author(s)
Madan Kandel and Jagat Timilsina

abstract
This study investigates the factors influencing stock prices in Nepal's banking sector, focusing on Dividend Per Share (DPS), Earnings Per Share (EPS), Equity Multiplier (EM), and Holding Period Return (HPR) as key determinants of Market Price Per Share (MPS). Using data from NABIL Bank Ltd., Garima Bikash Bank Ltd., and Nepal Bank Ltd., the research employs descriptive and causal-comparative analysis to evaluate the relationships among these variables. Findings reveal that DPS is the most significant predictor of MPS, reflecting investor preference for consistent dividend payouts. While EPS and EM show positive but statistically insignificant relationships, HPR has a negligible impact, indicating that short-term returns are less critical in stock valuation. Correlation analysis highlights strong positive associations between MPS and both DPS and EPS, whereas EM and HPR show moderate negative relationships. The results emphasize the importance of dividends in stock price determination, aligning with existing literature but also identifying gaps related to market-specific dynamics. This study provides valuable insights for investors, policymakers, and academics by addressing underexplored variables and highlighting areas for further research in Nepal's evolving financial landscape.