Contribution of Microfinance on Entrepreneurship Development

Abstract

The dividend policy of the company, which indicates how much of its earnings will be retained to promote future growth, is an important business decision. The primary goals of the research are to evaluate the dividend policies now followed by Nepalese listed businesses and determine whether or not dividend decisions are influenced by the financial structure, cash flow, company liquidity, stock prices, and investor satisfaction. The primary goals of the research are to assess how dividend policies affect sample commercial banks' stock prices and to look at how dividend practices and share prices are doing now in Nepalese commercial banks. In order to determine whether the market price of the sample commercial banks' stock is significantly impacted by earnings per share, dividends per share, and dividend payout ratio. Depending on the objectives of the investigation, both a causal and analytic research design will be employed. Thus, in order to fulfill the purpose of the study, secondary data will be used. Using a convenient sampling technique, the following banks have been selected as the study's sample: Nepal Bank Limited, Nabil Bank Limited, NMB Bank Limited, Kumari Bank Limited, and Nepal Investment Megha Bank Limited. All of the information needed for the study is gathered from secondary sources, primarily the websites of the listed firms and their financial statements as well as the trading reports released by NEPSE. According to the report, joint venture banks in Nepal have relatively high profits and dividend payouts. However, the listed firms in Nepal have not been able to deliver equitable dividends due to the low dividend payout ratio. Regarding dividend payments, none of these corporations have acceptable or well-defined policies. The lack of substantial correlation found between DPS and other variables suggests that none of these companies have a stronger dividend policy. The report goes on to say that in order to assess a company's development potential and financial stability, practitioners should look at its dividend indicators, which include net income, earnings per share (EPS), and dividend per share (DPS). Practitioners including investors, financial analysts, and portfolio managers must take profitability into account since it affects a stock's market price. Investment decisions are significantly influenced by profitability. Key Words: Dividend, Earning Per Share, Dividend Per Share, Market Price Per Share, Dividend Payout Ratio