FACTORS AFFECTING MARKET PRICE OF SHARE: EVIDENCE OF DEVELOPMENT BANKS IN NEPAL
Date
2024
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Shanker Dev Campus
Abstract
Market price of share is not consistent because it is affected by firm specific factors,
macroeconomic factors and phycological factors. Therefore, this study examines the
how firm specific and microeconomic factors influence market price of stock in Nepal
Stock Market. This study employed both descriptive and explanatory research design.
The secondary data were collected from ten development banks under the period of
2016/2017 to 2022/2023. To test the hypothesis multiple regression was used. The
result found that the market price per share (MPS) is highly positively correlated with
EPS. MPS is negatively correlated with consumer’s price index (CPI), whereas MPS
is low positively correlated with banks size and moderately positive correlated with
GDPGR, PER and DPS. The dependent variable of this study is MPS, which is
positively correlated with all of the independent variables, except low negative
correlation with consumer’s price index (CPI). The study's main finding is that the
model employed has a high statistical significance. A variety of independent
variables, including DPS, EPS, PER, SIZE, GDPGR and CPI might influence MPS
prediction. The results of the normality test indicate that the dependent variable's data
are distributed regularly. The regression result indicates that, coefficient of first four
independent variables are positive and last two are negative.