scholarly journals Relationship between trading volume, stock return and return volatility: A case of Nepalese insurance companies

2019 ◽  
Vol 2 (2) ◽  
pp. 32-41
Author(s):  
Niraj Acharya ◽  
Sumit Pradhan
Keyword(s):  
Firm Size ◽  
Life Insurance ◽  
Market Price ◽  
Investment Strategy ◽  
Share Price ◽  
Insurance Companies ◽  
Return On Assets ◽  
Factors Affecting ◽  
Share Prices ◽  
Price Earnings Ratio

This study examines the factors affecting the share price of Nepalese non-life insurance companies. The knowledge of the factors and their possible impact on share prices is highly appreciable as it would help investors make wise investment decisions and enable firms to enhance their market value. This study is based on secondary data of 15 non-life insurance companies which are listed in Nepal stock exchange. The study covers seven years period from the fiscal year 2011/12 to 2017/18. The result shows that firm size is positively related to market price of share and price earnings ratio. It indicates that larger firm size leads to increase in market price of share and price earnings ratio. However, the study shows that inflation is negatively related to market price of share and price earnings ratio. The study also shows that dividend per share and return on assets are negatively related to the market price of share and price earnings ratio. Similarly, earnings per share have negative relationship with market price of share and price earnings ratio. The study concludes that the increase in return on assets and earnings per shares do not explain the variation in stock price in Nepalese non-life insurance companies. Nepal is one of the emerging economy; the determinants identified may provide knowledge to the potential investors about the key factors affecting share prices in the country and accordingly assist them in optimizing their investment strategy.

scholarly journals Factors Affecting Share Price of Nepalese Non-Life Insurance Companies

2019 ◽  
Vol 2 (2) ◽  
pp. 22-31
Author(s):  
Anamol Gautam ◽  
Nar Bahadur Bista
Keyword(s):  
Firm Size ◽  
Life Insurance ◽  
Market Price ◽  
Investment Strategy ◽  
Share Price ◽  
Insurance Companies ◽  
Return On Assets ◽  
Factors Affecting ◽  
Share Prices ◽  
Price Earnings Ratio

This study examines the factors affecting the share price of Nepalese non-life insurance companies. This study is based on secondary data of 15 non-life insurance companies with 105 observations for the period from the fiscal year 2011/12 to 2017/18. The result shows that firm size is positively related to market price of share and price earnings ratio. It indicates that larger firm size leads to increase in market price of share and price earnings ratio. However, the study shows that inflation is negatively related to market price of share and price earnings ratio. The study also shows that dividend per share and return on assets are negatively related to the market price of share and price earnings ratio. Similarly, earnings per share have negative relationship with market price of share and price earnings ratio. The study concludes that the increase in return on assets and earnings per shares do not explain the variation in stock price in Nepalese non-life insurance companies. Nepal is one of the emerging economy; the determinants identified will provide knowledge to the potential investors about the key factors affecting share prices in the country and accordingly assist them in optimizing their investment strategy. The knowledge of the factors and their possible impact on share prices is highly appreciable as it would help investors make wise investment decisions and enable firms to enhance their market value.

scholarly journals Impact of Firm Specific Factors on Financial Performance: A Comparative Study of Life and Non-Life Insurance Companies in Nepal

2021 ◽  
Vol 4 ◽  
pp. 39-55
Author(s):  
Bhupal Jaishi ◽  
Resam Lal Poudel
Keyword(s):  
Financial Performance ◽  
Firm Size ◽  
Life Insurance ◽  
Stock Exchange ◽  
Insurance Companies ◽  
Debt Ratio ◽  
Return On Assets ◽  
Data Set ◽  
Tangible Assets ◽  
Specific Factors

