Determinants of Firm Value in Commercial Banks of Nepal

Abstract

The study aim has analyzed to determine the firm value in commercial banks in Nepal. The study based on the balance panel secondary data in commercial banks of Nepal from period of 2013/ 14 to 2017/18. The descriptive, correlational and casual comparative research design has been employed in this study. Firm value taken was taken as dependent variables and whereas financial decision, investment decision, dividend decision, profitability and firm size were independent variables.  The Pooled OLS and Fixed Effects regression model have been employed. The result reveal that financial decision, investment decision, profitability have positive and significant effects on firm value. The dividend policy has negative and statistically significant effects on firm value. The bank size has not significant role to determine firm value of commercial banks in Nepalese context. The study recommended that the commercial banks board of directors, chief executive officer and marketing officer, stakeholders are taken carefully decision about financial decision, investment decision, profitability and dividend policy variable to increase the firm value.