Blog

Why are Bangladesh based entrepreneurs not coming to equity market?

Entrepreneurs, established entrepreneurs do have funding needs; they will need external funding for financing acquisitions, expansions or extracting value from real options. Equity market is a popular financial intermediation medium available to entrepreneurs. The biggest and most successful entrepreneurs in the country are yet to find the capital market a lucrative source of financing for their companies that they built over the years. Take, for instance, the case of Meghna Group of Industries, which is one of the biggest conglomerates [...]

March 19, 2017 By BMBA 0 Comments Read more...

The world of Schumpeter

Joseph Schumpeter synchronized capitalism with a process of evolution in his very popular book ‘Capitalism, Socialism and Democracy’. Economic change was considered as the only stationary variable when Schumpeter described the evolutionary feature of the capitalist economy. This evolution process of capitalism is holistic and should not be evaluated on a real time basis. The evolutionary nature of capitalism is not merely due to the changes in the natural and social environment (war, revolutions and so on); due to the [...]

March 11, 2017 By BMBA 0 Comments Read more...

Operational problem while using Taylor’s rule for targeting interest

Taylor rule is very straightway; it is intuitive and it provides an easier way to understand the interest rate dynamics to the general mass, to the policy makers and to the participants in the financial market territory. But while using Taylor rule into practice there had been numerous instances where the operational maladies create puzzling equation for the researcher while proceeding. The way the equation data is filled in the equation often presents complicated problems for the researcher using [...]

March 3, 2017 By BMBA 0 Comments Read more...

Reinventing profit numbers

Traditionally profit numbers have been investigated only from accounting profit perspective and there has not been any cautious efforts made to associate profit numbers with the risk. Economic profit calculated through residual income approach is obviously an improvement as profit numbers are evaluated on a risk-adjusted basis. Net profit or comprehensive profit numbers do assemble numbers which are either non-synchronous with the business model or which are not sustainable in the longer run. Obviously comprehensive income is an improvement over [...]

February 25, 2017 By BMBA 0 Comments Read more...

Is Cash really the king?

Traditional finance textbooks talks about the supremacy of cash flow based accounting. Cash flow based accounting considers time value of money, it considers the quality of cash flow and it is supposed to be less vague a concept. There are a number of allegations often raised against accrual based accounting; at times regulators did not allow to depict the business reality; at times while preparing the book of accounts one needs to make too many estimations. So, even though [...]

February 22, 2017 By BMBA 0 Comments Read more...