Effect of Firm-Specific Variables on Stock Returns: Evidence from Nepal

Background: Common stock return is a major concern for investors and the management of firm. Investors always want to increase their values common stock; thus, they returns. The investor investment prefers company that provides better return. Thus, firm wants affected by so many internal external factors. Internal factors are firm-specific firm's can control, macroeconomic individual cannot control. Generally, include size firm, book-to-market equity, earnings yield, cash flow dividend leverage, on assets, sales-to-price ratio etc. If identifies these influence, return.
 Objective: This paper aims investigate effect variables Nepalese commercial banks.
 Methods: To observe influence banks, multivariate regression analysis have been applied. In taken as dependent variable such (lnME), equity (BE/ME), yield (E/P), (D/P), assets (ROA), earning per share (EPS), sales price (S/P) explanatory variables.
 Findings: finds positive impact D/P EPS, negative E/P, ROA S/P Conclusions: concludes banks increasing EPS lowering ratios.
 Implication: findings this study be implemented decisions bank maximize returns banks.