IMPACT OF DIVIDEND DISTRIBUTION ON STOCK PRICE OF COMMERCIAL BANKS OF NEPAL
Date
2024
Authors
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Journal ISSN
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Publisher
Shanker Dev Campus
Abstract
The research aims to assess the relationship between earnings and dividends, the market
price of stocks and dividend payout ratio, the market price of stocks and earnings, and
earnings and dividend yield in Nepalese commercial banks. Five banks NABIL, EBL,
NICA, NBL, and SBI were chosen as the sample. Research designs often fall into one of
five categories: quantitative, qualitative, or both. Only an analytical and descriptive
research design will be used for this investigation. To achieve the objectives of the study,
both financial and statistical tools have been used. The study found that higher earnings
indicate stronger companies, with NABIL and EBL paying higher dividends to
shareholders. The mean dividend per share (DPS) and dividend payout ratios fluctuated,
with NBL having the highest fluctuating DPR. The mean MVPS for five commercial banks
over a 10-year period was 834.92, with EPS ranging from 33.99 to 86.04 and a deviation
of 7.1247. A regression model showed that changes in independent variables explained
93.60 percent of changes in the dependent variable. Earnings per share, dividend per share,
dividend yield, and price earnings ratio have positive and statistically significant relations
with MVPS, making them good explanatory variables for banking performance analysis.
Keywords: earning per share, dividend per share, dividend payout ratio, dividend yield,
price earnings ratio, market value per share, bank performance and returns on equity