Factors Affecting Share Price of Nepalese Development Banks

Abstract

The primary purpose of the research was to investigate the variables that have an impact on the stock price of NEPSE, with a specific intention of focusing on a selected development banks. There have been a number of different financial and statistical tools which considered accomplishing the goal that was desired. Despite the fact that DPS, BVPS, and EPS all had a favorable influence on the MPS, the market price of the stock was also affected by a wide range of internal and external variables. From a theoretical standpoint, the market price per share is said to grow when earnings, dividends, and book value per share all increase, and it is said to decline when these factors decrease. On the other hand, the Nepalese stock exchange, also known as the NEPSE, did not fully support this core premise. Furthermore, the price of the shares is being influenced by a number of external variables too. According to the findings of the survey, herding behavior had a substantial impact on the trading price of the shares. Regardless of whether or not the reported expansion in the banking sector is supported by basic realities, the stock price of this sector tends to climb whenever there are rumors that the industry is experiencing growth. A number of basic parameters, including DPS, BVPS, and EPS, do not have a substantial influence on the MPS of Nepalese development banks