Impact of dividend on equity share pricing of manufacturing companies in Nepal

Abstract

In Nepal, the manufacturing sector plays a crucial role in the overall financial system as well as the Nepalese stock market. However, it has not lived up to its potential in contributing to the country's economic growth and development. The manufacturing sector has faced several changes in its price based on the various financial factors or determinants. The study's findings indicate that Earning per share significantly influences the market price of the listed stock, highlighting the substantial role that EPS plays in shaping the Nepalese economy. Additionally, the research explores the relationship between determinants of the share price of the Nepalese Manufacturing company as well as the correlations between share price and its determinants. However, the performance of manufacturing companies has been primarily helped to increase the share price of the manufacturing companies. This study investigates the interplay between determinants of the share price of share price through correlation and regression analysis. It encompasses both descriptive and empirical analyses, with statistical data analyzed using SPSS. The research underscores the significant contribution of manufacturing companies to Stock Price. The study also observes the 5 manufacturing companies out of 6 listed in the NEPSE.

Keywords: Dividend Per Share, Earning Per Share, Leverage, Debt- Equity Ratio, Company Size, Market Price Per Share