Business
34/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
o 33% of the entrepreneurs were
post-graduates.
Of the women entrepreneurs
interviewed, 43% received training to
some degree, while the remaining 57%
did not.
57% of the entrepreneurs interviewedthink that education is required for
-
8/6/2019 International Journal of Computer and Business
35/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
entrepreneurship development. 14%
think it is not, while the remaining 29%
think that education is not a
requirement, but a plus-point, for
entrepreneurship development
Those with less education face moreproblems in entrepreneurship than those
with higher education- level of
agreement of entrepreneurs with this
statement, and corresponding percentage
is as following:
o Absolutely 42%o Fairly Agree 33%o Neutral 25%o Disagree/Highly Disagree 0%
-
8/6/2019 International Journal of Computer and Business
36/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
28
Analysis:
Before conducting this study, we assumed that
those with higher academic degrees are more
UNLIKELY to become entrepreneurs, as it may
not pay them back as much as they could earn
from their jobs. People in this region are generally
known to be risk-averse, and so they would go for
more certain ways of earning.
However, our findings showed somewhat
different results:
People with tertiary education are equallylikely to become entrepreneurs, although
they do have good alternative job
opportunities.
The reasons behind this include:o Control over time: Most job
positions require a huge amount
of time to be spent at the office.
However, owning their own
enterprise provides the
entrepreneurs the opportunity to
have control over their own time,
and thus allowing them to
manage their time efficiently
between family responsibilities,
as well as economic activities
o Self-dependence: The mainpurpose of education is liberation.
Most educated people are liberal
minded and thus they do not will
to be dependent on others for
their earnings.
o Expression of creativity: Someentrepreneurs/students added that
they wished/wish to express theircreativity through
entrepreneurship.
o Shrinking job opportunities:Some students are concerned that
with the rising number of
educational institutes, and thereby
graduates, most of the job sectors
are becoming competitive. Thus,a suitable job placement might
not be available for them, leaving
entrepreneurship as the best
alternative.
o Community service: Studentsfrom different parts of the world
expressed their intention to serve
their community, especiallywomen. Becoming a successful
women entrepreneur and
providing job opportunities for
capable women would enable
them to do so.
o Control over environment: Somestudents expressed their concern
that a possible job opportunitymight not provide them with a
congenial environment. Being
women was a reason they
showed, while another reason was
the religion they practice. Thus,
in their eyes, being an
entrepreneur is a better
alternative.
-
8/6/2019 International Journal of Computer and Business
37/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
29
Students from different majors, even otherthan those related with Business Studies
(e.g. Environmental Studies, English
Language and Literature, IT, Education,
etc), are equally willing to become
entrepreneurs.
Most students, even those withbackground of studying Business to some
degree, think they require additional
training and/or education, to gain more
insight into entrepreneurship.
Most people agreed that higher educationopens up more avenues towards success
in entrepreneurship. That is another
reason educated people are still willing to
become entrepreneurs.
Suggested subjects that would-beentrepreneurs should be taught include:
o Basic Accountingo Principles of Marketingo Entrepreneurship Developmento Business law and government
policies
o Social studies and CommunityStudies
o Supply Chain Managemento Consumer Behavior/Psychologyo Human Resource Managemento Organizational Behavioro Strategic Managemento Business Communicationo International Relationso Communicative Englisho Computer and Internet LiteracyBesides these, most entrepreneurs
emphasized that entrepreneurs and
potential entrepreneurs should be
always kept abreast with the changing
global environment.
From the above study, we have tried to create a
link between education and entrepreneurship,
keeping women as the main focus. Our study
shows that though experience does count,
education is still an important factor behind
entrepreneurship. Entrepreneurs with high
academic background tend to come up with more
innovative ideas and thus enjoy a higher rate of
success. What was interesting to find is the fact
that job is not the main priority for most educated
women. Women these days are equally (in some
cases, more) interested in developing
entrepreneurship, than ever before.
So far, our discussion has been based on general
education. Although the concept of
Entrepreneurship Education is yet to be
introduced in this region, we believe, in the
changing socio-economic scenario it has good
prospects. Our intention is to show how
Entrepreneurship Education can be an important
field of education. The following chapter is thus
dedicated to this topic.
