Stock price behavior of hotel and tourism companies in Nepal

Abstract

The objective behind conducting this study is to analyze the impact of dividend policy on Market Price per Share (MPS) to selected Nepalese Tourism Industry Hotels. The present study considered eight Hotels. The data was collected from the annual reports of the selected Hotels from 2014/015 to 2023/024. The analysis of data is done using descriptive statistics methods like correlation, regression, ANOVA tests. The present research concluded that RDS Hotel performed better than other Hotels in terms of MPS, EPS, DPS, DYR, PER. KDL Hotel performed better in terms of average dividend yield. The correlation test was conducted to see the relationship between variables. The present study found that MPS is positively correlated with EPS, DYR, and PER. The regression test was conducted to check which variables significantly impact MPS. The research found that the impact of EPS, DPS, and PER is significant on MPS while impact is limited in terms of other variables. The study reveals that “dividend policy is a more important determinant of stock prices in Nepalese hotel industries,” which proves the importance of dividend policy in Nepalese hotel industries. The conclusions drawn by this study are that among the Nepalese hotel companies in the tourism industry, RDS hotel has the highest performance in terms of market price per share, earnings per share, dividend per share, dividend yield ratio, and price earning ratio, while KDL hotel has the highest dividend yield ratio compared to all other hotel companies in Nepal. Correlation analysis reveals that market price per share is positively correlated with earnings per share, dividend yield ratio, and price earning ratio, while regression analysis reveals that earnings per share, dividend per share, and price earning ratio have a significant positive impact on market price per share, while other variables like ROE and BVPS have little