| Title : | Factors affecting the share price of Nepalese commercial banks | | Material Type: | printed text | | Authors: | Subash Dahal, Author | | Publication Date: | 2015 | | Pagination: | 73p. | | Size: | GRP/Thesis | | Accompanying material: | 5/B | | General note: | Including bibilography | | Languages : | English | | Descriptors: | Banks
Banks and banking
Commercial banks
Share-Price
| | Keywords: | 'share price earning per share market price per share return on assets' | | Class number: | 332.632 | | Abstract: | Many studies have been undertaken to study on factors affecting the share price in development countries but in Nepal there are few studies which have been conducted on this issue. This study investigates the relationship between share price, bank specific and micro-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 empirical relationship between the stock price, bank specific and micro-economic variables of selected Nepalese commercial banks. The specific objectives of the study are: (a) what is the structure and pattern of MPS, EPS, DPS, P/E ratio, BVPS, ROA, and size Nepalese commercial banks? How they have changed over the time period? (b)What is the structure and pattern of Gross domestic product, inflation and money supply Nepalese commercial banks? How they have changed over the time period? (c)Is there any relationship between EPS, P/E ratio, BVPS and MPS? (d)Does dividend have any effect to the stock price? (e)How does size and profitability of a firm affect share price? (f)What is the affect of GDP, inflation and money supply on stock price in Nepalese commercial bank? (g)Which variable account most in determining the share price? (h) To provide the suggestion based on the research finding. This study is basically based on the analysis of secondary data. The data for firm specific variables including stock market data have been obtained from financial statement of sample firms recorded in the database of Nepal Stock Exchange (NEPSE) Limited and Securities Board of Nepal (SEBON) provided in their respective website. NEPSE and SEBON have maintained the record of specific financial data from the fiscal year 2003 to 2014 in their respective database in websites. The annual data series on macroeconomic variables such as GDP, inflation and money supply have been obtained from websites of World Bank. For data analyzing the relationship, market share price is used as a dependent variable. EPS, DPS, P/E ratio, BVPS, ROA and size are used as firm specific independent variables. GDP, inflation and money supply are used as macroeconomic independent variables. Beside, the study also used descriptive statistics to analyze the views of financial executives, which mainly focus on the qualitative part of the major aspect of the market share price. The result of the study showed that joint ventures have higher market share price than non-joint venture. The major conclusion of this study is the firm specific variables such as earnings per share, dividend per share, price earnings ratio, book value per share, return on assets and size are positively related with market price per share. Similarly, this study shows that macroeconomic variables like gross domestic product, inflation and money supply are positively related with market price per share. The study found that gross domestic product and firm size are the major determinant of market price per share in comparison to other explanatory variables. 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. |
Factors affecting the share price of Nepalese commercial banks [printed text] / Subash Dahal, Author . - 2015 . - 73p. ; GRP/Thesis + 5/B. Including bibilography Languages : English | Descriptors: | Banks
Banks and banking
Commercial banks
Share-Price
| | Keywords: | 'share price earning per share market price per share return on assets' | | Class number: | 332.632 | | Abstract: | Many studies have been undertaken to study on factors affecting the share price in development countries but in Nepal there are few studies which have been conducted on this issue. This study investigates the relationship between share price, bank specific and micro-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 empirical relationship between the stock price, bank specific and micro-economic variables of selected Nepalese commercial banks. The specific objectives of the study are: (a) what is the structure and pattern of MPS, EPS, DPS, P/E ratio, BVPS, ROA, and size Nepalese commercial banks? How they have changed over the time period? (b)What is the structure and pattern of Gross domestic product, inflation and money supply Nepalese commercial banks? How they have changed over the time period? (c)Is there any relationship between EPS, P/E ratio, BVPS and MPS? (d)Does dividend have any effect to the stock price? (e)How does size and profitability of a firm affect share price? (f)What is the affect of GDP, inflation and money supply on stock price in Nepalese commercial bank? (g)Which variable account most in determining the share price? (h) To provide the suggestion based on the research finding. This study is basically based on the analysis of secondary data. The data for firm specific variables including stock market data have been obtained from financial statement of sample firms recorded in the database of Nepal Stock Exchange (NEPSE) Limited and Securities Board of Nepal (SEBON) provided in their respective website. NEPSE and SEBON have maintained the record of specific financial data from the fiscal year 2003 to 2014 in their respective database in websites. The annual data series on macroeconomic variables such as GDP, inflation and money supply have been obtained from websites of World Bank. For data analyzing the relationship, market share price is used as a dependent variable. EPS, DPS, P/E ratio, BVPS, ROA and size are used as firm specific independent variables. GDP, inflation and money supply are used as macroeconomic independent variables. Beside, the study also used descriptive statistics to analyze the views of financial executives, which mainly focus on the qualitative part of the major aspect of the market share price. The result of the study showed that joint ventures have higher market share price than non-joint venture. The major conclusion of this study is the firm specific variables such as earnings per share, dividend per share, price earnings ratio, book value per share, return on assets and size are positively related with market price per share. Similarly, this study shows that macroeconomic variables like gross domestic product, inflation and money supply are positively related with market price per share. The study found that gross domestic product and firm size are the major determinant of market price per share in comparison to other explanatory variables. 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. |
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