Benefit of E. Education:
Education as an aiding factor for developing
entrepreneurship:
Entrepreneurship education provides the
knowledge and skills in areas such as marketing,
organizational behavior, etc. that enable the
entrepreneurs to be more successful. Though
-
8/6/2019 International Journal of Computer and Business
38/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
30
experience is an important tool, education cannot
be denied as a wholeii:
Education may show you how to avoidpitfalls
Although there is no need to claim that a
major in entrepreneurship will definitely turn
into a successful entrepreneur, learning how
to write a realistic business plan, seeing how
venture capitalists actually operate and just
observing successful entrepreneurs in action
may at least show the students ofentrepreneurial education some of the pitfalls
and how to avoid them.
Entrepreneurial education does seem tohave a definite cash return
But in any case, entrepreneurial education
does seem to have definite cash return on
investment. Academics from the University of
Arizona carried out a survey for the Kauffman
Foundation tracking the career progression of
graduates of entrepreneurial programs.
Admittedly, this covered the period 1985-
1999, an epoch marked, especially towards
the end, by some irrational entrepreneurial
and VC behavior. Even so, they found thatcompared to other alumni students of
entrepreneurship courses tended to make more
money and their firms to grow more rapidly.
They were also more likely to work for high-
tech companies and to be instrumental in new-
product development.
The study found that after controlling for
personal and environmental factors,
entrepreneurship education increased the
probability of being involved in a new
business venture by 25 per cent
Three times more likely to be self-employed
It also found the students of entrepreneurial
education were three times more likely to be
self-employed, more likely to be employed
full time, and less likely to work for
government or non-profit entities, and to have
annual incomes 27 per cent higher and own
62 per cent more assets.
Income of the graduates higherControlling for personal characteristics,
entrepreneurship education increases the
income of graduates by $12,654, the studys
authors deduced. Controlling for individual
characteristics, entrepreneurship graduates
working for large firms earned about $23,500
more than their counterparts. So, even though
entrepreneurship education will not
necessarily make a graduate another Bill
Gates, maybe that entrepreneurial course
may be useful in the long term. With
entrepreneurship education, they know more,
others (like bankers, investors, corporate
customers, etc.) know what these student
entrepreneurs are likely to know, and the
entrepreneurs', their firms, and national
-
8/6/2019 International Journal of Computer and Business
39/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
31
economy are better off for their taking the
time to learn how to do it right.
This study indicates that entrepreneurial education
is important in many ways to create successful
entrepreneurs and also to keep them running on
profit.
Recommendations for Asian University for
Women
Activities already undertaken by AUW:
The Student Affairs Department of Access
Academy of Asian University for Women have
already conducted various programs for
incorporating leadership skills and entrepreneurial
capabilities among its students:Guest Speakers:
Renowned guest speakers from all over the world
have been invited to speak on various topics that
would benefit the students. So far, topics such as
Empowerment of Women through
Entrepreneurship Development and
Leadership: The four pillars of leadership
have already been discussed by nationally and
internationally acclaimed speakers.
Workshops: Access Academy hasalready been conducting workshops
where students had the chance to interact
with renowned presenters. Such a
workshop was conducted on Career
Counseling where students got a chanceto create awareness about choosing their
right career.
Networking: AUW has strong networkwith other organizations. Chittagong
Women Chamber of Commerce and
Industries is such an organization, where
students
were invited to visit and have directinteraction with established entrepreneurs.
Extra Curricular Clubs: Student AffairsDivision has already formed different
clubs where it is mandatory for students
to participate (at least 1 and at best 2).
There are clubs of diverse interest groups,
including business club where students
can interact about their ideas on forming a
new venture.
Student Government: Students ofAccess Academy of Asian University for
Women also formed Students
Government through direct election
among students. The purpose of this
election is to create a structured and
systematic channel for respectful, honest,
and open communication between the
student body and the Access Academys
administration. It is also expected that
student government will give students a
direct role in educational and social
opportunities, incorporating leadership
qualities among them.
Conclusion:
Entrepreneurship is a trend in the recent days for
women all over the world. Women of the
developing countries of South Asia are also
keeping in pace with this trend. The general
impression that educated women are not potential
-
8/6/2019 International Journal of Computer and Business
40/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
32
entrepreneurs, is changing. More educated women
are being involved in entrepreneurship in the
recent days. Education cannot be denied as a
significant factor behind entrepreneurship.
General education provides the confidence and the
innovativeness for becoming an entrepreneur.
However, entrepreneurs would be more efficient
and succeed at a higher rate, if provided with
education focused on entrepreneurship.
