LBEF RESEARCH JOURNAL OF SCIENCE, TECHNOLOGY AND MANAGEMENT

Author(s):Deepin Joshi, Dr Prity Birla

Abstract:This study looks into how commercial banks in Kathmandu, Nepal’s share prices fluctuate in relation to their dividend policies. A key component of banks’ financial management is their dividend policy, which affects investor sentiment and market dynamics. The degree of risk and uncertainty involved in investing in bank stocks is reflected in share price volatility. It is crucial for investors, legislators, and bank management to comprehend the connection between dividend policy and share price volatility in order to make wise judgments. Using secondary data from financial accounts, stock market records, and other pertinent sources, the study uses a quantitative methodology. Regression analysis is one of the statistical approaches that was used to examine the data and make intelligible findings. The study’s conclusions were added to the body of knowledge already available on dividend policy and share price volatility in the context of commercial banks, especially in the market in Kathmandu. The findings were shed light on how decisions on dividend policies affect market dynamics and investor behavior, which was consequences for developing sound financial plans for both investors and bank management.

Keywords:Dividend Policy, Share Price Volatility, Commercial Banks, Kathmandu, Nepal, Financial Management, Investor Behavior, Market Dynamics.