Factors Influencing Stock Price Movements: A Panel Data Analysis of the Listed Life Insurance Companies in Bangladesh

The purpose of this study is to examine some specific factors such as earning per share (EPS), price-to-earnings (P/E) ratio, firm size, dividend yield (DY) and retention ratio (RR) that influence the stock price movements of Bangladeshi life insurance companies listed in DSE during the time of 2014 to 2024. Panel data was used, and the fixed effects model was applied to analyze the data. The study’s findings disclosed that the life insurance industry’s stock price listed on the DSE has a statistically significant substantial positive association with earnings per share EPS and price-to-earnings (P/E) ratio. This research assists policymakers in improving market rules, stabilizing the stock market, and fostering the development of Bangladeshi life insurance businesses via informed fiscal and monetary policies. It allows investors and financial advisors to enhance investment judgments by comprehending the impact of EPS, P/E ratio, firm size, dividend yield, and retention ratio on stock prices. These aspects enhance risk assessment and portfolio diversification, facilitating improved valuation and forecasting. The findings ultimately enhance the transparency, stability, and efficiency of the stock market in Bangladesh.