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Impact of fundamentals factors on stock price: case of selected commercial banks of Nepal / Laxmi Paudel
Title : Impact of fundamentals factors on stock price: case of selected commercial banks of Nepal Material Type: printed text Authors: Laxmi Paudel, Author Publication Date: 2016 Pagination: 71p. Size: GRP/Thesis Accompanying material: 5/B General note: Including bibilography Languages : English Descriptors: Banks
Banks and banking
Commercial banks
Nepal
Stocks
Stocks-PricesKeywords: 'equality share share price equality share prices return on assets return on equity' Class number: 332.632 Abstract: Fundamental factor is the ratio of financial and market ratios. Demand and supply forces are associated with changes in fundamental factors that are relevant for share price valuation like earnings per share, dividend per share, payout ratio, size of the firm and its growth. Suresh (2013) explained that fundamental analysis is a study to learn any related factors that can affect the security’s value, including individual specific factors and macroeconomic factors. The market price of a share is a key factor that influences investment decision of stock market investors. The share price is one of the most important indicators available to the investors for their decision to invest in or not a particular share (Gill & Mathur, 2012). Financial market plays a crucial role in mobilization or a constant flow of saving and changing these financial resources for expanding productive capacity in the countries. The key function of the stock market is to provide an exchange in which buyers and sellers interact for the purpose of trading in shares and other securities issued by publicly traded companies (Monther & Kaothar, 2010). Stock market is important in country’s economic development as well as the investor’s point of view. Hence it is necessary to analyze the basic factors of stock market which might influence the investor to invest their amount in the equity share prices. Investment in equity share is one of the most liquid forms of investment.
The main purpose of the study is to examine the impact of fundamental factors on stock price of Nepalese commercial banks. However, the specific objectives of the study are as follows: a) To determine the structure and pattern of earning per share, dividend per share, return on assets, return on equity, net profit margin and stock price, b) To find out the relation of earning per share, dividend per share and return on assets with stock price of Nepalese commercial banks, c) To investigate the impact of return on equity and net profit margin on stock market and d) To identify the most important variable affecting stock price of Nepalese commercial banks.
The study is based on descriptive and causal-comparative research designs. The descriptive research design has been adopted for fact-finding and searching for adequate information about the fundamental issues associated with variables affecting stock price of Nepalese commercial banks. It describes the real and actual condition, situation and facts. Hence, the research design adopted in this study is of descriptive type.
The study also establishes the cause and effect relationship between selected fundamental factor and stock price of commercial banks in Nepalese context. More specifically, the study analyzes the impact of return on assets, return on equity, net profit margin, dividend per share and earning per share on stock price of the Nepalese commercial banks during 2007 to 2014.
The average market price per share and change in market price per share is highest for SCBL. Average net profit margin is highest for NCC. NBB has highest return on equity and average return on assets. The earning per share is highest for EBL. NABIL has highest average dividend per share. The result shows positive beta coefficient for earning per share, return on assets and dividend per share. This indicates that higher the earning per share, higher would be the market price per share. Likewise, positive beta coefficient for dividend per share postulates that higher the dividend per share, higher would be the market price per share. The study also revealed that the beta coefficient for return on assets is positive with market price per share. This indicates that higher the return on assets higher would be the market price per share. The result shows positive beta coefficients for earning per share, return on assets, dividend per share and return on equity. This indicates that higher the earning per share, higher would be the change in market price per share. Likewise, positive beta coefficient for dividend per share postulates that higher the dividend per share, higher would be the change in market price per share. The study also revealed that the beta coefficient for return on assets is positive with change in market price per share. This indicates that higher the return on assets higher would be the change in market price per share.Impact of fundamentals factors on stock price: case of selected commercial banks of Nepal [printed text] / Laxmi Paudel, Author . - 2016 . - 71p. ; GRP/Thesis + 5/B.
Including bibilography
Languages : English
Descriptors: Banks
Banks and banking
Commercial banks
Nepal
Stocks
Stocks-PricesKeywords: 'equality share share price equality share prices return on assets return on equity' Class number: 332.632 Abstract: Fundamental factor is the ratio of financial and market ratios. Demand and supply forces are associated with changes in fundamental factors that are relevant for share price valuation like earnings per share, dividend per share, payout ratio, size of the firm and its growth. Suresh (2013) explained that fundamental analysis is a study to learn any related factors that can affect the security’s value, including individual specific factors and macroeconomic factors. The market price of a share is a key factor that influences investment decision of stock market investors. The share price is one of the most important indicators available to the investors for their decision to invest in or not a particular share (Gill & Mathur, 2012). Financial market plays a crucial role in mobilization or a constant flow of saving and changing these financial resources for expanding productive capacity in the countries. The key function of the stock market is to provide an exchange in which buyers and sellers interact for the purpose of trading in shares and other securities issued by publicly traded companies (Monther & Kaothar, 2010). Stock market is important in country’s economic development as well as the investor’s point of view. Hence it is necessary to analyze the basic factors of stock market which might influence the investor to invest their amount in the equity share prices. Investment in equity share is one of the most liquid forms of investment.