The empirical research has been carried out to examine the firm specific factors composition and its impact on financial performance of life and non-life insurance companies in Nepal. This paper employs the descriptive as well as causal-comparative research design. The study comprises of a panel data set of 14 insurance companies listed in Nepal Stock Exchange (NEPSE) with 140 observations covering a period of 10 years from 2009/10 to 2018/19. The result exhibits that the insurance companies having a high debt ratio have better financial performance. It also reveals that a higher proportion of debt ratio and tangible assets increases return in assets. On the other side, a lesser proportion of equity, firm size and liquidity decreases the return on assets of the insurance companies in Nepal. The study raises understanding of impacts of firm specific factors on financial performance and provides an empirical evidence that the total debt ratio, equity to the total assets ratio, leverage, firm size, liquidity and tangibility are the significant factors in determining the financial performance of Nepal’s insurance companies. The non-life insurance companies tend to perform better in term of financial performance measured by earning per share and return on assets. The study leads to practical implications for insurance companies and regulatory bodies. The insurance companies of Nepal interested to improve their financial performance should focus on increasing their leverage and long-term investment and decreasing the proportion of equity, firm size and liquidity.

scholarly journals Factors Affecting Profitability of Nepalese Non-Life Insurance Companies

2020 ◽  
Vol 13 (1) ◽  
pp. 23-35
Author(s):  
Janga Bahadur Hamal
Keyword(s):  
Firm Size ◽  
Life Insurance ◽  
Secondary Data ◽  
Financial Statements ◽  
Insurance Companies ◽  
Leverage Ratio ◽  
Factors Affecting ◽  
Total Debt ◽  
Size Firm ◽  
Relationship Of

The study examines the impacts of liquidity ratio, leverage ratio, firm size, age of the firm and total debt on the profitability of non-life insurance companies in Nepal. The dependent variable in the study is the return on asset (ROA), which is used as a measure of profitability. The study is based on secondary data of nine non-life insurance companies studied over a period of ten years, from 2066/67 to 2075/76. The data were collected from the financial statements published annually by the selected non-life insurance companies. Descriptive statistics, correlational analysis and regression models have been employed in order to test the impacts as well as the significance of the selected independent variables on ROA. The study concludes that the profitability of Nepalese non-life insurance companies increases with the increase in liquidity but decreases with the increase in leverage. However, the study establishes the insignificant relationship of firm size, firm age and total debt with profitability for the sector. The study thus suggests that non-life insurance companies should focus on the proper management of capabilities to pay liabilities to enhance profitability and also try to maintain a smaller value of leverage ratio to handle the above-average losses.

scholarly journals PENGARUH FAKTOR FUNDAMENTAL TERHADAP PENILAIAN SAHAM PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

2017 ◽  
Vol 4 (2) ◽  
pp. 78
Author(s):  
Muthia Harnida
Keyword(s):  
Firm Size ◽  
Stock Exchange ◽  
Manufacturing Companies ◽  
Present Value ◽  
Return On Assets ◽  
Stock Valuation ◽  
Financial Report ◽  
Fundamental Factor ◽  
Earnings Per Share ◽  
Price Earnings Ratio

The approaches of stock valuation can be used by the investor using  the approaches of present value and price earnings ratio. This research is to investigate the effect of fundamental analysis on the stock valuation using the approach of price earnings ratio. The fundamental factor uses some variables such as dividend yield, return on assets, leverage, firm size and growth of earnings per share. The sample is manufacturing companies listed in Indonesian Stock exchange for the period of financial report of 2013 until 2015.            The result indicates that statistically dividend yields, leverage, firm size, and return on assets have significant effect on the stock valuation of price earnings ratio, but  growth of earnings  per share does not affect the stock valuation.

scholarly journals Fundamentals of Stock Price in Nepalese commercial banks

2019 ◽  
Vol 4 ◽  
pp. 83-98
Author(s):  
Prem Prasad Silwal ◽  
Samrina Napit
Keyword(s):  
Commercial Banks ◽  
Stock Price ◽  
Stock Exchange ◽  
Market Price ◽  
Negative Relationship ◽  
Influential Factor ◽  
Share Price ◽  
Cross Sectional ◽  
Book Value ◽  
Price Earnings Ratio

