Title : | Impact of dividend yield, price earnings ratio, size, growth and return on equity on stock return of Nepalese commercial banks | Material Type: | printed text | Authors: | Sumitra Acharya, Author | Publication Date: | 2017 | Pagination: | 111p. | Size: | GRP/Thesis | Accompanying material: | 9/B | Languages : | English | Descriptors: | Stocks-Prices
| Class number: | 332.632 | Abstract: | Security market is an economic institution where sale and purchase transactions of securities between subjects of economy on the basis of demand and supply take place. It is a system of interconnection between all participants that provides effective conditions to buy and sell securities, to attract new capital by means of new security issuance, to transfer real assets into financial assets and to invest money for short or long term periods with the aim of deriving profit. The stock markets play a vital role in the financial sector of every economy which drives the economic growth by stabilizing the financial sector. It provides companies with the facility to raise capital for expansion through selling shares, raising capital for businesses, mobilizing savings for investment, facilitating company growth, creating investment opportunities for small investors and etc. The determination of the factors that stimulate the investments in the stock exchange markets has been well researched in the literature both theoretically and empirically.
Most of the empirical work investigates the impact of dividend yield, price earnings ratio, size, growth and return on equity on stock return mostly in the developed economy. However, such studies are lacking in the developing economy. Therefore, this study tries to investigate the impact of dividend yield, price earnings ratio, size, growth and return on equity on stock return from Nepalese commercial banks.
The major objective of the study is to examine explanatory power of dividend yield, price earnings ratio, size, growth and return on equity on stock return in the context of Nepalese commercial banks. The study is based on the secondary data of 18 Nepalese commercial banks for the period of 2007/08 to 2014/15 with a total of 144 observations. The main source of data includes various issues of annual reports of the respective commercial banks and insurance companies, NRB websites, NEPSE and Insurance Board websites. The pooled cross sectional data analysis has been undertaken in the study. The research design adopted in this study is descriptive and causal comparative research design as it deals with the impact of dividend yield, price earnings ratio, size, growth and return on equity on stock return on stock market effect of Nepalese commercial banks.
The result shows that market price per share of commercial banks have positive relation with earning per share, dividend per share, dividend yield, price earnings ratio, size, growth and return on equity. Similarly, stock return has positive relationship with earning per share, dividend per share, price earnings ratio, size, growth and return on equity. However, dividend yield has negative relationship with stock return.The study reveals that dividend yield has negative impact on stock return of Nepalese commercial banks. However, dividend per share has positive impact on the market price of share of commercial banks. The study also reveals that earning per share has positive impact on market price of share and stock return of the Nepalese commercial banks. Similarly, the study reveals that dividend yield has positive impact on market price of share and stock return. Likewise, the study reveals that price earnings ratio has positive impact on market price of share and stock return. The study also shows that size has positive impact on market price of share and stock return.
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Impact of dividend yield, price earnings ratio, size, growth and return on equity on stock return of Nepalese commercial banks [printed text] / Sumitra Acharya, Author . - 2017 . - 111p. ; GRP/Thesis + 9/B. Languages : English Descriptors: | Stocks-Prices
| Class number: | 332.632 | Abstract: | Security market is an economic institution where sale and purchase transactions of securities between subjects of economy on the basis of demand and supply take place. It is a system of interconnection between all participants that provides effective conditions to buy and sell securities, to attract new capital by means of new security issuance, to transfer real assets into financial assets and to invest money for short or long term periods with the aim of deriving profit. The stock markets play a vital role in the financial sector of every economy which drives the economic growth by stabilizing the financial sector. It provides companies with the facility to raise capital for expansion through selling shares, raising capital for businesses, mobilizing savings for investment, facilitating company growth, creating investment opportunities for small investors and etc. The determination of the factors that stimulate the investments in the stock exchange markets has been well researched in the literature both theoretically and empirically.
Most of the empirical work investigates the impact of dividend yield, price earnings ratio, size, growth and return on equity on stock return mostly in the developed economy. However, such studies are lacking in the developing economy. Therefore, this study tries to investigate the impact of dividend yield, price earnings ratio, size, growth and return on equity on stock return from Nepalese commercial banks.
The major objective of the study is to examine explanatory power of dividend yield, price earnings ratio, size, growth and return on equity on stock return in the context of Nepalese commercial banks. The study is based on the secondary data of 18 Nepalese commercial banks for the period of 2007/08 to 2014/15 with a total of 144 observations. The main source of data includes various issues of annual reports of the respective commercial banks and insurance companies, NRB websites, NEPSE and Insurance Board websites. The pooled cross sectional data analysis has been undertaken in the study. The research design adopted in this study is descriptive and causal comparative research design as it deals with the impact of dividend yield, price earnings ratio, size, growth and return on equity on stock return on stock market effect of Nepalese commercial banks.
The result shows that market price per share of commercial banks have positive relation with earning per share, dividend per share, dividend yield, price earnings ratio, size, growth and return on equity. Similarly, stock return has positive relationship with earning per share, dividend per share, price earnings ratio, size, growth and return on equity. However, dividend yield has negative relationship with stock return.The study reveals that dividend yield has negative impact on stock return of Nepalese commercial banks. However, dividend per share has positive impact on the market price of share of commercial banks. The study also reveals that earning per share has positive impact on market price of share and stock return of the Nepalese commercial banks. Similarly, the study reveals that dividend yield has positive impact on market price of share and stock return. Likewise, the study reveals that price earnings ratio has positive impact on market price of share and stock return. The study also shows that size has positive impact on market price of share and stock return.
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