The main purpose of the study is to examine the impact of fundamental factors on stock price of Nepalese commercial banks. However, the specific objectives of the study are as follows: a) To determine the structure and pattern of earning per share, dividend per share, return on assets, return on equity, net profit margin and stock price, b) To find out the relation of earning per share, dividend per share and return on assets with stock price of Nepalese commercial banks, c) To investigate the impact of return on equity and net profit margin on stock market and d) To identify the most important variable affecting stock price of Nepalese commercial banks.
The study is based on descriptive and causal-comparative research designs. The descriptive research design has been adopted for fact-finding and searching for adequate information about the fundamental issues associated with variables affecting stock price of Nepalese commercial banks. It describes the real and actual condition, situation and facts. Hence, the research design adopted in this study is of descriptive type.
The study also establishes the cause and effect relationship between selected fundamental factor and stock price of commercial banks in Nepalese context. More specifically, the study analyzes the impact of return on assets, return on equity, net profit margin, dividend per share and earning per share on stock price of the Nepalese commercial banks during 2007 to 2014.
The average market price per share and change in market price per share is highest for SCBL. Average net profit margin is highest for NCC. NBB has highest return on equity and average return on assets. The earning per share is highest for EBL. NABIL has highest average dividend per share. The result shows positive beta coefficient for earning per share, return on assets and dividend per share. This indicates that higher the earning per share, higher would be the market price per share. Likewise, positive beta coefficient for dividend per share postulates that higher the dividend per share, higher would be the market price per share. The study also revealed that the beta coefficient for return on assets is positive with market price per share. This indicates that higher the return on assets higher would be the market price per share. The result shows positive beta coefficients for earning per share, return on assets, dividend per share and return on equity. This indicates that higher the earning per share, higher would be the change in market price per share. Likewise, positive beta coefficient for dividend per share postulates that higher the dividend per share, higher would be the change in market price per share. The study also revealed that the beta coefficient for return on assets is positive with change in market price per share. This indicates that higher the return on assets higher would be the change in market price per share.Hold
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Barcode Call number Media type Location Section Status 251/D 332.632 PAU Thesis/Dissertation Uniglobe Library Social Sciences Available Impact of liquidity management on bank profitability in Nepalese commercial banks / Yooba Raj Gautam
Title : Impact of liquidity management on bank profitability in Nepalese commercial banks Material Type: printed text Authors: Yooba Raj Gautam, Author Publication Date: 2017 Pagination: 100p. Size: GRP/Thesis Accompanying material: 6/B Languages : English Descriptors: Liquidity (Economics)
Liquidity on profitabilityClass number: 332.632 Abstract: Business success depends heavily on the ability of financial managers to effectively manage the components of working capital (Filbeck and Krueger, 2005). Profitability and liquidity are used for long term in each business for strong work and promotion in the business both liquidity and profitability are parallel to one another. The importance of liquidity management as it affects corporate profitability in today’s business cannot be over emphasized. Thus, liquidity is lifeblood of a banking system (Cucinelli, 2013). Biety (2003) and Anyanwu (1993) asserted that the objective of liquidity management is to gear banks towards a financial position that enables them meet their financial obligations. Profitability may be regarded as a relative term measurable in terms of profit and its relation with other elements that can directly influence the profit. In order to find the profitability level of firms, profitability ratios are used.
The determinants of profitability and theories thereof used in this review are those frequently described in conventional banking studies and literature. Return on assets and return on equity is a major part of banks’ profit; this is basically why the financial intermediaries try to offer lowest returns to savers and lend funds to borrowers at the highest possible interest rates. To achieve the goal of owners’ wealth maximization, banks should manage their assets, liabilities, and capital efficiently. In doing this, better policy should set out the bank’s philosophy and specific procedures and means of monitoring the lending activity.
The major purpose of this study is to examine the relationship between liquidity management and bank performance in Nepalese commercial banks. The specific objectives are: to analyze the structure and pattern of dependent (ROA and ROE) and independent variables (capital ratio, deposit to assets ratio, current ratio, liquidity ratio, quick ratio and investment ratio), to examine the relationship between capital ratio and bank performance, to identify the effect of deposit to assets ratio and current ratio on bank performance, to examine the relationship between liquidity ratio and bank performance and to examine the relationship between quick ratio and investment ratio on profitability of the bank.
This study based on the secondary source of data which were gather for a sample of 20 commercial banks of Nepal within the time period from 2009/10 to 2014/15, leading to the total of 120 observations The secondary data have been obtained from Banking and Financial Statistics and Bank Supervision report published by Nepal Rastra Bank and annual report of selected banks. The research design adopted in this study is descriptive and causal comparative types as it deals with relationship of reward practice factor like capital ratio, deposit to assets ratio, current ratio, liquidity ratio, quick ratio and investment ratio with ROA (return on assets) and ROE (return on equity). The statistical methods used in the analysis are descriptive statistics, correlation analysis and regression analysis.