The aim of this study is to ascertain the determinants of the stock market price in Nepalese commercial banks for the period of 2065/66 to 2074/75. It is based on pooled cross-sectional data of ten banks for 10 years whose stocks are listed in Nepal stock exchange. The study employed correlational and causal comparative research design and result reveals that book value per share, price earnings ratio, return on equity have positive relationship with stock price. Dividend yield has positive but minimum influence on the price of the stock whereas size has negative relationship and is statistically insignificant with stock price. Further, it reveals that book value per share is a most influential factor that determines stock price in Nepal.

scholarly journals Determinants of Firm Capital Structure: Empirical Evidence From Vietnam

2020 ◽  
Vol 11 (4) ◽  
pp. 10
Author(s):  
Hieu Thanh Nguyen ◽  
Anh Huu Nguyen
Keyword(s):  
Capital Structure ◽  
Method Of Moments ◽  
Firm Size ◽  
Generalized Method Of Moments ◽  
Return On Assets ◽  
Return On Equity ◽  
Factors Affecting ◽  
Tangible Assets ◽  
Negative Effect ◽  
Positive Effect

The paper aims to investigate the factors affecting firm capital structure in the context of Vietnam. The research sample includes 290 non-financial listed companies on Vietnamese stock market. This study applied Generalized Method of Moments (GMM) to explain the research results. The paper investigates six factors influencing on firm capital structure including return on assets (ROA), return on equity (ROE), firm size, tangible assets, risks, and growth. The empirical results show that return on assets, tangible assets, risks, and growth have a statistically significant positive effect on the firm capital structure while return on equity has a statistically significant negative effect on the firm capital structure. In addition, when dividing companies into sectors, the study realized that determinants of capital structure in some sectors are consistent with results for entire sample. Finally, firm size has the same impact on capital structure in oil & gas companies and material companies whereas it is not statistically significant for other companies. These evidences provide a new insight to managers on how to determine the reasonable capital structure.

scholarly journals The Effect of Institutional Factors on the Profitability Risk in the Insurance Companies Listed in the Saudi Stock Market

2018 ◽  
Vol 11 (7) ◽  
pp. 12
Author(s):  
Abdulaziz Mohammed Alsahlawi
Keyword(s):  
Regression Analysis ◽  
Stock Market ◽  
Multiple Regression Analysis ◽  
Firm Size ◽  
Capital Market ◽  
Significant Relationship ◽  
Institutional Factors ◽  
Insurance Companies ◽  
Return On Assets ◽  
Insurance Firms

This paper conducted an investigation into the effect of institutional factors namely, leverage, capital market assets, and firm size on the risk of profitability among Saudi insurance companies listed in the Saudi Stock market (Tadawul). The paper also determined if the institutional theory has a significant impact on the profitability risk of Saudi insurance firms. On the basis of the findings from the multiple regression analysis that was conducted on the data obtained, the study’s institutional factors namely, leverage, capital market assets, and firm size had a significant relationship with the return on assets of the Saudi insurance companies, which in turn, increased their profitability. In other words, the findings supported the contribution of leverage, capital market assets and firm size to the profitability of Saudi insurance companies and provided considerable directions as to developing a strategy of profitability among the companies.

scholarly journals An empirical analysis of internal and external factors of stock pricing: evidence from Indonesia

2017 ◽  
Vol 15 (4) ◽  
pp. 178-187 ◽  
Author(s):  
Hesty Juni Tambuati Subing ◽  
R. Wedi Rusmawan Kusumah ◽  
Gusni
Keyword(s):  
Consumer Goods ◽  
Stock Prices ◽  
Systematic Risk ◽  
Oil Prices ◽  
External Factors ◽  
Return On Assets ◽  
Factors Affecting ◽  
Company Stock ◽  
Price Earnings Ratio ◽  
Consumer Goods Industry

