FACTORSAFFECTINGTHESHAREPRICEOF MICROFINANCE INNEPAL

Abstract

This study explores the determinants of share prices in Nepalese microfinance, focusing on three selected firms listed on the Nepal Stock Exchange. Using a descriptive and causal research design, the study has focused the data from such Micro finances. Microfinance’s are selected by a purposive sampling method. The result has been found the positively correlated with market price and other variables. The Vicariate correlation and multiple regression analysis are use to examine the relationship between independent and dependent variables. The study analyzes ten years of data (2013/014 to 2022/023) to investigate variables such as Return on Equity (ROE), Price-to-Earnings Ratio (P/E), Dividend Per Share (DPS), Book Value Per Share (BVPS), Inflation Rate (IR), Log Market Capitalization (LMC), and Gross Domestic Product (GDP). Purposive sampling was employed to select representative microfinance institutions, highlighting key drivers influencing market valuation and financial performance. The research findings underscore significant impacts of ROE, P/E, DPS, BVPS, IR, LMC, and GDP on Market Price per Share (MPS), crucial for stakeholders in strategic decision-making and policy formulation amidst economic complexities and global uncertainties.