ANALYSIS OF INTERNAL FACTORS AFFECTING SHARE PRICE: WITH REFERENCE OF NON-LIFE INSURANCE LISTED ON NEPSE

Abstract

This study investigates the factors influencing the stock prices of Nepalese non-life insurance companies listed on the Nepal Stock Exchange (NEPSE). Utilizing a combination of descriptive and causal research designs, the study focuses on four companies (NLG, SIL, NECO, and NICL) selected through convenience sampling, with secondary data spanning from 2013/14 to 2022/23. Descriptive statistics, correlation analysis, and regression analysis were employed to analyze the data. The findings reveal that the book value per share (BVPS) and market value per share (MBVS) are significant predictors of market price per share (MPS). Other variables such as earnings per share (EPS), dividend per share (DPS), did not show statistically significant effects. The study underscores the importance of BVPS and MBVS in influencing stock prices and highlights the need for considering additional factors in investment decisions. The results have implications for investors, regulatory authorities, and policymakers, suggesting the need for improved financial disclosure, market regulation, and financial literacy education. The study's limitations and suggestions for future research are also discussed.