Firm specific variable and equity return in case of commercial bank in nepal

Abstract

The purpose of this study is to examine the factors that influence Nepalese commercial banks' stock values. To construct a concise and precise analysis on a few chosen variables and pooled cross-sectional data that were gathered from NEPSE-listed banks at one point in time, the study is carried out utilizing quantitative methods followed by descriptive research. The F/Y 2014–15 to 2023–2024 is when the data was gathered. Ten commercial banks are chosen to be representative of the twenty commercial banks that make up the target population. Book value per share, the PE ratio, dividend yield, return on assets, and earnings yield are the variables under investigation. Multiple regression analysis, correlation, and descriptive statistics are carried out under statistical analysis. While earnings and dividend yield are very variable, descriptive statistics reveal that Nepalese commercial banks' book value per share and price-earnings ratio have been continuously increasing. Nepalese commercial banks' return on equity has a negative association with the PE ratio and no effect on BVPS, but it is positively connected with DY and EY. All the independent variables exhibit statistical significance. The study has policy implications for Nepal's commercial banks as well as the regulatory agency.

Keywords: Book value per share, dividend yield, earning yield, price earnings ratio, Return on Assets, Return on Equity.