The result revealed that the capital ratio, deposit to assets ratio and current ratio are positively correlated with ROA. It indicates that higher the capital ratio, deposit to assets ratio and current ratio, higher would be the ROA. Study reveals that liquidity ratio, quick ratio and investment ratio are positively correlated with ROA which reveals that increase in liquidity ratio, quick ratio and investment ratio leads to increase in ROA. The result also shows that capital ratio, deposit to assets ratio and current ratio positively correlated to ROE. Study reveals that liquidity ratio, quick ratio and investment ratio are positively correlated to ROE. The beta coefficient is positive for capital ratio, deposit to assets ratio, current ratio, liquidity ratio, quick ratio and investment ratio and bank performance.
The study concludes that quick ratio and liquidity ratio has negative and significant relationship with bank profitability indicating higher the quick ratio and liquidity ratio, lower would be the return on assets and return on equity. Similarly, deposit to assets ratio has negative and significant relationship with the return on assets whereas it has positive and significant impacts on the return on equity for Nepalese commercial. The study also concludes that capital ratio has significant positive impact with both return on assets and return on equity of Nepalese commercial banks indicating higher the capital ratio, higher will be the return on assets and return on equity. Similarly, the study also concludes that current ration and investment ratio has significant positive impact on the return on assets and return on equity indicating that higher the current ratio and investment ratio, higher would be the return on assets and return on equity.
Impact of liquidity management on bank profitability in Nepalese commercial banks [printed text] / Yooba Raj Gautam, Author . - 2017 . - 100p. ; GRP/Thesis + 6/B.
Languages : English
Descriptors: Liquidity (Economics)
Liquidity on profitabilityClass number: 332.632 Abstract: Business success depends heavily on the ability of financial managers to effectively manage the components of working capital (Filbeck and Krueger, 2005). Profitability and liquidity are used for long term in each business for strong work and promotion in the business both liquidity and profitability are parallel to one another. The importance of liquidity management as it affects corporate profitability in today’s business cannot be over emphasized. Thus, liquidity is lifeblood of a banking system (Cucinelli, 2013). Biety (2003) and Anyanwu (1993) asserted that the objective of liquidity management is to gear banks towards a financial position that enables them meet their financial obligations. Profitability may be regarded as a relative term measurable in terms of profit and its relation with other elements that can directly influence the profit. In order to find the profitability level of firms, profitability ratios are used.
The determinants of profitability and theories thereof used in this review are those frequently described in conventional banking studies and literature. Return on assets and return on equity is a major part of banks’ profit; this is basically why the financial intermediaries try to offer lowest returns to savers and lend funds to borrowers at the highest possible interest rates. To achieve the goal of owners’ wealth maximization, banks should manage their assets, liabilities, and capital efficiently. In doing this, better policy should set out the bank’s philosophy and specific procedures and means of monitoring the lending activity.
The major purpose of this study is to examine the relationship between liquidity management and bank performance in Nepalese commercial banks. The specific objectives are: to analyze the structure and pattern of dependent (ROA and ROE) and independent variables (capital ratio, deposit to assets ratio, current ratio, liquidity ratio, quick ratio and investment ratio), to examine the relationship between capital ratio and bank performance, to identify the effect of deposit to assets ratio and current ratio on bank performance, to examine the relationship between liquidity ratio and bank performance and to examine the relationship between quick ratio and investment ratio on profitability of the bank.
This study based on the secondary source of data which were gather for a sample of 20 commercial banks of Nepal within the time period from 2009/10 to 2014/15, leading to the total of 120 observations The secondary data have been obtained from Banking and Financial Statistics and Bank Supervision report published by Nepal Rastra Bank and annual report of selected banks. The research design adopted in this study is descriptive and causal comparative types as it deals with relationship of reward practice factor like capital ratio, deposit to assets ratio, current ratio, liquidity ratio, quick ratio and investment ratio with ROA (return on assets) and ROE (return on equity). The statistical methods used in the analysis are descriptive statistics, correlation analysis and regression analysis.
The result revealed that the capital ratio, deposit to assets ratio and current ratio are positively correlated with ROA. It indicates that higher the capital ratio, deposit to assets ratio and current ratio, higher would be the ROA. Study reveals that liquidity ratio, quick ratio and investment ratio are positively correlated with ROA which reveals that increase in liquidity ratio, quick ratio and investment ratio leads to increase in ROA. The result also shows that capital ratio, deposit to assets ratio and current ratio positively correlated to ROE. Study reveals that liquidity ratio, quick ratio and investment ratio are positively correlated to ROE. The beta coefficient is positive for capital ratio, deposit to assets ratio, current ratio, liquidity ratio, quick ratio and investment ratio and bank performance.
