A COMPARATIVE ANALYSIS ON STOCK PRICE BEHAVIOR OF NEPALESE DEVELOPMENT BANKS
Date
2024
Authors
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Publisher
Shanker Dev Campus
Abstract
This study conducts a comparative analysis on the stock price behavior of Nepalese development banks, focusing on key financial indicators such as Market Price per Share (MPS), Dividend Per Share (DPS), Debt To Equity Ratio (D/E), Market Value to Book Value Ratio (MV/BV), and Return on Equity (ROE). Through a descriptive and causal research design spanning a decade from fiscal year 2012/013 to 2021/022, the study examines the structure and patterns of these variables across five selected development banks. Using secondary data collection methods, correlations among these variables are analyzed. Results indicate significant relationships between MPS and independent variables such as DPS, D/E, MV/BV, and ROE. Notably, MV/BV emerges as the most influential factor affecting MPS, while ROE exhibits a negative impact on stock prices. Regression analysis further confirms the significance of these relationships, with ANOVA statistics indicating strong associations between explanatory variables and MPS. In conclusion, this study sheds light on the intricate dynamics influencing stock price behavior in Nepalese development banks. Understanding the interplay between financial indicators and stock prices is crucial for investors, policymakers, and financial analysts in making informed decisions and managing risks in the banking sector.