The Bangladesh Capital Market Institute (BICM) held a research discussion session titled “BISM Research Seminar-10” on Sunday, February 27.
Dr. Ibrahim Siraj, Assistant Professor in the School of Management at Long Island University, delivered his keynote presentation on “Management Capability and the Relevance of Earnings Value”.
BICM research consultant (part-time) Subarna Barua led the seminar chaired by the institute’s executive chairman, Dr. Mahmuda Akhter, a press release read.
Mohammad Salahuddin Chowdhury, Assistant Professor of Finance at the University of Dhaka, and Dr. Dewan Rahman, Senior Lecturer in Finance at the University of Queensland, were present as speakers.
The research presented at the seminar shows how much the capital market depends on the ratio of earnings to equity value and how it is affected by the ability to manage.
Data from the study shows that there is a strong positive relationship between managerial ability and earnings value relevance, the statement added.
Weak corporate governance and product market power have also been shown to positively affect the appropriateness of income standards.
If a company’s senior executives are competent, they can give more weight to the company’s accounting information in its stock market valuation.
During the discussion, Mohammad Salahuddin Chowdhury remarked that the ability to manage in the moment is seen as a competitive advantage and is essential to protect the interests of stakeholders.
On the other hand, Dr. Dewan Rahman highlighted the need to introduce indicators to determine management capacity, which would be an added value in current research.
The seminar ended with a question and answer session.
BICM professors, officials and other guests also attended the seminar.