The study concludes that quick ratio and liquidity ratio has negative and significant relationship with bank profitability indicating higher the quick ratio and liquidity ratio, lower would be the return on assets and return on equity. Similarly, deposit to assets ratio has negative and significant relationship with the return on assets whereas it has positive and significant impacts on the return on equity for Nepalese commercial. The study also concludes that capital ratio has significant positive impact with both return on assets and return on equity of Nepalese commercial banks indicating higher the capital ratio, higher will be the return on assets and return on equity. Similarly, the study also concludes that current ration and investment ratio has significant positive impact on the return on assets and return on equity indicating that higher the current ratio and investment ratio, higher would be the return on assets and return on equity.
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Barcode Call number Media type Location Section Status 318/D 332.632 GAU Thesis/Dissertation Uniglobe Library Social Sciences Available Impact of liquidity on profitability in Nepalese commercial banks / Deepa Shrestha
Title : Impact of liquidity on profitability in Nepalese commercial banks Material Type: printed text Authors: Deepa Shrestha, Author Publication Date: 2016 Pagination: 67p. Size: GRP/Thesis Accompanying material: 4/B General note: Including bibilography Languages : English Descriptors: Banks
Banks and banking
Commercial banks
liquidity on profitabilityKeywords: 'liquidity economics nepal commercial banks banks' Class number: 332.632 Abstract: Liquidity is a financial term that means the amount of capital that is available for investment. Today, most of this capital is credit fund. That is because the large financial institutions that do most investments prefer using borrowed money (Felix and Claudine, 2008). Low interest rates mean credit is cheaper, thus, businesses and investors are more likely to borrow. The return on investment has to be higher than the interest rate, to make investments attractive. In this way, high liquidity spurs economic growth (Heffernan, 1996). The banking institution had contributed significantly to the effectiveness of the entire financial system as they offer an efficient institutional mechanism through which resources can be mobilized and directed from less essential uses to more productive investments (Wilner, 2000).
Liquidity creation itself is seen as the primary source of economic welfare contribution by banks and also as their primary source of risk (Bryant 1980; Diamond and Dybvig 1983; Calomiris and Kahn 1991). Therefore, virtually every financial transaction or commitment has implications for bank’s liquidity. In Nepalese context, Karki (2004) found that liquidity ratio was relatively fluctuating over the period, return on the equity is found satisfactory and there is positive relationship between deposits and loan advances. Joshi (2004) found that the liquidity and banks loan are positively related to banks profitability and Maharjan (2007) revealed that the capital adequacy and liquidity is positively associated with banks profitability.
This study has aimed to determine the impact of bank liquidity on financial performance through analyzing statistically significant factors affecting banks liquidity on financial performance. The other objectives are: to investigate the impact of liquidity risk on performance of Nepalese commercial banks, to analyze the effect of capital ratio to the return on equity and return on assets as financial performance measure of the Nepalese commercial banks, to analyze the effect of changes in investment ratio of the banks to the financial performance, to investigate the relationship of the liquidity ratio with financial performance measured by return on equity (ROE) and return on assets (ROA), and to examine the effect of quick ratio/acid-test ratio to the financial performance of the commercial banks.
The research design adopted in this study consists of descriptive and causal comparative research designs to deal with the various issues raised in this study. The descriptive research design has been adopted to undertake fact- finding operation searching for adequate information in Nepalese context. The study is based on pooled cross-sectional analysis of secondary data of 16 commercial banks for the period 2005/06 to 2013/14.
Results revealed that return on equity is positively related to investment ratio which is similar to result with return on assets. This indicates that higher the investment ration higher would be the return on assets and return on equity. Similarly, correlation between capital ratio and return on equity found to be positive indicating higher the capital ratio higher would be the return on equity. However, the correlation between return on equity and liquidity ratio is found to be negative indicating higher the liquidity in the bank lower would be the return on equity. Further, the correlation is found to be negative for quick ratio with return on equity, this result is contradictory to result with return on assets. Beta coefficient is positive for investment ratio and capital adequacy with bank performance and it is significant at one percent level, which indicates that increased investment ratio and capital ratio increases the bank performance of the banks. However, beta coefficient for liquidity ratio and quick is negative with return on assets and return on equity indicating increased liquidity ratio and quick ratio decreases the return on assets and return on equity of the bank, but this relation is not significant at five percent level.
This study concludes that liquidity status of the bank plays important role in banking performance in case of Nepalese commercial banks. This study revealed that investment ratio, liquidity ratio and capital ratio has positive impact on bank performance, while quick ratio has positive impact on the same. The result with one year lagged variables also showed similar result that higher liquidity ratio, investment ratio and increased capital ration result in increase in the bank performance measured by return on assets and return on equity. However, the negative relation with quick ratio showed that increased quick ratio may leads to decrease in bank performance. The study suggests that banks willing to increase bank performance should increase capital ratio and investment ratio while should control liquidity ratio and quick ratio.
