DETERMINANTS OF STOCK PRICE OF NEPALESE COMMERCIAL BANK

Abstract

The objectives of research are to identify the current status of earnings per share (EPS), dividend per share (DPS), price earnings ratio (P/E), return on assets (ROA), return on equity (ROE), company size (size) ) and market price of share (MPS), to analyze the relationships between earnings per share (EPS), dividend per share (DPS), price earnings ratio (P/E), return on assets (ROA), return on equity (ROE), company size (size) and market price of share (MPS) and to examine the impact of earnings per share (EPS), dividend per share (DPS), price earnings ratio (P/E), return on assets (ROA), return on equity (ROE), company size (size) to the market price of share (MPS). The researcher conducted a literature review primarily based on previous scholars' articles and theses. They employed a descriptive and correlational research design. The study focused on the commercial banks of Nepal, with a sample of five banks chosen randomly from the population. Each bank was observed ten times, resulting in a total of 50 observations. Spss and excel were utilized for data analysis using secondary data. The independent variables included earnings per share (EPS), dividend per share (DPS), price earnings ratio (P/E), return on assets (ROA), return on equity (ROE), and company size (size). The dependent variable was market price of share (MPS). The finding of the research is that; the minimum and maximum gaps is higher. The gap between the mean and minimum and mean and maximum also higher. The standard deviation are found higher. So the current status of the each variable is fluctuating in nature. The relationship between earning per share, price earnings ratio, dividend per share, return on assets, return on equity are positive and significant to the market price of share. The relationship between size and market price of share is negative and not significant. The impact of earnings per share, price earnings ratio and dividend per share to the market price of share is positive and significant. The impact of return on equity and company size to the market price of share is positive and not significant.