AN ANALYSIS OF SHARE PRICE BEHAVIOUR OF COMMERCIAL BANKS IN NEPAL

Abstract

The analysis of Nepali commercial banks' share price behavior from 2018 to 2022 is the main goal of this thesis. The explanatory factors' individual and combined impacts on the dependent variables are measured in the current research using correlation and linear multiple regression models. According to the empirical results, the independent variables EPS (correlation coefficient =.79), DPS (correlation coefficient =.90), and BVPS (correlation coefficient =.78) have positive correlations with one another. Further empirical research, however, indicates that the DPS and MPS of the sample banks in Nepal have a statistically significant positive association. The findings show that dividends per share have a positive and substantial link with share prices, and that they have a greater effect on share prices. The outcome of the run tests indicates that there is no evidence for the Random Walk Hypothesis (RWH) in the stock markets of Nepal. This result is consistent with the findings of earlier research conducted in the Nepalese environment.