Expected stock returns of NEPSE: evidence from Nepalese bank / Dinesh Kiorala 

Public ISBD Title : Expected stock returns of NEPSE: evidence from Nepalese bank Material Type: printed text Authors: Dinesh Kiorala, Author Publication Date: 2013 Pagination: 111p. Size: GRP/Thesis Accompanying material: 1/B General note: Including bibilography Languages : English Descriptors: Common stock Investment Nepal Nepal Stock Exchange Profits Rate of return Stock exchange Stocks Keywords: 'stocks  banks  bank and banking  profits  common stock  stocks  nepal  investment  rate of return' Class number: 332.642 Abstract: The study on expected stock returns provides an important insight into the understanding of pricing implication of common stock. This study basically aimed at examining the variations in common stock returns with respect to firm specific variables and also attempted to evaluate the causal relationship between stock market returns and macroeconomic variables in Nepal. The specific objectives of the study are: (a) to examine the stock return in Nepalese stock market, (b) to analyze the factors that influence the stock return, (c) to examine the relationship between company specific variables and expected return, (d) to assess the impact of company specific variables on expected return on NEPSE and compare the results with the evidence of developed countries, (e) to analyze the views of chief executives, mangers, financial officer and operation officer regarding the level of stock return. The proposed study could be used by financial institutions, researchers, policy makers, and mangers to examine and understand behavior of stock return in context of Nepal. Present study focused on the limitation as study includes only the selected commercial banks. Although this study used the earliest data available for the NEPSE, still had a work on a much smaller sample of returns as compared to the tests conducted on established markets such as the New York Stock Exchange or the Tokyo Stock Exchange? Hence, power of this study test may not be applicable all over the world. The analysis of the one-way sort of portfolios on stock beta, size, earnings-to-price ratios, book to market ratio, and sales to price ratio shows that larger bank size, beta, book to market ratio, sales to price ratio have higher returns, where as the firms with higher earning to price ratio have lower returns. The results indicate that variability associated with stock returns is larger for the bank with larger size, higher stock beta, book to market ratio, sales to price ratio while it is lower for the banks with high earning to price ratios. In a multiple regression of complete form, where all explanatory variables have been included, size, DY and BMR are found to have significant explanatory power while beta and EPR are not significant. The model's explanatory power is 80% and coefficient of Size and DY is positive. The regression estimates as well as portfolio analysis reveal that Size, DY and BMR are the three major variables, which explain the stock returns, and out of three variables, DY is the major explaining variable in the Nepalese stock market during the period of study. The study results showed that the coefficient of beta is never significant and it does not explain variation of stock returns. Therefore, the chief executive, mangers and officers should not base their decisions on beta alone. They should consider multiple risk factors in their decisions, of which size; DY and BMR are the most dominant ones. As the study results revealed that since size is positively related to stock returns, the firms willing to increase stock returns should increase its size. Since DY, as shown by the study, is linear with stock returns, the firms should increase the DY to increase the stock returns. The study results illustrate that the firms willing to increase stock returns should maintain lower sales to price ratio as SPR is negatively related to stock returns. The study results revealed that since BMR is negatively related to stock returns, the firms should maintain lower BMR for higher stock returns. As the study results showed that the major decisions of finance is dividend to increase stock returns, therefore, the firms willing to increase stock returns should focus their decision on dividend. With respect to decision priority to maximize return majority of the respondents gave the first priority to dividend decisions, second priority to investment decisions and third priority to financing decisions. So, the firms should increase the dividend to increase the stock returns. Majority of the respondents feel firm size of the bank as the most important factors influencing common stock returns in Nepal, followed by dividend yield. In sum up, the major findings of this study can add value to the existing literature. It may help decision makers at bank to focus on major banking activities that may increase the stock return with other competitive banks. This may also help management of commercial bank in