Advances in Economics and Business Vol. 1(3), pp. 282 - 289
DOI: 10.13189/aeb.2013.010305
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Effects of Misinformation on the Stock Return: A Case Study


A. F. M. Mainul Ahsan 1,*, Dr. Mohammad Osman Gani 1, Md. Bokhtiar Hasan 2
1 Dept. of Economics, School of Business, Independent University, angladesh (IUB), Dhaka, Bangladesh
2 Development & Information Department, Dhaka Stock Exchange Limited, Dhaka, Bangladesh

ABSTRACT

Information affects stock prices, even if it is not truthful. The news piped through the business press may contain deliberately planted misinformation. This study examines the effect of erroneous news and analysis by a leading daily newspaper on the performance of stock returns in the Dhaka Stock Exchange in Bangladesh. The reaction to the false news involves an unsustained jump in stock prices under misguided optimism. We also investigate the scope of legal remedies against false news and stock price manipulation. The responsibility and accountability of the media involved in spreading misinformation is also an issue.

KEYWORDS
Misinformation, Bank Company Act, Banking Sector

Cite this paper
A. F. M. Mainul Ahsan , Dr. Mohammad Osman Gani , Md. Bokhtiar Hasan . "Effects of Misinformation on the Stock Return: A Case Study." Advances in Economics and Business 1.3 (2013) 282 - 289. doi: 10.13189/aeb.2013.010305.