Impact of liquidity on profitability in Nepalese commercial banks [printed text] / Deepa Shrestha, Author . - 2016 . - 67p. ; GRP/Thesis + 4/B.
Including bibilography
Languages : English
Descriptors: Banks
Banks and banking
Commercial banks
liquidity on profitabilityKeywords: 'liquidity economics nepal commercial banks banks' Class number: 332.632 Abstract: Liquidity is a financial term that means the amount of capital that is available for investment. Today, most of this capital is credit fund. That is because the large financial institutions that do most investments prefer using borrowed money (Felix and Claudine, 2008). Low interest rates mean credit is cheaper, thus, businesses and investors are more likely to borrow. The return on investment has to be higher than the interest rate, to make investments attractive. In this way, high liquidity spurs economic growth (Heffernan, 1996). The banking institution had contributed significantly to the effectiveness of the entire financial system as they offer an efficient institutional mechanism through which resources can be mobilized and directed from less essential uses to more productive investments (Wilner, 2000).
Liquidity creation itself is seen as the primary source of economic welfare contribution by banks and also as their primary source of risk (Bryant 1980; Diamond and Dybvig 1983; Calomiris and Kahn 1991). Therefore, virtually every financial transaction or commitment has implications for bank’s liquidity. In Nepalese context, Karki (2004) found that liquidity ratio was relatively fluctuating over the period, return on the equity is found satisfactory and there is positive relationship between deposits and loan advances. Joshi (2004) found that the liquidity and banks loan are positively related to banks profitability and Maharjan (2007) revealed that the capital adequacy and liquidity is positively associated with banks profitability.
This study has aimed to determine the impact of bank liquidity on financial performance through analyzing statistically significant factors affecting banks liquidity on financial performance. The other objectives are: to investigate the impact of liquidity risk on performance of Nepalese commercial banks, to analyze the effect of capital ratio to the return on equity and return on assets as financial performance measure of the Nepalese commercial banks, to analyze the effect of changes in investment ratio of the banks to the financial performance, to investigate the relationship of the liquidity ratio with financial performance measured by return on equity (ROE) and return on assets (ROA), and to examine the effect of quick ratio/acid-test ratio to the financial performance of the commercial banks.
The research design adopted in this study consists of descriptive and causal comparative research designs to deal with the various issues raised in this study. The descriptive research design has been adopted to undertake fact- finding operation searching for adequate information in Nepalese context. The study is based on pooled cross-sectional analysis of secondary data of 16 commercial banks for the period 2005/06 to 2013/14.
Results revealed that return on equity is positively related to investment ratio which is similar to result with return on assets. This indicates that higher the investment ration higher would be the return on assets and return on equity. Similarly, correlation between capital ratio and return on equity found to be positive indicating higher the capital ratio higher would be the return on equity. However, the correlation between return on equity and liquidity ratio is found to be negative indicating higher the liquidity in the bank lower would be the return on equity. Further, the correlation is found to be negative for quick ratio with return on equity, this result is contradictory to result with return on assets. Beta coefficient is positive for investment ratio and capital adequacy with bank performance and it is significant at one percent level, which indicates that increased investment ratio and capital ratio increases the bank performance of the banks. However, beta coefficient for liquidity ratio and quick is negative with return on assets and return on equity indicating increased liquidity ratio and quick ratio decreases the return on assets and return on equity of the bank, but this relation is not significant at five percent level.
This study concludes that liquidity status of the bank plays important role in banking performance in case of Nepalese commercial banks. This study revealed that investment ratio, liquidity ratio and capital ratio has positive impact on bank performance, while quick ratio has positive impact on the same. The result with one year lagged variables also showed similar result that higher liquidity ratio, investment ratio and increased capital ration result in increase in the bank performance measured by return on assets and return on equity. However, the negative relation with quick ratio showed that increased quick ratio may leads to decrease in bank performance. The study suggests that banks willing to increase bank performance should increase capital ratio and investment ratio while should control liquidity ratio and quick ratio.
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Barcode Call number Media type Location Section Status 178/D 332.632 SHR Thesis/Dissertation Uniglobe Library Philosophy & Psychology Available Impact of macroeconomic and bank specific variables on lending behaviour of banks: a case of public and private sector commercial banks of Nepal / Sumira Pradhan
Title : Impact of macroeconomic and bank specific variables on lending behaviour of banks: a case of public and private sector commercial banks of Nepal Material Type: printed text Authors: Sumira Pradhan, Author Publication Date: 2016 Languages : English Descriptors: Macroeconomics Class number: 332.632 Abstract: Commercial banks provide loans to customers on the basis of three principles guiding their operations which are, profitability, liquidity and solvency (Olokoyo, 2011).Banks do grant loans and advance to individuals; business organizations as well as government in order to enable them embark on investment and development activities as a mean of aiding their growth in particular or contributing toward the economic development of a country in general (McKinnon, 2009). Vohra and Sehgal (2012) argued that lending is the most profitable, for the interest rates realized on loans have always been well above those realized on investments. The study focus on dependent variable lending behavior which consists of two proxies: total loans to total assets and non-performing loans to total loans.
