Fundamentals of Common Stock Pricing: Evidence from Commercial Banks of Nepal

Authors

  • Dipendra Karki Nepal Commerce Campus

DOI:

https://doi.org/10.3126/nccj.v3i1.20247

Keywords:

Dividend, Earnings per share, Fixed Effect Model, Stock price

Abstract

This study relates cross-sectional differences in stock prices of Nepalese commercial banks to the underlying behavior of six fundamental variables: earnings per share, book value per share, cash dividend per share, stock dividend per share, price earnings ratio, and firm size. This study uses secondary sources of data. The balanced panel data from commercial banks including 150 observations are used for the period of 2000-2014. The earnings per share and stock dividend per share are the more significant determinants of stock prices of commercial banks in Nepal. The performance of the stock dividend is especially noteworthy; this variable is statistically and economically the most important of the six fundamental variables investigated.

NCC Journal

Vol. 3, No. 1, 2018, page: 44-64

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Author Biography

Dipendra Karki, Nepal Commerce Campus

Lecturer

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Published

2018-06-14

How to Cite

Karki, D. (2018). Fundamentals of Common Stock Pricing: Evidence from Commercial Banks of Nepal. NCC Journal, 3(1), 44–64. https://doi.org/10.3126/nccj.v3i1.20247

Issue

Vol. 3 No. 1 (2018)

Section

Articles

License

© Nepal Commerce Campus, Tribhuvan University

CC BY-NC: This license enables reusers to distribute, remix, adapt, and build upon the material in any medium or format for noncommercial purposes only, and only so long as attribution is given to the creator.