Himalaya Ban[1],
Kalpana Parajuli, Kushal Shrestha and Manish Bhattarai
Abstract
This paper examines the determinants of
stock price in Nepalese enterprises, related with commercial banks, hydropower
and hotel companies. The market price per share is taken as the sole dependent variable
and firm specific variable Cash dividend per share, Stock dividend per share,
Retained earnings, Earning Per Share, Return on Assets, and macro-economic
variable Inflation and Economic growth are taken as independent variable. The
data are collected from the Banking and Financial Statistics, Banking
Supervision report published by Nepal Rastra Bank ,NRB and Annual Report
published by Securities Board of Nepal, SEBON from 2063/64 to 2068/69. The
multiple regression models are applied to test the significance and identify
relationship between the Market Price per share and independent variables.
The results show that there is positive
significant impact of Cash Dividend Per Share and Economic growth on Market
Price Per Share in Commercial Bank; positive significant impact of Earning Per
Share and Economic Growth with Market Price per share in Hotel Enterprises; and
positive significant impact of Return on Assets and Economic growth with Market
price per share in Hydropower Enterprises. In totality Earning Per share and
Economic growth have positive significant impact with Market Price per share in
Commercial Banks, Hotel and Hydropower Enterprises.
Keywords: Market Price Per
Share, Cash Dividend Per Share, Stock Dividend Per Share, Earning Per Share,
Return on Assets, Retained Earnings, Inflation, Economic Growth.
[1]Himalaya
Ban is a lecturer at Kathmandu University and he can be reached at
himalayaban@gmail.com
*The paper on the same topic was
presented at Uniglobe International Conference II, Contemporary Issues &
Challenges in Management, Hyatt Regency, Kathmandu, November 17-18, 2014
