Impact of Dividend on Share Price of Nepalese Life Insurance Company

Abstract

The purpose of this study is to examine the impact of dividend on the market price of Nepalese life insurance companies. The study is based on data collected from four life insurance companies listed in Nepal Stock Exchange (NEPSE) for the period of FY 2014/15- FY 2018/19 by convenience sampling method. Calculated data has been tabulated and analyzed by using MS-Excel and SPSS. The paper investigates the relationship between earnings per shares, dividend per share, dividend payout ratio, earning yield and dividend yield on market price of Nepalese life insurance companies by using Descriptive Statistics Correlation and Regression and ANOVA test. The study concludes that dividend per share have positive significant relationship and dividend yield have negative significant relationship to market price of shares of Nepalese life insurance companies

Key Words: Market price per share, Earning per share, Dividend per share, Dividend payout ratio, Earning yield, Dividend yie