Stock Price Fluctuation of Nepalese Commercial Banks

Abstract

Stock markets are the place where savings and investments are allocated effectively which plays a key element for the development of the economy. However, high level of fluctuation may adversely affect the financial system and makes the economy weak. This thesis shows the data of four commercial banks from fiscal year 2013/14 to fiscal year 2017/18. The study use Financial ratios to find out the analyze of MPS with EPS, DPS, NWPS, P/E ratio and Statistical tool to measure mean, standard deviation, correlation and regression analysis also by using SPSS version 23. The topic of stock price fluctuation of commercial bank is very crucial and important to those who are interested on it such as researcher investor etc. It shows the dependent variable MPS has positive relation with independent variables EPS, DPS, NWPS but having negative relation with P/E ratio. There is positive correlation between dependent variable MPS with independent variable EPS, DPS and NWPS but negative correlation between P/E ratio. Finally, the report shows macroeconomic environment is good in Nepal but infrastructure situation, technological readiness, and inefficient labour market are the main issue which should be addressed to make Nepalese investment environment more competitive.