Effect of earning per share and stock dividend on share price fluctuation of Private Commercial Banks: A comparative study of NMB Bank and Machhapuchhre Bank
Date
Authors
Shrestha, Shreejina
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Journal ISSN
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Publisher
Faculty of management
Abstract
The purpose of this study is to examine the effect of earnings per share and stock dividend on
the share price of commercial bank in Nepal. The study has been conducted to assess the
current situation of the share prices in the market of the commercial banks and describe the
situation and event occurring at the present context. The study is based on secondary data of
2 commercial banks of Nepal and data are collected from annual report (F/Y 2011/12 to F/Y
2018/19). The paper investigates the relationship between DPS, EPS, P/E ratio, BVPS, on
stock price by using Statistical tool, Correlation and Regression and probable error. EPS
and DPS have positive relationship with MPPS. The articles conclude that except DPS and
EPS they are other factors i.e. P/E ratio and BVPS also have positive relationship with stock
price. Investing in shares provide a profit with the increase in market price and dividend
distributed by the company