IMPACT OF DIVIDEND DECISION ON STOCK PRICE

Abstract

Investors often face challenges in assessing the productivity of their investments and justifying their investment decisions. This research can help them by identifying gaps and suggesting improvements in dividend policies. Management can also benefit by using these insights to refine their dividend strategies. Furthermore, policymakers can use the comparative study of dividend policies to gain valuable insights for formulating effective policies. The dividend policies of joint venture banks (JVBs) are particularly interesting to various stakeholders, including customers, financial agencies, stock brokers, interested individuals, and scholars. This study, which focuses on the dividend policies of JVBs, will provide significant benefits, especially to the banks themselves. The research will utilize secondary data sourced from the annual reports of relevant commercial banks, as well as publications such as booklets, newspapers, magazines, books, securities exchange records, journals, and bulletins from the Nepal Rastra Bank. The study will consider factors such as Earnings Per Share (EPS), Dividend Per Share (DPS), Market Price per Share (MPS), Dividend Payout Ratio, Cash and Dividend Analysis, Earning Yield, and Dividend Yield. The results of this study cannot be generalized to all similar organizations because of the differences in their operations and business activities. The study covers a period of ten years, from 2070/71 to 2079/80. It is primarily conducted for academic purposes, so it may have limited practical applications. Keywords: Dividend Per Share, Earnings Per Share, Price Earnings Ratio, Dividend Yield, Dividend Payout Ratio