DETERMINANTS OF STOCK PRICE IN NEPALESE COMMERCIAL BANKS

Abstract

The primary aim of this investigation is to explore how internal factors such as Dividend Per Share (DPS), Return on Equity (ROE), Price/Earnings (P/E) ratio, Book Value Per Share (BVPS), and Return on Assets (ROA) influence stock prices within the Nepalese commercial banking sector. This study has specific objectives, including the examination of the structure and trends of Market Price Per Share (MPS), ROE, DPS, P/E ratio, BVPS, and ROA. Additionally, it seeks to analyze the interrelationships among MPS, ROE, DPS, P/E ratio, BVPS, and ROA, and to ascertain how ROE, DPS, P/E ratio, BVPS, and ROA collectively impact the market price per share of commercial banks, identifying the most influential factor among these variables. Chapter two delves into a comprehensive review of theoretical literature concerning securities markets and share prices, encompassing discussions on various stock valuation models and theories of stock pricing. It also incorporates a thorough examination of international articles and theses concerning factors influencing share prices within commercial banking sectors. This section critically evaluates major issues and concludes with a summary highlighting the gaps to be addressed by the study. The research aims to shed light on the multifaceted factors influencing the market share prices of Nepalese commercial banks.