creating appropriate strategies for attaining the estimated stock return in context of Nepal. Expected stock returns of NEPSE: evidence from Nepalese bank [printed text] / Dinesh Kiorala, Author . - 2013 . - 111p. ; GRP/Thesis + 1/B. Including bibilography Languages : English Descriptors: Common stock Investment Nepal Nepal Stock Exchange Profits Rate of return Stock exchange Stocks Keywords: 'stocks  banks  bank and banking  profits  common stock  stocks  nepal  investment  rate of return' Class number: 332.642 Abstract: The study on expected stock returns provides an important insight into the understanding of pricing implication of common stock. This study basically aimed at examining the variations in common stock returns with respect to firm specific variables and also attempted to evaluate the causal relationship between stock market returns and macroeconomic variables in Nepal. The specific objectives of the study are: (a) to examine the stock return in Nepalese stock market, (b) to analyze the factors that influence the stock return, (c) to examine the relationship between company specific variables and expected return, (d) to assess the impact of company specific variables on expected return on NEPSE and compare the results with the evidence of developed countries, (e) to analyze the views of chief executives, mangers, financial officer and operation officer regarding the level of stock return. The proposed study could be used by financial institutions, researchers, policy makers, and mangers to examine and understand behavior of stock return in context of Nepal. Present study focused on the limitation as study includes only the selected commercial banks. Although this study used the earliest data available for the NEPSE, still had a work on a much smaller sample of returns as compared to the tests conducted on established markets such as the New York Stock Exchange or the Tokyo Stock Exchange? Hence, power of this study test may not be applicable all over the world. The analysis of the one-way sort of portfolios on stock beta, size, earnings-to-price ratios, book to market ratio, and sales to price ratio shows that larger bank size, beta, book to market ratio, sales to price ratio have higher returns, where as the firms with higher earning to price ratio have lower returns. The results indicate that variability associated with stock returns is larger for the bank with larger size, higher stock beta, book to market ratio, sales to price ratio while it is lower for the banks with high earning to price ratios. In a multiple regression of complete form, where all explanatory variables have been included, size, DY and BMR are found to have significant explanatory power while beta and EPR are not significant. The model's explanatory power is 80% and coefficient of Size and DY is positive. The regression estimates as well as portfolio analysis reveal that Size, DY and BMR are the three major variables, which explain the stock returns, and out of three variables, DY is the major explaining variable in the Nepalese stock market during the period of study. The study results showed that the coefficient of beta is never significant and it does not explain variation of stock returns. Therefore, the chief executive, mangers and officers should not base their decisions on beta alone. They should consider multiple risk factors in their decisions, of which size; DY and BMR are the most dominant ones. As the study results revealed that since size is positively related to stock returns, the firms willing to increase stock returns should increase its size. Since DY, as shown by the study, is linear with stock returns, the firms should increase the DY to increase the stock returns. The study results illustrate that the firms willing to increase stock returns should maintain lower sales to price ratio as SPR is negatively related to stock returns. The study results revealed that since BMR is negatively related to stock returns, the firms should maintain lower BMR for higher stock returns. As the study results showed that the major decisions of finance is dividend to increase stock returns, therefore, the firms willing to increase stock returns should focus their decision on dividend. With respect to decision priority to maximize return majority of the respondents gave the first priority to dividend decisions, second priority to investment decisions and third priority to financing decisions. So, the firms should increase the dividend to increase the stock returns. Majority of the respondents feel firm size of the bank as the most important factors influencing common stock returns in Nepal, followed by dividend yield. In sum up, the major findings of this study can add value to the existing literature. It may help decision makers at bank to focus on major banking activities that may increase the stock return with other competitive banks. This may also help management of commercial bank in creating appropriate strategies for attaining the estimated stock return in context of Nepal.

