DETERMINANTS OF STOCK PRICE OF LIFE INSURANCE COMPANIES IN NEPAL
Date
2024
Authors
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Journal ISSN
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Publisher
Shanker Dev Campus
Abstract
This thesis presents a comprehensive analysis of determinants of stock price dynamics
in the Nepalese life insurance sector, with a specific focus on three prominent
companies: Nepal Life Insurance Company Limited (NLIC), National Life Insurance
Company Limited (NLICL), and Asian Life Insurance Company Limited (ALICL). The
study covers a ten-year period from 2012/13 to 2021/22 and investigates the impact of
various financial variables, including Earnings Per Share (EPS), Price Earnings Ratio
(PER), Dividend Yield (DY), Return on Equity (ROE), and Stock Return (SR), on the
Market Value per Share (MPS) of these companies.
The study is based on primary data sources. Financial and statistical tools such as mean,
standard deviation, coefficient of variation, correlation analysis, and multiple
regression analysis are employed to assess the impact of key financial variables on the
Market Value per Share of these companies. The study also employs various statistical
tests and hypotheses to determine the significance of the relationships between these
variables.
The findings reveal significant variations in the financial performance of the three
selected companies, with NLIC demonstrating the highest average MPS, while ALICL
exhibits the highest volatility in its stock returns. Furthermore, the regression analysis
highlights the significant impact of EPS and PER on MPS, emphasizing the importance
of these variables in understanding stock market performance.
Keywords: determinants of stock price, market value per share, earning per share,
earning yield, stock return, dividend yield