FACTORS AFFECTING THE SHARE PRICE OF NEPALESE INSURANCE COMPANIES

Abstract

This study investigates the factors affecting the share price of Nepalese insurance companies. The study investigates the connection between market price per share (MPS) and financial metrics such as EPS, P/E Ratio, ROA and ROE. This study's primary goal is to examine, evaluate, and interpret the factors affecting the share price of Nepalese insurance companies. To fulfill the study's objectives, descriptive causal comparative research design was used. For the study, a sample of four life insurance companies and four non-life insurance companies was chosen during the fiscal years 2070–2071 and 2079–2080. Data were gathered from the annual reports of the relevant insurance companies, Nepal Stock Exchange and Security Board of Nepal. With SPSS version 25, data were analyzed using the multiple regression and correlation techniques. The dependent variable in this study was the market price per share, whereas the independent variables were earnings per share, price earnings ratio, return on equity, and return on assets. The MPS exhibits a negative correlation with ROA and a positive correlation with EPS, P/E ratio, and ROE. According to the study's findings, independent variables such as ROA, ROE, EPS, and P/E ratio are statistically significant.