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Determinants of banks lending behavior: a survey of selected commercial banks in Nepal / Rakshya Gautam 

Public ISBD Title : Determinants of banks lending behavior: a survey of selected commercial banks in Nepal Material Type: printed text Authors: Rakshya Gautam, Author Publication Date: 2013 Pagination: 78p. Size: GRP/Thesis Accompanying material: 2/D General note: Including bibliography Languages : English Descriptors: Bank and banking Bank loans Commercial banks Nepal Keywords: 'banks lending behavior  Commercial banks  Nepal  Bank and banking  financial institutions' Class number: 332.175 Abstract: Bank lending behavior of the bank can be defined as the preferences and choices of bank while making loans and advances. In other words, bank lending behavior is the selection of bank’s investment on loans and advances on the account of constraints given by regulators, opportunities or threats provided by macroeconomic, factors and the preferences of customers etc. This study investigates the determinants of bank lending behavior of selected Nepalese commercial banks. The specific objectives of this study were to examine the effect of deposit growth rate, bank discount rate, cash reserve ratio, GDP, CD ratio, ROA, lagged LOA and interest spread on bank loans and advances, to analyze the impact of deposit growth, capital growth, and non-performing loan growth rate, earning assets growth rate on loan growth rate of the banks, to access the impact of input price of deposit, input price of equipment/ fixed capital, capitalization ratio, loans and advances and log of total assets on the output price of loan, to assess the views of bank employees on lending behavior of the bank. The research was based on primary and secondary data. The methods used for secondary data analysis included descriptive statistics, regression analysis, etc. Similarly the methods used for primary data analysis included percentage frequency distribution, mean scores, standard deviation and likert scale. The major conclusion of the study is that bank discount rate, GDP, CD ratio, LOA lagged and WAIS explain the loans and advances in the context of Nepalese commercial banks. Similarly in the case of loan growth rate deposit growth rate, earning assets growth rate are the important and significant explanatory variables. Similarly input price of deposit and input price of equipment explains the output price of loan in case of Nepal. Therefore banks should strive hard to manage their deposits and earning assets efficiently so that their objective of profitability can be achieved and input price of deposit and input price of equipment explain the output price of loan. Similarly in the case of primary study, the study concludes that liquidity position of the market have strong impact on bank lending behavior. Similarly there should not be mismatch between the input price of deposit and output price of loan. And in Nepalese commercial banks there is moderate effect of nonperforming loan on bank lending. Among the macro economic variables bank lending rate is ranked as the most important factor which supports the result of secondary analysis. GDP is ranked as least important factor in primary analysis where as it plays an important role in secondary analysis. Respondents ranked deposit growth rate as most important factor affecting the loan growth rate which supports the result of secondary analysis. Determinants of banks lending behavior: a survey of selected commercial banks in Nepal [printed text] / Rakshya Gautam, Author . - 2013 . - 78p. ; GRP/Thesis + 2/D. Including bibliography Languages : English Descriptors: Bank and banking Bank loans Commercial banks Nepal Keywords: 'banks lending behavior  Commercial banks  Nepal  Bank and banking  financial institutions' Class number: 332.175 Abstract: Bank lending behavior of the bank can be defined as the preferences and choices of bank while making loans and advances. In other words, bank lending behavior is the selection of bank’s investment on loans and advances on the account of constraints given by regulators, opportunities or threats provided by macroeconomic, factors and the preferences of customers etc. This study investigates the determinants of bank lending behavior of selected Nepalese commercial banks. The specific objectives of this study were to examine the effect of deposit growth rate, bank discount rate, cash reserve ratio, GDP, CD ratio, ROA, lagged LOA and interest spread on bank loans and advances, to analyze the impact of deposit growth, capital growth, and non-performing loan growth rate, earning assets growth rate on loan growth rate of the banks, to access the impact of input price of deposit, input price of equipment/ fixed capital, capitalization ratio, loans and advances and log of total assets on the output price of loan, to assess the views of bank employees on lending behavior of the bank. The research was based on primary and secondary data. The methods used for secondary data analysis included descriptive statistics, regression analysis, etc. Similarly the methods used for primary data analysis included percentage frequency distribution, mean scores, standard deviation and likert scale. The major conclusion of the study is that bank discount rate, GDP, CD ratio, LOA lagged and WAIS explain the loans and advances in the context of Nepalese commercial banks. Similarly in the case of loan growth rate deposit growth rate, earning assets growth rate are the important and significant explanatory variables. Similarly input price of deposit and input price of equipment explains the output price of loan in case of Nepal. Therefore banks should strive hard to manage their deposits and earning assets efficiently so that their objective of profitability can be achieved and input price of deposit and input price of equipment explain the output price of loan. Similarly in the case of primary study, the study concludes that liquidity position of the market have strong impact on bank lending behavior. Similarly there should not be mismatch between the input price of deposit and output price of loan. And in Nepalese commercial banks there is moderate effect of nonperforming loan on bank lending. Among the macro economic variables bank lending rate is ranked as the most important factor which supports the result of secondary analysis. GDP is ranked as least important factor in primary analysis where as it plays an important role in secondary analysis. Respondents ranked deposit growth rate as most important factor affecting the loan growth rate which supports the result of secondary analysis.

