Stock Price behavior of commercial banks of Nepal

Abstract

This study is mainly focused to define the common stock price behavior of the commercial banks of Nepal although the stock price is determined in the demand and supply; the price of the stock was depends on the qualitative and quantitative determinants. This study aims to identify the factors responsible for determinants of stock price and their relationship with the EPS, BPS and DPS, so different statistical and financial tools are used for the analysis of these parameters by using secondary daily and yearly stock data by computer aid software’s like IBM SPSS, Microsoft office packages. The study is oriented in the quantitative and qualitative analysis of the market price and dividend and earning by the company and its financial indicators status. The descriptive analysis give the volatility of the stock. The correlation and regression analysis is done by econometric model. And the stock price behavior is analyze by the auto correlation and run test. Result of the relationship between the MPS to the DPS, BPS and EPS of the commercial banks of Nepal by the Form analysis of correlation and regression of the banks the stock price was significant on the EPS, DPS and BPS positively and negatively. The run test and autocorrelation test also reveals that the stock price is not random in nature, so there is certain determinants that determines stock price of commercial banks of Nepal. in public level this research give the idea about the risk of the stock and helps to manage portfolio in another hand this study was useful for the policymakers and regulators for the transparent banking sectors and can also help to the corporate governance, risk management and market supervision alongside, this research is give the idea about market dynamics, behavioral finance and the relationship between the banks and financial markets as academic contribution.