Impact Of Firm Specific Factors On Firm Value In Nepalese Commercial Banks
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Department of Management
Abstract
The purpose of this study was to estimate and analyze the effect of dividend policy,
profitability, firm size, and growth on firm value in commercial banks listed on Nepal
Stock Exchange from 2015 to 2019. A quantitative method is used for this research
with five companies as research object, measured by purposive sampling
techniques.The descriptive, correlational and regression has been employed in this
study. Firm value(Tobin’s Q) was taken as dependent variables and whereas
Company growth(GROWTH), dividend policy(DPR), profitability(ROA) and firm
size(SIZE) were independent variables.The results show that firm size, dividend
policy, profitability and growth have significant effect on firm value in financial
sector companies in the period 2015-2019.Simultaneous results also show that
dividend policy, profitability, firm size and growth had some effects on firm value.The
data were collected from the Banking and Financial Statistics and Supervision Report
published by Nepal Rastra Bank, and annual reports of selected banks. The regression
models were estimated to test the effect of bank specific variables on performance of
Nepalese financial institutions.The study recommended that the commercial banks
board of directors, chief executive officer and marketing officer, stakeholders are
taken carefully decision about company growth, firm size, profitability and dividend
policy variable to increase the firm value.