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Determinants of profitability of commercial banks in Nepal / Sangeeta Shrestha 

Public ISBD Title : Determinants of profitability of commercial banks in Nepal Material Type: printed text Authors: Sangeeta Shrestha, Author Publication Date: 2013 Pagination: 92p. Size: GRP/Thesis Accompanying material: 1/B General note: Including bibliography Languages : English Descriptors: Bank profits Banks and banking Commercial banks Nepal Profit Keywords: 'profitability  profits  banks  banks and banking  commercial banks  nepal  sangeeta shrestha  profit' Class number: 338.709 Determinants of profitability of commercial banks in Nepal [printed text] / Sangeeta Shrestha, Author . - 2013 . - 92p. ; GRP/Thesis + 1/B. Including bibliography Languages : English Descriptors: Bank profits Banks and banking Commercial banks Nepal Profit Keywords: 'profitability  profits  banks  banks and banking  commercial banks  nepal  sangeeta shrestha  profit' Class number: 338.709

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Market structure and performance of commercial banks in Nepal / Manju Adhikari 

Public ISBD Title : Market structure and performance of commercial banks in Nepal Material Type: printed text Authors: Manju Adhikari, Author Publication Date: 2014 Pagination: 110p. Size: GRP/Thesis Accompanying material: 1/B General note: Including bibliography Languages : English Descriptors: Banks Banks and banking Commercial banks Industrial organization (Economic theory) Markets Nepal Keywords: 'market structure  banks  bank and banking  markets  nepal  commercial bank' Class number: 338.6 Abstract: Bank performance has substantive repercussion on investment, firm growth, industrial expansion, and economic development. Thus, study on the banking system, market structure and performance has important policy implications. Therefore, this study is particularly relevant for Nepalese economy given the high degree of concentration in its banking market. The importance of conducting this study is to provide empirical evidence on the market structure and performance of listed commercial banks in Nepal. Hence, the outcome of the study will help the country’s regulator in formation of policy to deal with unexpected change in financial conditions, capital adequacy regulations and other factors that might affects the bank’s performance. The main objective of this study is to examine the relationship between the market structure and financial performance of Nepalese commercial banks. The Specific objectives are to examine the impact of the market structure on profitability of Nepalese commercial banks, to study the major roles of the determinants of the performance of Nepalese commercial banks, to examine the impact of ownership on the efficiency of commercial banks in Nepal and to analysis how cost efficiency influence the performance of the commercial banking and to analyze effect of market structure in enhancing the performance of commercial banks in Nepal. This study has employed descriptive and casual comparative research designs to deal with the fundamental issues associated with the market structure and performance of commercial banks in Nepal. Moreover, this study depends on correlation research design in order to determine the direction and magnitude of the correlation among the dependent variable i.e. banks’ performance and the independent variables. So, this study employed the relationship between ROA, ROE, market value, total assets, C/D ratio, credit risk as measured by NPL/Total loan, liquidity risk measured by CRR, and Cost efficiency as measured by total revenue/total cost with the help of correlation research design. The structured questionnaire survey has been conducted to collect and record the opinions and perception of bankers regarding the determinants of banks’ performance and market structure. For secondary data analysis the essential data have collected for each year from 2001/02 to 2012/13 of selected banks. The result of this study found that among the determinants of ROA, the highest positive and significant correlation coefficient is recorded between C/D ratio and total assets. Among the determinants of ROE, the highest negative and significant correlation coefficient is recorded between credit risk and total assets. The regression result shows that only credit risk, liquidity risk and total assets positively and significantly influence return on assets. However, the models estimated are good as revealed by F-statistics and coefficients of multiple determinations (R2).Likewise, the regression result of ROE and its determinants find out that even though all the variables are positively related with ROE but only market value is significantly related with ROE. This means that only market value influence ROE. Analysis of Primary Data revealed that the level of profit in the selected banks is moderate. The survey indicates that majority of respondents accepted that the recent changes in banking and investment regulations in Nepal affects banking activities and its expansion. The central bank regulation and policies is the major factors that make changes in Nepalese banking industry over past decades. Credit risk is the most important factors affecting the performance of the banks followed by cost efficiency, market share, total assets, C/D ratio and liquidity risk respectively. Likewise, it is found that profitability is the primary goal of commercial banks of Nepal and without profitability bank will not survive for the long run. Similarly, trend in bank profitability and factor affecting it are major indicator of changes in the state of health of national banking system and the current profitability of commercial banks of Nepal is sufficient in order to survive for the long run. Majority of the respondent feel that Banks would improve profitability by improving screening and monitoring of credit risk and such policies involve the forecasting of future levels of risk. It is also found that Bank having higher cost efficiency shows lower profitability and the profitability of commercial banks in Nepal is not good as expected due to corruption, lack of proper policy and guidelines, higher lending on non-productive