| Title : | Impact of firm specific and macroeconomic factors on stock price of Nepalese commercial banks | | Material Type: | printed text | | Authors: | Sunita Guragain, Author | | Publication Date: | 2016 | | Pagination: | 103p. | | Size: | GRP/Thesis | | Accompanying material: | 8/B | | Languages : | English | | Descriptors: | Macroeconomics-Econometric models
| | Class number: | 332.632 | | Abstract: | Many studies have been undertaken to study the impact of firm specific and macro-economic factors on stock price in developed countries but in Nepal there are few studies which have been conducted on this issue. This study investigates the relationship between stock price, firm specific and macro-economic variables of selected Nepalese commercial banks. The stock price in the market is not static rather it changes every day. The most obvious factor that influence are demand and supply factors. The price of any commodity is affected by both micro-economic and macro-economic factors.
This study basically aimed to examines the impact of firm specific and macroeconomic factors on stock price of Nepalese commercial banks. The specific objectives of the study are: (a)What is the structure and pattern of market price per share, stock return and excess return of Nepalese commercial banks? How have they changed over a period of time? (b) What is the structure and pattern of bank size, earnings per share, dividend per share and return on assets of Nepalese commercial banks? How have they changed over a period of time? (c) What is the pattern of gross domestic product, inflation and interest rate? How have they changed over a period of time? (d) Is there any correlation of size, earnings per share, dividend per share and return on assets with market price per share of Nepalese commercial banks? (e) Whether the gross domestic product, inflation and interest rate are correlated with market price per share of Nepalese commercial banks? (f) Is there any impact of size, earnings per share, dividend per share and return on assets on market price per share of Nepalese commercial banks? (g) Is there any impact of gross domestic product, inflation and interest rate on market price per share of Nepalese commercial banks? (h)Which is the most influencing variable taken under study to explain the stock prices in Nepalese commercial banks?
The study is based on the secondary data which were gathered for 18 commercial banks in Nepal from 2007/08 to 2014/15 leading to the total of 144 observations. The data are collected from various issues of Banking and Financial Statistics and Quarterly Economic Bulletin published by Nepal Rastra Bank, annual report of central bureau of statistics (CBS) and annual reports of selected commercial banks.The dependent variables are market price per share, stock return and excess return whereas the independent variables are firm specific variables (earning per share, dividend per share, return on asset and size) and macroeconomic variables (gross domestic product, inflation and interest rate).Descriptive research design and causal comparative research design has been employed in order to analyze the impact of firm specific and macroeconomic variables on stock prices of commercial banks in Nepal.
The result of the study reveal that the market price of share is positively related to size and earnings per share. Similarly, there is positive relationship between market price of share and return on assets. Likewise, market price of share has positive relationship with dividend per share. The market price of share has positive relationship with inflation and gross domestic product. Similarly, market price of share is negatively related to interest rate. The stock return and excess return is positively related to size, dividend per share, interest rate and gross domestic product whereas negatively related to earning per share, returns on assets and inflation rate.The regression result reveals that the bank size and earnings per share have significant and positive impact on the market price of share where beta coefficients are significant at 1 percent level of significance. Similarly, return on asset have significant and positive relationship with share price where beta coefficients are significant at 1 percent level of significance. Likewise, the dividend per share and gross domestic product have positive and significant impact on share price. Similarly, it is found that the interest rate has negative and significant impact on the market price of share where beta coefficients are significant at 1 percent level of significance.
Besides this, there are other extraneous factors equally important that caused market price fluctuation. Therefore, banks/investors must look after all these factors which explicitly or implicitly affect stock price to arrive at rational decision. Finally Nepalese bankers and policy maker should pay adequate attentions to analyze the factors that make variation in stock price of the commercial banks.
|
Impact of firm specific and macroeconomic factors on stock price of Nepalese commercial banks [printed text] / Sunita Guragain, Author . - 2016 . - 103p. ; GRP/Thesis + 8/B. Languages : English | Descriptors: | Macroeconomics-Econometric models
| | Class number: | 332.632 | | Abstract: | Many studies have been undertaken to study the impact of firm specific and macro-economic factors on stock price in developed countries but in Nepal there are few studies which have been conducted on this issue. This study investigates the relationship between stock price, firm specific and macro-economic variables of selected Nepalese commercial banks. The stock price in the market is not static rather it changes every day. The most obvious factor that influence are demand and supply factors. The price of any commodity is affected by both micro-economic and macro-economic factors.
This study basically aimed to examines the impact of firm specific and macroeconomic factors on stock price of Nepalese commercial banks. The specific objectives of the study are: (a)What is the structure and pattern of market price per share, stock return and excess return of Nepalese commercial banks? How have they changed over a period of time? (b) What is the structure and pattern of bank size, earnings per share, dividend per share and return on assets of Nepalese commercial banks? How have they changed over a period of time? (c) What is the pattern of gross domestic product, inflation and interest rate? How have they changed over a period of time? (d) Is there any correlation of size, earnings per share, dividend per share and return on assets with market price per share of Nepalese commercial banks? (e) Whether the gross domestic product, inflation and interest rate are correlated with market price per share of Nepalese commercial banks? (f) Is there any impact of size, earnings per share, dividend per share and return on assets on market price per share of Nepalese commercial banks? (g) Is there any impact of gross domestic product, inflation and interest rate on market price per share of Nepalese commercial banks? (h)Which is the most influencing variable taken under study to explain the stock prices in Nepalese commercial banks?
The study is based on the secondary data which were gathered for 18 commercial banks in Nepal from 2007/08 to 2014/15 leading to the total of 144 observations. The data are collected from various issues of Banking and Financial Statistics and Quarterly Economic Bulletin published by Nepal Rastra Bank, annual report of central bureau of statistics (CBS) and annual reports of selected commercial banks.The dependent variables are market price per share, stock return and excess return whereas the independent variables are firm specific variables (earning per share, dividend per share, return on asset and size) and macroeconomic variables (gross domestic product, inflation and interest rate).Descriptive research design and causal comparative research design has been employed in order to analyze the impact of firm specific and macroeconomic variables on stock prices of commercial banks in Nepal.
The result of the study reveal that the market price of share is positively related to size and earnings per share. Similarly, there is positive relationship between market price of share and return on assets. Likewise, market price of share has positive relationship with dividend per share. The market price of share has positive relationship with inflation and gross domestic product. Similarly, market price of share is negatively related to interest rate. The stock return and excess return is positively related to size, dividend per share, interest rate and gross domestic product whereas negatively related to earning per share, returns on assets and inflation rate.The regression result reveals that the bank size and earnings per share have significant and positive impact on the market price of share where beta coefficients are significant at 1 percent level of significance. Similarly, return on asset have significant and positive relationship with share price where beta coefficients are significant at 1 percent level of significance. Likewise, the dividend per share and gross domestic product have positive and significant impact on share price. Similarly, it is found that the interest rate has negative and significant impact on the market price of share where beta coefficients are significant at 1 percent level of significance.
Besides this, there are other extraneous factors equally important that caused market price fluctuation. Therefore, banks/investors must look after all these factors which explicitly or implicitly affect stock price to arrive at rational decision. Finally Nepalese bankers and policy maker should pay adequate attentions to analyze the factors that make variation in stock price of the commercial banks.
|
|
Refine your search Apply to external sourcesImpact of bank specific and macroeconomic variables on the performance of commercial banks of Nepal / Rabi Shrestha
