DIVIDEND PRACTICES AND ITS IMPACT ON SHARE PRICE IN NEPALESE COMMERCIAL BANK

Abstract

The objectives of research is to explore the current status of price earnings ratio, debt to assets ratio, return on assets, debt to equity ratio, and return on equity, price to book ratio, dividend payout ratio and stock price, to examine the relationship of price earnings ratio, debt to assets ratio, return on assets, debt to equity ratio, return on equity, price to book ratio, dividend payout ratio to the stock price and to analyze the impact of price earnings ratio, debt to assets ratio, return on assets, debt to equity ratio, return on equity, price to book ratio, dividend payout ratio to the stock price. The researcher done literature review of the research is mainly based on articles and thesis of previous scholars. The descriptive and casual comparative research design is used. The population is all the commercial bank of Nepal and all the joint venture bank are taken for research sample as cluster. Each companies has a 10 observation and in total 50 observations and secondary data SPSS and Excel are the tools of data analysis. The independent variable of the research are price earnings ratio, debt to assets ratio, return on assets, debt to equity ratio, and return on equity, price to book ratio, dividend payout ratio and the dependent variables and stock price. On the basis of the objective the finding are the respective joint venture commercial bank are the different between the minimum and maximum, mean and minimum, mean and maximum is very high. The value of standard deviation also high. The all the variables stock price, price earnings ratio, debt to assets ratio, debt to equity ratio, return on assets, return on equity, price to book ratio and dividend payout ratio are in the fluctuating nature. The relationship of price earnings ratio, debt to equity ratio, return on assets, return on equity, price to book ratio and dividend payout ratio are positive and significant to the stock price. The relationship of debt to assets ratio is negative to the stock price and not significant. The impact of Price earnings ratio, Debt to equity ratio, Return on Assets and Price to book ratio is positive and significant to the stock price. The impact of return on equity is negative and significant to the stock price. The Debt to assets ratio and Dividend payout ratio impact to the stock price is negative and not significant. Keywords: price earnings ratio, debt to equity ratio, return on assets, return on equity, price to book ratio and dividend payout ratio, debt to assets ratio and stock price