Factors affecting stock price in nepalese stock market

Abstract

This study aims to identify the impact of internal factors on stock prices of listed firms in Nepal Stock Exchange (NEPSE) using survey method adopting descriptive and analytical research design.. Population size of the study is 226 listed firms in NEPSE and sample size is consists of 60 firms located in Kathmandu. Data were collected using survey questionnaire Likert type questionnaire representing 1 for strongly disagree and 5 strongly agree. The study used random sampling method. The descriptive research design is used for the purpose of facts finding, conceptualization, and description of variables of the study. In this study, stock price is considered as dependent variable and dividend policy, management quality, financial position, firm size, and nature of firms are explanatory variables. This study has applied correlation research design to establish the directions and magnitudes of stock price and its explanatory variables. This study has adopted linear regression models to analyze the impact of independent variables on stock prices in Nepalese stock market. Regression result of the study reveals that dividend policy, financial position and nature of firms have positive and significant impact on stock price but management quality and firm size have insignificant effect. This study is limited to company’s internal factor affecting stock price and the possible consequence from it. Hence the further study is advised to conduct intergrating both internal and external factors affecting to stock price in Nepalese stock market.