Gaurishankar Multiple Campus
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IMPACT OF FINANCIAL RATIOS ON STOCK PRICE MOVEMENTS OF DEVELOPMENT BANKS IN NEPAL

The factors influencing Nepalese development banks’ share price are investigated in this study. Earnings per share, dividends per share, price-earnings ratio, book value per share, return on assets, and size were selected as firm-specific independent variables, while market price per share was chosen as the dependent variable. This research looks at how a firm-specific factor affects the share prices of Nepali commercial banks that are listed on the Nepal Stock Exchange between 2013–14 and 2022–23. Regression analysis was performed on the data that came from the sampled commercial banks’ annual reports. The findings showed that while dividend yield had a substantial adverse relationship with share price, earning per share and price-earnings ratios had a large positive influence on share price. The study’s main finding is that the most important variables affecting the share price of Nepalese development banks are market price per share, earnings per share, dividend per share, return on equity, non-performing loan, and return on asset, price – earnings ratio, correlation analysis, and regression analysis.