Stock prices change from time to time along with the latest conditions and information derived by investors dealing with the outlook for the company. Changes in stock prices are probably triggered by various factors, both internal and external, coming the company. Internal factors used in this study are price earnings ratio, return on assets, systematic risk, while external factors used are inflation, interest rates, and oil prices. The purpose of this study is to identify factors affecting stock pricing in the consumer goods industry, and determine which factors are most influential on stock prices company. The data used in this study were collected during the period from 2008 to 2015 of companies in consumer goods industry listed on the Indonesia Stock Exchange, and samples were taken from 18 companies. Panel data regression methods have been used to explain factors affecting the stock pricing of the company. Regression result indicates that price earnings ratio, return on assets, and Oil Prices have a positive impact on company stock prices, while inflation has a negative impact on company stock prices. Moreover, systematic risk and interest rate not impact the stock price of the company.

scholarly journals THE EFFECT OF THE FINANCIAL RATIOS ON THE SHARE PRICE OF INSURANCE COMPANIES LISTED IN THE IRAQI STOCK EXCHANGE MARKET USING MULTIPLE REGRESSION ANALYSIS (APPLIED RESEARCH IN THE IRAQI STOCK EXCHANGE MARKET)

2018 ◽  
Author(s):  
Othman Amin
Keyword(s):  
Multiple Regression ◽  
Stock Exchange ◽  
Multiple Regression Model ◽  
Share Price ◽  
Financial Ratios ◽  
Insurance Companies ◽  
Exchange Market ◽  
Share Prices ◽  
Research Population ◽  
The Relationship

<p><em>This research aims to identify the most important financial ratios affecting the share price of insurance companies listed in the Iraqi Stock Exchange Market (ISEM) during the period 2006-2015, and to indicate which ratios are more influential than others on share prices. The research population which consisted of (4 companies) is taken from insurance companies listed in the Iraqi Stock Exchange Market. The research sample consisted of one of these companies, representing  25% of the research population. In the statistical analysis a multiple regression model was used to determine the relationship between the independent and the dependent variables and the results of this study showed that there is a statistically significant relationship and effect between some financial ratios and the share price. The study gave a general background on the financial markets and the Iraqi Stock Exchange Market in particular.What characterizes this study from previous ones is demonstrating the effect of the financial ratios on the share price in the Iraqi setting for insurance companies listed in the Iraqi Stock Exchange using the multiple regression method.</em></p>

scholarly journals ANALYSIS OF FACTORS AFFECTING COMPANY USING DERIVATIVES

2021 ◽  
Vol 3 (1) ◽  
pp. 11
Author(s):  
Sriwati Sriwati
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Logistic Regression ◽  
Regression Analysis ◽  
Firm Size ◽  
Cost Of Debt ◽  
Return On Assets ◽  
Factors Affecting ◽  
The Cost ◽  
Size Variable

<p>This study aims to determine the factors that influence companies in using derivatives. In this study, the factors studied were the cost of debt, foreign sales, risk management, and corporate governance on the company's decision to use derivatives. The analytical method used in this research is logistic regression analysis using the Statistical Product and Services Solutions software. A total of 60 samples were used in this study, which were 20 companies included in the Corporate Governance Perception Index survey from 2016 to 2018. The Corporate Governance Perception Index survey is a survey conducted by the Indonesian Institute for Corporate Governance. The results of this study indicate that the cost of debt variable has a significant effect on the decision to use derivatives by the company. The corporate governance variable also has a significant effect on the decision to use derivatives by the company. The foreign sales variable in this study does not have a significant effect on the decision to use derivatives by companies. The risk management variable does not have a significant effect on the decision to use derivatives by the company. In this study, there are also control variables, namely firm size and return on assets. In this study, the firm size variable does not have a significant effect on the decision to use derivatives by the company. Meanwhile, the return on assets variable has a significant effect on the decision to use derivatives by the company.</p>

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