Entrepreneurship Education is a growing trend
worldwide as a distinct field of education. Yet to
be introduced with an equal emphasis in South
Asia, it can be a highly potential field of study.
AUW, being a unique university can be the
pioneer in introducing and promoting
Entrepreneurship Education.
References:
www.asian-university.org
http://en.wikipedia.org/wiki/Entrepreneurship
http://siteresources.worldbank.org/PGLP/Resources/En
trepreneurship_Oct17.doc
Understanding entrepreneurship: Developing indicators
for international comparisons and assessments,
OECED, STD/CSTAT, 2006
The Global Entrepreneurship Monitor (GEM) 2006
Report on Women and Entrepreneurship, Babson
College, and London Business School, 2007
OECD, Enhancing Womens Market Access and
Promoting Pro-poor Growth, Promoting Pro-Poor
Growth, Private Sector Development, Chapter 5, 2006.
DEVELOPING WOMEN ENTREPRENEURS IN
SOUTH ASIA: ISSUES, INITIATIVES AND
EXPERIENCES by ShaliniSinha
Trade and Investment Division, UNESCAP, Bangkok,
Thailand
Copyright UNESCAP 2005
Ibid.
Ibid
Ibid.
Ibid.
Ibid.
http://www.123eng.com/forum/viewtopic.php?p=1830
4
State of World Population 2005: Journalists Press Kit
[http://www.unfpa.org/swp/2005/presskit/factsheets/fac
ts_gender.htm]
http://en.wikipedia.org/wiki/Entrepreneurship_educatio
n
Economist Intelligence Unit 2007. "Can business schools create entrepreneurs?"
Which MBA, 17/04/2007
[http://www.ictseminar.org/Netgrowth/ICTWorkshop/]
Ibid.
http://www.ediindia.org/
Ibid.
http://www.emiindia.org/
http://www.safeer.info/index1.html
http://www.safeer.info/index1.html -
8/6/2019 International Journal of Computer and Business
41/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
33
Management of Government Banking in The Third World
country: a case study on Agricultural Bank-Problems and
Remedies
Authors:
Dr. Md. Nurul Alam
Dr. Zahrurl Alam
Mrs. Sharmeen Ahmed
Abstract
Bangladesh Krishi Bank (BKB) consistently has pursued the policy of expansion and growth of
branches. But it is advocated that its performance is not highly satisfactory. There might be
many reasons behind it. Among them, the problems involved in management might be a major
one which needs to be identified. This paper aims at identifying the problems involved in
management at operative level of the BKB. The study reveals that BKBs performances is
plainly satisfactory but it is facing a lot of problems relating to management which are overdue
loan, lack of investment opportunity, lengthy and cumbersome procedure in obtaining loan,
competition with the non-government organizations (NGOs),lack of proper borrower selection,
in- adequate legal authority in taking action against the defaulters, lack of co-operation from
government officials, lack of supervision, economic crisis of the borrowers, loan remission
culture, shortage of manpower, undue local political pressure and interference, lack of good
communication, illegal interference by the superior officer and lack of cash holding capacity,
etc. To improve the present performance of the BKB problems mentioned above should be
removed and in this regard suggested recommendations may be accepted and implemented.
1.1 Introduction:
-
8/6/2019 International Journal of Computer and Business
42/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
34
Agriculture is the main stay of Bangladesh
economy. About 20.80 percent of Gross Domestic
Product (GDP) comes from agriculture and agro
related industries (Bangladesh Bank Annual
Report 2008-09, p. 195). More than 80percent of
the total population of Bangladesh lives in the
villages (Population Censes 1991) and a vast
majority of them depend directly on agriculture
and related activities for their livelihood. Besides,
about 48.1 percent of the total labor forces of the
country are engaged in agriculture (Bangladesh
Economic Review, 2008, p. 83). These facts
clearly emphasize the importance of agricultural
sector in the economy of the country. But so far
this important sector has been suffering from
dearth of capacity both for development and for
inputs. With the introduction of seed based
technology in agriculture that requires more and
more purchased inputs, the need for credit
becomes more acute. But only about 25 percent of
the requirement is being supplied by the
institutional sources of credit (The Two Year Plan
1978-80, p.146). The vast majority of the farmers
need credit to purchase agricultural inputs such as
seeds, fertilizer, insecticides and irrigation and
agricultural equipment. They need credit for
payment of wages also. The transfer of traditional
agriculture into modern high productive
agriculture increases the requirement of credit
(The First Five Year Plan 173-78, p.169). The
introduction of modern methods of agriculture has
greatly increased the demand for credit.
