STOCK PRICE BEHAVIOR IN NEPALESE DEVELOPMENT BANKS

Abstract

This study examines at stock price behaviour in Nepalese development banks, specifically the relationships between market price per share (MPS) and key financial indicators such as earnings per share (EPS), net worth per share (NWPS), price earnings ratio (P/E Ratio), and dividend per share (DPS). The study uses a descriptive and causal comparative research design, as well as statistical analyses such as regression and correlation tests, to evaluate existing conditions, identify relationships, and analyse the effects of these financial indicators on MPS. The findings show that MPS and NWPS have significant correlations, as does the P/E Ratio, with moderate relationships with EPS and DPS. According to regression analysis, NWPS and P/E Ratio have a significant impact on MPS, whereas EPS and DPS have a smaller effect. These findings have implications for managers, academics, and future researchers, as they provide actionable guidance for strategic decision-making in development banks, enrich theoretical frameworks in finance, and serve as a foundation for further investigation into stock price behaviour in emerging markets. Overall, this study contributes to a better understanding of market dynamics and provides useful insights for stakeholders navigating the complexities of Nepal's banking sector.