The major objective of the study was to examine the impact of macroeconomic (i.e. GDP and inflation) and bank specific (i.e. CRR, liquidity, deposit, WAIRS and bank size) variables on lending behavior of Nepalese commercial banks. However, the specific objectives are to: (a) to analyze the structure and pattern of total loan to total assets, nonperforming to total loan, cash reserve ratio, liquidity, deposit, interest rate spread and size.; (b) to find out the relationship of macroeconomic (GDP and inflation) and bank specific (CRR, deposit, liquidity, interest rate spread and size) variables with total loan to total assets and nonperforming loan to total loan; (c) to examine the effect of macroeconomic and bank specific variables on lending behavior of Nepalese public commercial banks ; (d) to evaluate the impact of macroeconomic and bank specific variables on lending behavior of Nepalese private commercial banks.
The study has employed descriptive research design and causal comparative research design to deal with the issues associated with the impact of macroeconomic and bank specific variables on lending behavior. Total loans to total assets and non-performing loans to total loans are the dependent variables whereas gross domestic product, inflation, cash reserve ratio, deposit, liquidity, weighted average interest rate spread and bank size are the independent variables. The study is based on secondary data for a sample of 18 commercial banks which includes 2 public sector banks and 16 private sector banks leading to a total of 122 observations. The study used the panel data for the period of 7 years from the year 2007/08 to 2013/2014. Stratified sampling technique was used to select 18 sample banks from the population of 29 commercial banks. The secondary data were collected from different sources like annual reports of concerned sample banks, supervision reports published by Nepal Rastra Bank and World Bank for the macroeconomic variables.
The average TL/TA for the selected commercial banks of Nepal is highest for PCBL and lowest for SCB. The average NPL/TL for the total sample is highest for NBB and lowest for EBL. Similarly, the average TL/TA for public commercial banks is highest for ADBL and lowest for NBL. The average NPL/TL for public commercial banks is highest for ADBL and lowest for NBL. Likewise, the average TL/TA for private commercial banks is highest for PCBL and lowest for SCB. The average NPL/TL is highest for NBB and lowest for EBL.The result shows that GDP is positively related to total loans to total assets for Nepalese commercial banks. Moreover, gross domestic product, cash reserve ratio and weighted average interest rate spread are positively related to non-performing loans to total loans for Nepalese commercial banks. The result also shows that GDP is positively related to total loans to total assets for Nepalese public commercial banks. Moreover, gross domestic product is positively related to non-performing loans to total loans for Nepalese public commercial banks.The result shows that inflation and weighted average interest rate spread are positively related to total loans to total assets for Nepalese private commercial banks. Moreover, gross domestic product, cash reserve ratio and weighted average interest rate spread is positively related to non-performing loans to total loans for Nepalese private commercial banks.
The major conclusion of the study is that CRR, liquidity, deposit and bank size plays a major role on total loans to total assets as one of the proxy of bank lending behavior in the context of Nepalese commercial banks. Likewise, for the second proxy i.e. non-performing loans to total loans, CRR and weighted average interest rate spread plays a major role in the context of Nepalese commercial banks. The study also concludes that in the context of Nepalese public commercial banks, liquidity and weighted average interest rate spread have an important role on total loans to total assets. The study further concludes that liquidity and bank size plays a major role on total loans to total assets as one of the proxy of bank lending behavior in the context of Nepalese private commercial banks.
Impact of macroeconomic and bank specific variables on lending behaviour of banks: a case of public and private sector commercial banks of Nepal [printed text] / Sumira Pradhan, Author . - 2016.
Languages : English
Descriptors: Macroeconomics Class number: 332.632 Abstract: Commercial banks provide loans to customers on the basis of three principles guiding their operations which are, profitability, liquidity and solvency (Olokoyo, 2011).Banks do grant loans and advance to individuals; business organizations as well as government in order to enable them embark on investment and development activities as a mean of aiding their growth in particular or contributing toward the economic development of a country in general (McKinnon, 2009). Vohra and Sehgal (2012) argued that lending is the most profitable, for the interest rates realized on loans have always been well above those realized on investments. The study focus on dependent variable lending behavior which consists of two proxies: total loans to total assets and non-performing loans to total loans.