Responding to the increasing demand for credit, in
addition to the credit disbursed by the Bangladesh
Krishi Bank (BKB) and the Bangladesh Samabaya
Bank Ltd. (BSBL), the Government of
Bangladesh launched a special agricultural credit
program in 1977 with a national target to disburse
taka 100 crore. In addition to BKB, six
Nationalized Commercial Banks (NCBs)
participated in the program.
At present, the main sources of credit in
agriculture are four State owned Commercial
Banks (SCBs previous name NCBs) namely
Sonali, Janata, Agrani and Rupali Bank, two
specialized banks namely Bangladesh Krishi Bank
and RajshahiKrishiUnnyan Bank (RKUB),
Bangladesh Samabaya Bank Ltd. (BSBL), and
Bangladesh Rural Development Board (BRDB).
BKB have the largest share in annual
disbursement of agricultural and rural credit. In
FY 2009 BKB alone disbursed around 51.86% of
the total disbursement ofagricultural credit
(Bangladesh Bank Annual Report 2009-10).
Amongst the institutional sources mentioned
above ,BKBs overall importance in the financial
sector can be understood by the fact that it covers
about 60% of the total institutional loans extended
to agriculture and related activities of the country
( GOB & The Would Bank 1983). Moreover,
BKB plays an important role in mobilization of
the countrys scattered savings and in creating
employment opportunities for the unemployed
people of the country.
But it is advocated that the performance of the
BKB is not highly satisfactory. The amount of its
overdue loans is gradually increasing. There
might be many causes contributing to this
performance of the BKB. Among these, problems
of management might be a major one. Many
researches have been done on financial
institutions covering performance, profitability
-
8/6/2019 International Journal of Computer and Business
43/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
35
and productivity. But there is a dearth of research
attempting to interpret the problems of
management. This gap of research stimulated the
authors to undertake a study to know the problems
of management of the BKB, more especially the
problems of its operative level. It is expected that
the findings of the study may help the concerned
policy- makers to look into the aspect in its real
perspective.
1.2 Objectives of the Study
The main objective of the present study is toidentify the problems involved in management at
operative level of the BKB. The specific
objectives of the study are:
i) To show the management pattern of the BKB;
ii) To review the business scenario of the BKB;
iii) To identify the problems involved in
management at operation level of the BKB;
and
iv) To suggest some remedial actions to overcome
the same.
1.3 Methodology of the Study
The study is based upon the information collected
from both primary and secondary sources. The
data collected from secondary sources were
required to fulfill the objectives of management
pattern and business scenario of the BKB. The
secondary data were collected by way of
consulting various documents such as BKB Order
1973, Bangladesh Bank (BB) annual reports of the
BKB, Annual reports and annual consolidated
statements of deposits, statement of loan
disbursement, statement of loan recovery and
overdue loans prepared by BKB Chittagong
Divisional Office. For the remaining objectives,
data were collected from a carefully designed
sample survey. For this purpose, first of all the
BKB branches operating in Chittagong district
were divided into three categories viz. higher,
medium and lower disbursement categories
according to the amount of loan disbursement
during the FY 2008-2009. Then it was planned to
select a few BKB branches in the equal
representation from all the categories having
locational advantage for easy contact with the
people. On the basis of these criteria, nineteen
BKB branches comprising nearly 30% of the total
branches located in Chittagong district was
purposively selected. After selecting the branches,
nineteen managers, nineteen second officers and
nineteen field officers of the selected BKB
branches were interviewed. All the managers, the
second officers and the field officers of the
selected nineteen branches were interviewed
separately to know their independent views about
their problems with the help of interview
schedule. Every schedule contained both closed
and open-end questions. During the interview, the
authors themselves fill up the questionnaire. The
data processing work included editing and manual
tabulating of the surveyed data. Editing was done
to ensure whether the interview schedules were
fully and correctly completed and that the facts
recorded were consistent with one another. The
editing work was done by the authors themselves.
-
8/6/2019 International Journal of Computer and Business
44/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
36
Tabulation was done manually and simple
statistical tools like mean, standard deviation,
range and percentages were computed for
analyzing the data making more meaningful to the
readers.
