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Browsing management by Author "Aakash Bhattarai"

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    DIVIDEND POLICY AND ITS IMPACT ON SHARE PRICE OF NEPALESE DEVELOPMENT BANKS
    (Shanker Dev Campus, 2024) Aakash Bhattarai; Madhusudan Gautam
    This study investigates the dividend payment practices and their impact on market prices of Nepalese Development Banks listed on the Nepal Stock Exchange (NEPSE). The objectives include examining the status of key financial indicators such as book value per share (BVPS), loan ratio (LR), cash dividend per share (CDPS), stock dividend per share (SDPS), dividend payout ratio (DPR), dividend yield (DY), bank size (BS), inflation rate (IR), and gross domestic product (GDP) growth rate. It also aims to analyze the effects of these variables on market price per share (MPS) and book value per share (BVPS). A descriptive and causal comparative research design was employed, utilizing secondary data collected from 15 selected development banks over a period spanning from fiscal year 2013–14 to 2022–23. Data were sourced from bank websites, NEPSE reports, balance sheets, and profit and loss statements. Descriptive analysis revealed substantial variations across banks in terms of financial indicators, indicating diverse financial strategies and market conditions. Regression analysis demonstrated that DPR positively influences MPS, suggesting that higher dividend payouts are perceived positively by investors. Conversely, DY exhibited a negative impact on MPS, implying that higher dividend yields may signal limited growth potential. Bank size and GDP growth rate were found to positively affect MPS, underscoring their significance in market valuation. The findings suggest that development banks in Nepal should strategically manage their dividend policies to enhance investor confidence and stock performance. Larger banks are perceived as more stable and attractive, highlighting the importance of growth and expansion strategies. Moreover, macroeconomic factors, particularly positive GDP growth, significantly influence stock prices, emphasizing the need for banks to monitor and respond to economic trends. In conclusion, this study contributes to understanding the dynamics of dividend policies, bank size, and macroeconomic conditions on the market prices of Nepalese Development Banks. Future research could explore the long-term impacts of these factors across different economic environments to enhance the robustness and applicability of these findings in global financial contexts.