Impact of dividend policy on share price of Nepalese Commercial Banks

Abstract

The "IMPACT OF DIVIDEND POLICY ON SHARE PRICE OF NEPELASE COMMERCIAL BANK" is the subject of this study. The purpose of the research is to investigate the impact of dividend policy on share price of Nepalese commercial bank. Five commercial banks were selected as a sample bank from a total of 20 banks. The secondary data was gathered over the course of ten years, from 2013/14 to 2022/23, from the yearly reports that commercial banks published. With SPSS, the data is analyzed and interpreted using a descriptive study approach. GA, DPS, and EPS are included in the regression model to look into potential associations with MPS. The major conclusion of the study is that Dividends per share (DPS) and earnings per share (EPS) have a significant impact on the market price per share (MPS) of commercial banks in Nepal; however, firm's growth has insignificant impact .Therefore, the findings suggested that market share price is significantly positively impacted by the commercial bank’s dividend policy. This study’s findings will help investors and portfolio analysts to access the information about aspects to consider while making investment decisions and forecasting future dividends .The study's implications would be helpful recommendations for the bank's directors of finance and board of directors who should think about which aspects are more influential when deciding on dividends. Key words: Share price on the market, Growth in Assets, Dividend per Share, and Earning Price per Share