STOCK PRICE MOVEMENT OF MICROFINANCE IN NEPAL

Abstract

This study explores the stock price movement of microfinance institutions (MFIs) in Nepal by examining the impact of Earnings Per Share (EPS), Dividends Per Share (DPS), Price-to-Earnings Ratio (P/E Ratio), Book Value Per Share (BVPS) and Return on Assets (ROA) on Market Price Per Share (MPS). Using data from 2018/19 to 2022/23, the research applies a descriptive and causal-comparative design, focusing on five MFIs: Sana Kishan Bikas Laghubitta Bittiya Sanstha (SKBBL), Chhimek Laghubitta Bittiya Sanstha Limited (CBBL), Deprosc Laghubitta Bittiya Sanstha Limited (DDBL), National Laghubitta Bittiya Sanstha Limited (NMFBS) and Mahila Laghubitta Bittiya Sanstha Limited (MLBBL). The study employs descriptive and inferential statistics, including correlation and regression analysis, to assess how these financial variables relate to and impact MPS. The findings reveal significant positive correlations between EPS the P/E Ratio and ROA with MPS, while DPS shows negative correlation with MPS and BVPS shows weak positive correlation with MPS. Regression results confirm that EPS, the P/E Ratio, BVPS and ROA positively impact on whereas DPS negatively impact on MPS.