Relationship between corporate governance and stock price in Nepalese commercial banks

The study examines the relationship between corporate governance and stock price in Nepalese commercial banks. The stock price and stock return are the dependent variables. The selected independent variables are board size, board independence, audit committee size, ownership structure, board meeting, board diversification, firm size, earnings per share, and leverage. This study is based on the secondary source of data for the period of 2013/14 to 2019/20 of 20 commercial banks, leading to a total of 140 observations. The regression models are estimated totest the significance and impact of corporate governance on the stock price in Nepalese commercial banks.The study reveals that board size has a positive impact on stock price. It indicates that increase inboard size leads to an increase in stock price. Likewise, ownership structure has a positive impact on stock price. It states that increase in foreign ownership leads to increase in stock price. Similarly, board diversification has a positive impact on stock price. It reveals that higher the number offemale director on board, higher will be the stock price. Similarly, earnings per share has apositive impact on stock price, which implies that increase in earnings per share leads to increasein stock price. Likewise, leverage has a positive impact on stock price. It shows that increase leverage leads to increase in stock price. Similarly, firm size also has a positive impact on stockprice. It means that the larger the firm size, higher would be the stock price. However boardindependence, audit committee size, and board meeting have negative impact on stock price. It shows that increase in board independence, audit committee size, and board meeting leads to decrease in stock price. The result also shows that board size, board diversification, EPS, leverage, and firm size have positive impact on stock return. It indicates that increase in board size, board diversification, EPS, leverage, and firm size leads to increase in stock return. However, independence, ownership structure, board meeting, and audit committee size have negative impacton stock return. It implies that increase in board independence, ownership structure, board meetings, and audit committee size leads to decrease in stock return.Key words; Stock price, stock return, board size, board independence, ownership structure, audit committee size, board meeting, board diversification, earnings per share, leverage, and firm size. (PDF) Relationship between corporate governance and stock price in Nepalese commercial banks