Determinants of Share Price of Commercial Bank in Nepal

Abstract

The focus of this thesis is to analyze the determinant of share price of commercial bank in Nepal over the period 2012/13 to 2016/1 where MPS is dependent variable and EPS, BVPS, DPS and P/E Ratio are independent variables. In present study, Descriptive Research Design is adopted to achieve the objectives of this research. Among the 28 commercial banks which is the population, four commercial banks are selected as a sample which are listed and doing share transaction in NEPSE. The sampling method used is the Convenient sampling. Multiple correlation and simple and multiple regression models have been selected to measure the impact of share price with other variables. The empirical findings shows that EPS, BVPS, P/E Ratio have the significant positive impact with share price while DPS have significant negative impact with share price of selected banks. The impact of share price on P/E Ratio of NSBI and NBBL is significant while EPS, DPS and BVPS are not significant. This conclusion is in accordance with the conclusion of the past studies carried out in Nepalese context.