Determinants of stock price of commercial banks listed in Nepal stock exchange

Abstract

This research looks on the factors that affect the stock price of commercial banks that are listed on the Nepal Stock Exchange. This study's main goal is to look into, evaluate, and understand the factors that influence Nepal's commercial banks' share prices. An approach to descriptive research was used to achieve the study's goals. For the study, which covered the fiscal years 2012–13 through 2021–22, a sample of five commercial banks was selected using the convenience sampling technique. The Nepal Stock Exchange, the Security Board of Nepal's annual supervision report, and the annual reports of the several commercial banks were the sources of the data. Using M.S. Excel and SPSS version 25, the correlation and multiple regression techniques were used to analyze the data. The market price per share (MPS) was used as the dependent variable, while the independent variables were book value per share (BVPS), earnings per share (EPS), dividend per share (DPS), and price earnings ratio (P/E ratio). The EPS, DPS, P/E ratio, and BVPS all have favorable correlations with the MPS. The results of the study indicate that the dependent variable (MPS) and the independent variables (EPS and P/E Ratio) have a high positive association, while the correlation between DPS, BVPS, and MPS is positive but not very strong. Lastly, the researcher suggests that the government create and implement stringent laws and regulations in order to encourage the market's expansion based on his analysis of the Nepalese share market. We'll put in place a system for reacting quickly to bogus businesses. The Nepalese capital market may therefore be more competitive. Key words: Price-earnings ratio, book value per share, earnings per share, dividend per share, and market price per share.