Impact Of Firm Specific Factors On Firm Value In Nepalese Commercial Banks

Abstract

The purpose of this study was to estimate and analyze the effect of dividend policy, profitability, firm size, and growth on firm value in commercial banks listed on Nepal Stock Exchange from 2015 to 2019. A quantitative method is used for this research with five companies as research object, measured by purposive sampling techniques.The descriptive, correlational and regression has been employed in this study. Firm value(Tobin’s Q) was taken as dependent variables and whereas Company growth(GROWTH), dividend policy(DPR), profitability(ROA) and firm size(SIZE) were independent variables.The results show that firm size, dividend policy, profitability and growth have significant effect on firm value in financial sector companies in the period 2015-2019.Simultaneous results also show that dividend policy, profitability, firm size and growth had some effects on firm value.The data were collected from the Banking and Financial Statistics and Supervision Report published by Nepal Rastra Bank, and annual reports of selected banks. The regression models were estimated to test the effect of bank specific variables on performance of Nepalese financial institutions.The study recommended that the commercial banks board of directors, chief executive officer and marketing officer, stakeholders are taken carefully decision about company growth, firm size, profitability and dividend policy variable to increase the firm value.