2. BKB: An Overview
2.1 Legal Status & Nature of Business
Bangladesh Krishi Bank (BKB) was established
as a fully government owned bank under the
Presidential Order No. 27 of 1973. It is infact, the
successor of former Agricultural Development
Bank of Pakistan (ADBP) that was established in
1961 by the merger of Agricultural Development
Finance Corporation (ADFC) established in 1952
and Agricultural Bank of Pakistan (ABP)
established in 1957. After liberation ADBP
became Agricultural Development Bank of
Bangladesh (ADBB) and subsequently renamed
as the Bangladesh Krishi Bank in April, 1973.
The vision of the BKB is to ensure real economic
development of the country through providing
necessary loan facilities to the farmers in
developing and expanding agriculture and agro-
based activities and to the entrepreneurs of agro-
based and cottage industries in order todiversification and commercialization of
agricultural products and for strengthening rural
economy. The authorized and paid up capital of
the bank was Tk. 15,000 million and Tk. 9000
million respectively as on 31 March, 2010
(Activities of Bank and Financial Institutions
2009-10, p.213). The responsibility of the BKB
affairs and overall business operation and
administration are vested with the Board of
Directors. The Board of Directors consists of 11
members including chairman. BKB is authorized
to perform normal banking functions such as
accepting deposits, borrowing money, issuing and
selling bonds/debentures etc. BKB is the second
largest financial institution in Bangladesh which
has 952 branches and 10078 employeesupto 31
March, 2010 throughout the country (Ibid). There
are about 3188 thousand loanees throughout
Bangladesh under different loan portfolios (BKB:
Annual report 2008-09, p. 16). Available statistics
indicate that loan provided by the BKB for
different purposes increased from year to year and
stood at Tk. 6955 core in 2010. BKB provides
loans to individuals and corporate bodies related
to production of crops, Purchase of irrigation
machinery and agriculture equipment,
development of horticulture, pisciculture and
animal husbandry (Ibid, p. 37). In addition, BKB
has launched a good number of special poverty
alleviation and micro-credit programs, which
include: credit program towards landless and
marginal farmers, beef fattening program,
Shawnirvar credit program, development project
for small farmers and landless labour, South Asian
poverty alleviation program, UN capital
development program, employment generation
project for village women, BKB-NGO micro-
credit program, poverty alleviation program
through goat rearing, credit program for cow
rearing of the women, special micro-credit
program for the development of handicaps, micro-
enterprise development for the monipuri credit
program and special credit program for Rakhain
-
8/6/2019 International Journal of Computer and Business
45/88
International Research Journal of Computer and Business Vol. 1 Issue 8
www.irjcb.org
37
community lived at Coxs Bazar district (Ibid, p.
19). The principal activities of the BKB is to
provide credit to landless persons and persons
having lands who are engaged in agricultural and
other income generating activities to help increase
agricultural output and to remove poverty from
the country by improving socio-economic
conditions of the poor people and also accepting
money on deposit, borrowing money for the
purpose of the banks business from Bangladesh
Bank (BB) and providing professional counsel to
landless clients regarding investment in small
trade and cottage industries.
2.2 Objectives of the BKB
BKB was established to provide credit facilities to
the farmers and persons engaged in cottage
industries with a view to increasing and
improving both agricultural and industrial
production. In transacting its business, the bank
acts on commercial consideration but gives
preference to the credit needs of the small
farmers. However, the main objectives of the
BKB are:
i) To provide credit facilities and technical
consultations to the persons who are engaged in
agriculture and agro-based economic development
by increasing national production.
ii) To perform all the transactions including
general transactions and raise saving to
formulate capital of its own and to invest this
capital for national progress.
iii) To promote cottage and other allied industries
in rural and urban areas.
iv)To assist farmers in adopting appropriate
technologies under the banks
supervision.
v) To earn a normal profit for meeting the
operational expenses.
vi) To create employment opportunities for
solving the problems of unemployment of
the country.
2.3. Management Pattern of the BKB
According to the BKB Order, 1973 (Presidential
Order No. 27 of 1973), the responsibility of theBKB affairs and overall business operation and
administration were vested with the Board of
Directors. Initially the Board of Directors of the
BKB consisted of 7 directors including the
Managing Director as Chairman, four officials -
one each from the Ministry of Agriculture and
Forest, the Ministry of Fisheries and livestock and
the Bangladesh Bank and two non-officialsnominated by the Ministry of Finance. In April,
1981 the government of Bangladesh decided to
separate office of the Chairman and Managing
Director to appoint a non official director as
Chairman of the board whereas the managing
director remained the chief executive of the bank.
Accordingly the BKB Order, 1973 was amended.