IMPACT OF FIRM SPECIFIC VARIABLES ON STOCK PRICE OF NEPALESE INSURANCE COMPANIES

Abstract

The objectives of research are to assess the current status of return on assets, return on equity, earnings per share, price earnings ratio, dividends per share, size (log of assets) and stock price of Nepalese insurance companies, to examine the relationship of return on assets, return on equity, earnings per share, price earnings ratio, dividend per share and size (log of assets) to the stock price of Nepalese insurance companies and to analyze the impact of return on assets, return on equity, earning per share, price earnings ratio, dividend per share and size (log of assets) to the stock price of Nepalese insurance companies. This research utilizes descriptive and causal-comparative research designs. The total population of the research are 35 listed insurance companies of NEPSE in the date of mid-July 2023. Based on the judgmental sampling 3 sample are selected from insurance companies. Financial and statistical analysis are conducted to achieve the objective of research. The finding of the study are: The result of the minimum maximum, mean and standard deviation combinations shows the rations such as dependent variable stock price and independent variables are return on assets, return on equity, and earnings per share, price earnings ratio, and dividend per share, company size and stock price all are fluctuating in nature. The relationship of return on equity, earning per share, price earnings ratio and dividend per share have significant and positive to the stock price of insurance companies. The return on assets has positive but not significant relationship to the stock price. The company size has negative and not significant relationship to the stock price. The impact of return on assets, return on equity, earnings per share, price earnings ratio and Dividend per share have significant positive impact to the stock price. The company size has negative and significant impact to the stock price.