Fundamentals of Stock Returns in Nepal
Pandey, Ganesh Prasad; Dhital, Bandana (2025)
2025
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202504146450
https://urn.fi/URN:NBN:fi:amk-202504146450
Tiivistelmä
The report explores fundamental financial variables that influence stock price performance of commercial banks performing on Nepal Stock Exchange (NEPSE). Stock return analysis during 2005-2020 for nine banks spanning 15 years utilizes financial indicator measures that link earnings yield with firm size and book-to-market ratio and cash flow yield to establish relationships. Results show total yield performs positively regarding firm size and book-to-market ratio but negatively regarding earnings per share based on econometrics. The research does not show any meaningful statistical relationship between stock returns and values of cash flow yield. Basic financial performance measures work as vital elements which affect the ability to predict stock returns in Nepal's developing financial market structure.
The analysis delivers useful information to financial policymakers and investors because book-to-market ratios and firm size strongly influence stock returns despite conflicting evidence regarding earnings yield and cash flow yield performances. New patterns of emerging market stock returns become clearer through this research as the findings help financial markets with practical decision making and policy needs.
The analysis delivers useful information to financial policymakers and investors because book-to-market ratios and firm size strongly influence stock returns despite conflicting evidence regarding earnings yield and cash flow yield performances. New patterns of emerging market stock returns become clearer through this research as the findings help financial markets with practical decision making and policy needs.