The major objective of the study was to examine the impact of macroeconomic (i.e. GDP and inflation) and bank specific (i.e. CRR, liquidity, deposit, WAIRS and bank size) variables on lending behavior of Nepalese commercial banks. However, the specific objectives are to: (a) to analyze the structure and pattern of total loan to total assets, nonperforming to total loan, cash reserve ratio, liquidity, deposit, interest rate spread and size.; (b) to find out the relationship of macroeconomic (GDP and inflation) and bank specific (CRR, deposit, liquidity, interest rate spread and size) variables with total loan to total assets and nonperforming loan to total loan; (c) to examine the effect of macroeconomic and bank specific variables on lending behavior of Nepalese public commercial banks ; (d) to evaluate the impact of macroeconomic and bank specific variables on lending behavior of Nepalese private commercial banks.
The study has employed descriptive research design and causal comparative research design to deal with the issues associated with the impact of macroeconomic and bank specific variables on lending behavior. Total loans to total assets and non-performing loans to total loans are the dependent variables whereas gross domestic product, inflation, cash reserve ratio, deposit, liquidity, weighted average interest rate spread and bank size are the independent variables. The study is based on secondary data for a sample of 18 commercial banks which includes 2 public sector banks and 16 private sector banks leading to a total of 122 observations. The study used the panel data for the period of 7 years from the year 2007/08 to 2013/2014. Stratified sampling technique was used to select 18 sample banks from the population of 29 commercial banks. The secondary data were collected from different sources like annual reports of concerned sample banks, supervision reports published by Nepal Rastra Bank and World Bank for the macroeconomic variables.
The average TL/TA for the selected commercial banks of Nepal is highest for PCBL and lowest for SCB. The average NPL/TL for the total sample is highest for NBB and lowest for EBL. Similarly, the average TL/TA for public commercial banks is highest for ADBL and lowest for NBL. The average NPL/TL for public commercial banks is highest for ADBL and lowest for NBL. Likewise, the average TL/TA for private commercial banks is highest for PCBL and lowest for SCB. The average NPL/TL is highest for NBB and lowest for EBL.The result shows that GDP is positively related to total loans to total assets for Nepalese commercial banks. Moreover, gross domestic product, cash reserve ratio and weighted average interest rate spread are positively related to non-performing loans to total loans for Nepalese commercial banks. The result also shows that GDP is positively related to total loans to total assets for Nepalese public commercial banks. Moreover, gross domestic product is positively related to non-performing loans to total loans for Nepalese public commercial banks.The result shows that inflation and weighted average interest rate spread are positively related to total loans to total assets for Nepalese private commercial banks. Moreover, gross domestic product, cash reserve ratio and weighted average interest rate spread is positively related to non-performing loans to total loans for Nepalese private commercial banks.
The major conclusion of the study is that CRR, liquidity, deposit and bank size plays a major role on total loans to total assets as one of the proxy of bank lending behavior in the context of Nepalese commercial banks. Likewise, for the second proxy i.e. non-performing loans to total loans, CRR and weighted average interest rate spread plays a major role in the context of Nepalese commercial banks. The study also concludes that in the context of Nepalese public commercial banks, liquidity and weighted average interest rate spread have an important role on total loans to total assets. The study further concludes that liquidity and bank size plays a major role on total loans to total assets as one of the proxy of bank lending behavior in the context of Nepalese private commercial banks.
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Barcode Call number Media type Location Section Status 219/D 332.632 PRA Books Uniglobe Library Social Sciences Available Impact of ownership structure on dividend policy of Nepalese commercial banks / Pooja Neupane
Title : Impact of ownership structure on dividend policy of Nepalese commercial banks Material Type: printed text Authors: Pooja Neupane, Author Publication Date: 2018 Pagination: 89p. Size: GRP/Thesis Accompanying material: 11/B Languages : English Descriptors: Dividends Class number: 332.632 Abstract: Despite of several empirical evidences, the dividend policy issues are still puzzling and unresolved. Identification of the factors shaping the dividend payouts decisions is crucial for the corporate managers and it is even more crucial in banking sector especially in case of Nepal because most of the investors in the capital market invest in the shares of the banks. So, the empirical relationship between the dividend payouts and its determinants are stated as the research questions followed by the development of the hypotheses. The major objective of this study is to analyze the impact of ownership structure on dividend policy decisions of the commercial bank along with the examination of empirical relationship between them.
The major objective of the study is to determine the ownership factors affecting the dividend policy of Nepalese commercial banks. The study is based on secondary data of 15 commercial banks with 135 observations for the period of 2008 to 2016. The main source of data include various issues of Banking and Financial Statistics, Quarterly Economic Bulletin, Bank Supervision Report published by Nepal Rastra Bank and Annual Reports of selected commercial banks. For the representation of more reliable and adequate population in the sample, random sampling technique has been used in this study. The research design adopted in this study is descriptive research design.
The result shows that SCBL has highest average foreign ownershipof 75.00 percent and NIBL has highest institution ownership of 77.45 percentamong the selected commercial banks throughout the study period. Similarly, NIBL has highest average total assets of Rs. 74084.08 million percent, BOK has highest average leverage of 91.00 percent and NIBL has highest average ownership concentration of 50.89 percent.