sectors, and lack of good corporate governance. The major conclusion of this study is that banks with high market value per share have higher return on assets and large size banks have high return on asset. With respect to cost efficiency, credit risk, liquidity risks, size, credit deposit ratio shows a positive pattern of movement in return on asset was observed. Further, the result shows that return on equity also increases with Liquidity risk and size on one way sort portfolio. Finally ROA is significantly influence by liquidity risk, credit risk and total assets and ROE is influenced by market value of the banks. Market structure and performance of commercial banks in Nepal [printed text] / Manju Adhikari, Author . - 2014 . - 110p. ; GRP/Thesis + 1/B. Including bibliography Languages : English Descriptors: Banks Banks and banking Commercial banks Industrial organization (Economic theory) Markets Nepal Keywords: 'market structure  banks  bank and banking  markets  nepal  commercial bank' Class number: 338.6 Abstract: Bank performance has substantive repercussion on investment, firm growth, industrial expansion, and economic development. Thus, study on the banking system, market structure and performance has important policy implications. Therefore, this study is particularly relevant for Nepalese economy given the high degree of concentration in its banking market. The importance of conducting this study is to provide empirical evidence on the market structure and performance of listed commercial banks in Nepal. Hence, the outcome of the study will help the country’s regulator in formation of policy to deal with unexpected change in financial conditions, capital adequacy regulations and other factors that might affects the bank’s performance. The main objective of this study is to examine the relationship between the market structure and financial performance of Nepalese commercial banks. The Specific objectives are to examine the impact of the market structure on profitability of Nepalese commercial banks, to study the major roles of the determinants of the performance of Nepalese commercial banks, to examine the impact of ownership on the efficiency of commercial banks in Nepal and to analysis how cost efficiency influence the performance of the commercial banking and to analyze effect of market structure in enhancing the performance of commercial banks in Nepal. This study has employed descriptive and casual comparative research designs to deal with the fundamental issues associated with the market structure and performance of commercial banks in Nepal. Moreover, this study depends on correlation research design in order to determine the direction and magnitude of the correlation among the dependent variable i.e. banks’ performance and the independent variables. So, this study employed the relationship between ROA, ROE, market value, total assets, C/D ratio, credit risk as measured by NPL/Total loan, liquidity risk measured by CRR, and Cost efficiency as measured by total revenue/total cost with the help of correlation research design. The structured questionnaire survey has been conducted to collect and record the opinions and perception of bankers regarding the determinants of banks’ performance and market structure. For secondary data analysis the essential data have collected for each year from 2001/02 to 2012/13 of selected banks. The result of this study found that among the determinants of ROA, the highest positive and significant correlation coefficient is recorded between C/D ratio and total assets. Among the determinants of ROE, the highest negative and significant correlation coefficient is recorded between credit risk and total assets. The regression result shows that only credit risk, liquidity risk and total assets positively and significantly influence return on assets. However, the models estimated are good as revealed by F-statistics and coefficients of multiple determinations (R2).Likewise, the regression result of ROE and its determinants find out that even though all the variables are positively related with ROE but only market value is significantly related with ROE. This means that only market value influence ROE. Analysis of Primary Data revealed that the level of profit in the selected banks is moderate. The survey indicates that majority of respondents accepted that the recent changes in banking and investment regulations in Nepal affects banking activities and its expansion. The central bank regulation and policies is the major factors that make changes in Nepalese banking industry over past decades. Credit risk is the most important factors affecting the performance of the banks followed by cost efficiency, market share, total assets, C/D ratio and liquidity risk respectively. Likewise, it is found that profitability is the primary goal of commercial banks of Nepal and without profitability bank will not survive for the long run. Similarly, trend in bank profitability and factor affecting it are major indicator of changes in the state of health of national banking system and the current profitability of commercial banks of Nepal is sufficient in order to survive for the long run. Majority of the respondent feel that Banks would improve profitability by improving screening and monitoring of credit risk and such policies involve the forecasting of future levels of risk. It is also found that Bank having higher cost efficiency shows lower profitability and the profitability of commercial banks in Nepal is not good as expected due to corruption, lack of proper policy and guidelines, higher lending on non-productive sectors, and lack of good corporate governance. The major conclusion of this study is that banks with high market value per share have higher return on assets and large size banks have high return on asset. With respect to cost efficiency, credit risk, liquidity risks, size, credit deposit ratio shows a positive pattern of movement in return on asset was observed. Further, the result shows that return on equity also increases with Liquidity risk and size on one way sort portfolio. Finally ROA is significantly influence by liquidity risk, credit risk and total assets and ROE is influenced by market value of the banks.

