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The Effect of Earnings Per Share and Dividend Per Share on the Market Price Per Share of Listed Commercial Banks on the Nepal Stock Exchange

Authors: Kamal Kumar Khadka; Laxman Prasad Gaire;

The Effect of Earnings Per Share and Dividend Per Share on the Market Price Per Share of Listed Commercial Banks on the Nepal Stock Exchange

Abstract

This study targeted to evaluating the impact of earnings per share (EPS) and dividend per share (DPS) on the market price per share (MPPS) of commercial banks that were listed on the Nepal stock exchange. Over a span of seven years, from 2016-2017 to 2022-2023, the study used a comprehensive dataset consisting of 210 panel data observations were meticulously compiled from the financial records of 10 commercial banks, selected from a total of 20 operating in Nepal. Descriptive statistics were conducted, and multiple linear regression models were also used to examine the effect of earnings per share and dividend per share on the market price per share. The findings of the regression analysis showed that while EPS and DPS account for 20.80 percent of the variation in MPPS, other factors account for 79.20 percent of the variation. Further, the outcome indicates that DPS and EPS have a statistically significant and favorable effect on MPPS. The study came to the conclusion that the DPS and EPS are important determinants of stock price and that they have a significant effect on Nepalese commercial banks' MPPS.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
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Average
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