The descriptive statistics shows that the average value of foreign ownership is 17.22 percent, institution ownership is 23.65 percent, total assets are 37744.79 million rupees, return on equity is 18.28 percent, ownership concentration is 21.57 percent and leverage is 86.48 percent. In same way, average value of liquidity is 10.81 percent. In one hand, average percentage of dividend per share is Rs. 23.65 and the average percentage of dividend payout ratio is 81.81 percent.
Among the ownership variables, the highest positive and significant correlation coefficient is recorded between dividend payout ratio and foreign ownership. The dividend payout ratio is also positively related with ROE and Size. The correlation between liquidity and dividend payout ratio is negative. Unlike others, institution ownership, ownership concentration and leverage are statistically insignificant with liquidity. Similarly, among the determinants of ownership variables of dividend per share, the highest positive and significant correlation coefficient is recorded between dividend per share and return on equity. Dividends per shares are also positively correlated with foreign ownership, institution ownership, ownership concentration, size and leverage. Similarly, the correlation between size and dividend per share is second higher in magnitude.
The regression results for dividend per share (DPS) shows that the beta coefficients for total assets, foreign ownership and return on equity are positive in all the equations. The negative coefficients have been observed for institution ownership, ownership concentration, leverage and liquidity. Similarly, higher the liquidity, lower would be the dividend per share as the negative coefficients have been observed for liquidity. Similarly, the regression results for dividend payout ratio shows the beta coefficients for foreign ownership, return on equity and size are positive. The negative coefficients have been observed for institution ownership, ownership concentration, leverage and liquidity.
Impact of ownership structure on dividend policy of Nepalese commercial banks [printed text] / Pooja Neupane, Author . - 2018 . - 89p. ; GRP/Thesis + 11/B.
Languages : English
Descriptors: Dividends Class number: 332.632 Abstract: Despite of several empirical evidences, the dividend policy issues are still puzzling and unresolved. Identification of the factors shaping the dividend payouts decisions is crucial for the corporate managers and it is even more crucial in banking sector especially in case of Nepal because most of the investors in the capital market invest in the shares of the banks. So, the empirical relationship between the dividend payouts and its determinants are stated as the research questions followed by the development of the hypotheses. The major objective of this study is to analyze the impact of ownership structure on dividend policy decisions of the commercial bank along with the examination of empirical relationship between them.
The major objective of the study is to determine the ownership factors affecting the dividend policy of Nepalese commercial banks. The study is based on secondary data of 15 commercial banks with 135 observations for the period of 2008 to 2016. The main source of data include various issues of Banking and Financial Statistics, Quarterly Economic Bulletin, Bank Supervision Report published by Nepal Rastra Bank and Annual Reports of selected commercial banks. For the representation of more reliable and adequate population in the sample, random sampling technique has been used in this study. The research design adopted in this study is descriptive research design.
The result shows that SCBL has highest average foreign ownershipof 75.00 percent and NIBL has highest institution ownership of 77.45 percentamong the selected commercial banks throughout the study period. Similarly, NIBL has highest average total assets of Rs. 74084.08 million percent, BOK has highest average leverage of 91.00 percent and NIBL has highest average ownership concentration of 50.89 percent.
The descriptive statistics shows that the average value of foreign ownership is 17.22 percent, institution ownership is 23.65 percent, total assets are 37744.79 million rupees, return on equity is 18.28 percent, ownership concentration is 21.57 percent and leverage is 86.48 percent. In same way, average value of liquidity is 10.81 percent. In one hand, average percentage of dividend per share is Rs. 23.65 and the average percentage of dividend payout ratio is 81.81 percent.
Among the ownership variables, the highest positive and significant correlation coefficient is recorded between dividend payout ratio and foreign ownership. The dividend payout ratio is also positively related with ROE and Size. The correlation between liquidity and dividend payout ratio is negative. Unlike others, institution ownership, ownership concentration and leverage are statistically insignificant with liquidity. Similarly, among the determinants of ownership variables of dividend per share, the highest positive and significant correlation coefficient is recorded between dividend per share and return on equity. Dividends per shares are also positively correlated with foreign ownership, institution ownership, ownership concentration, size and leverage. Similarly, the correlation between size and dividend per share is second higher in magnitude.
The regression results for dividend per share (DPS) shows that the beta coefficients for total assets, foreign ownership and return on equity are positive in all the equations. The negative coefficients have been observed for institution ownership, ownership concentration, leverage and liquidity. Similarly, higher the liquidity, lower would be the dividend per share as the negative coefficients have been observed for liquidity. Similarly, the regression results for dividend payout ratio shows the beta coefficients for foreign ownership, return on equity and size are positive. The negative coefficients have been observed for institution ownership, ownership concentration, leverage and liquidity.
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