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Risk management practices: a survey of commercial banks in Nepal / Dipesh Banepali 

Public ISBD Title : Risk management practices: a survey of commercial banks in Nepal Material Type: printed text Authors: Dipesh Banepali, Author Publication Date: 2013 Pagination: 78p. Size: GRP/Thesis Accompanying material: 1/B General note: Including bibliography Languages : English Descriptors: Bank management Banks and banking Commercial banks Nepal Risk management Keywords: 'risk management  bank management banks  commercial banks  nepal  deepesh banepali' Class number: 332.106 Risk management practices: a survey of commercial banks in Nepal [printed text] / Dipesh Banepali, Author . - 2013 . - 78p. ; GRP/Thesis + 1/B. Including bibliography Languages : English Descriptors: Bank management Banks and banking Commercial banks Nepal Risk management Keywords: 'risk management  bank management banks  commercial banks  nepal  deepesh banepali' Class number: 332.106

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The impact of human resources management practices on turnover of banks employees in Nepal / Sunil Thapa

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Relationship between capital and risks in Nepalese commercial banks / Bishnu Sapkota 

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Customer's attitudes towards internet banking service: evidence from Nepalese commercial banks / Puspana Kafle 

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Customer satisfaction with Internet banking services: evidence from Nepalese commercial banks / Rupa Maharjan 

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Determinants of capital structure in selected Nepalese bank / Subin Shrestha 

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