Special Issue June - December 2024

Abstract

Insights into the Financial and Managerial Landscape of Developing Economy - Nepal

Abstract

This study examines the Impact of Interest Rate on Stock Price of Commercial Bank in Nepal. Stock price is the dependent variables and the bank rate, deposit rate, base rate, lending rate and the risk-free rate of return (T-bills) is the independent variable of the study. The study is based on the secondary data of 10 out of 19 listed commercial banks in the NEPSE with 100 observations for the period cover from 2014/15 to 2023/24. The supplementary data on interest rate collection from published financial and statistical report by Nepal Rastra Bank (NRB), Ministry of finance and annual reports of the selected commercial banks. A descriptive and causal comparative methodology was adopted. Correlation, regression, analysis of variance (ANOVA), coefficient of regression was conducted to test the significance and impact of interest rate on stock prices in the context of listed commercial banks in NEPSE index. The study indicates that the deposit rate and stock price show statistically negative significant relationships. Likewise, the lending rate and stock price have a significant negative relationship. However, the bank rate, base rate and risk-free rate of return (T-bills), do not show statistically significant relationships with stock prices. Deposit rate and lending rate are the key to enhancing stock price. Banks with lower deposit rates tend to generate better stock returns for their shareholders, while higher deposit and lending rates can decrease stock prices. Policymakers and regulators should encourage banks to lower deposit and lending rates to boost stock prices. This approach could enable investors to achieve higher returns on their stocks if deposit and lending rates are reduced. Key words: Bank Rate, Deposit Rate, Base Rate, Lending Rate, T-bills Rate and Stock Price.

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This paper investigates the mediating role of e-trust in the relationship between e-service quality and eloyalty in e-commerce companies. The research method uses non-probability sampling techniques specifically snowball sampling techniques. Likewise, data collection was carried out through an adopted questionnaire that featured a Seven-point Likert scale using a targeting 384 customers in e-commerce Companies. Analysis of research data was done using Structural Equation Model (SEM) with SmartPLS 4 version and SPSS software. Ease of Use and Reliability are key factors in E-Service Quality, shaping customer perceptions in e-commerce. E-Trust significantly mediates the link between E-Service Quality and E-Customer Loyalty, emphasizing trust's role in customer retention. However, Responsiveness and Security do not directly impact E-Service Quality, indicating that customers prioritize seamless interactions and reliability over immediate responses and security concerns. Additionally, E-Service Quality alone does not drive E-Loyalty, highlighting the need for trust in fostering long-term customer relationships. Enhancing Ease of Use and Reliability improves E-Service Quality and user experience. Since E-Service Quality does not directly influence E-Loyalty, businesses should prioritize building trust through transparent policies and secure transactions. These insights help e-commerce platforms refine service strategies to boost usability, reliability, and trust for better customer engagement and retention. Key words: E-service quality, E-loyalty, E-trust, E-commerce and SERVQUAL.

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This study aims to explore how various non-monetary rewards affect employee motivation in commercial banks. It specifically looks at the impact of career development, recognition, job security, training, and job design on motivating employees. Given the structured nature of banking roles, understanding the influence of non-monetary rewards is crucial for enhancing employee satisfaction and productivity. A descriptive and causal-comparative research design was utilized to examine the relationship between the independent variables (non-monetary rewards) and the dependent variable (employee motivation). The research was conducted in Butwal, Nepal, involving 20 commercial banks with a total employee count of 725. Using Cochran's formula, a sample size of 258 respondents was determined. A total of 189 questionnaires were collected, resulting in a response rate of 73 percent. Data collection was carried out through a structured questionnaire based on a 5-point Likert scale, encompassing 25 items. Various statistical methods, including frequency analysis, correlation, regression, t-tests, and ANOVA, were employed for data analysis. The findings reveal that career development, recognition, and job security significantly boost employee motivation in commercial banks. Employees tend to be more motivated when they have opportunities for career advancement, receive recognition, and feel secure in their positions. Conversely, training and job design appear to have a limited impact, likely due to the repetitive nature of banking tasks. Banks should focus on implementing career advancement programs, recognition initiatives, and ensuring job stability to enhance motivation. Future research should investigate industry-specific factors and the long-term effects on performance. Policymakers are encouraged to create supportive frameworks that promote job security and career growth within the banking sector. Key words: Non-monetary rewards, Employee motivation, Career development, Job security, Recognition.

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This study aims to explore the relationship between personality traits and employee performance in commercial banks of Butwal. The research utilized a convenience sampling technique to collect data from 240 employees of commercial banks. A structured questionnaire incorporating a seven-point Likert scale was employed to gather responses. The study adopted a descriptive and causal-comparative research design, applying various statistical analyses such as Mean, Standard Deviation, Correlation, Regression, One-Way ANOVA, Mann-Whitney U test, and Kruskal-Wallis H test to analyze the data. The findings revealed that there is a significant positive relationship between personality traits and employee performance. Moreover, conscientiousness and extraversion were identified as the primary determinants of employee performance within commercial banks. The study concludes that if commercial banks focus more on extraversion and conscientiousness while training their employees, there is a high possibility that employee performance can be enhanced. Key words: Neuroticism, extraversion, agreeableness, conscientiousness, Openness to experiences, employee performance.

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The study explores employee perceptions of mergers and acquisitions (M&A) in commercial banks, emphasizing key factors that shape these perceptions. It focuses on determinants such as performance management and employee turnover, which significantly influence employees’ outlook during organizational transitions. Using a descriptive and causal-comparative research design, data was collected from 362 employees of 20 commercial banks in Butwal Sub-Metropolitan City, selected via convenience sampling. Analytical methods, including mean, standard deviation, correlation, and regression analysis, were employed to interpret the findings. The results highlight that performance management has the most substantial positive impact on employee perceptions, with effective evaluation and feedback mechanisms fostering trust and optimism. Conversely, employee turnover negatively affects perceptions, with higher turnover rates contributing to increased dissatisfaction and negative sentiments during transitions. The study concludes that robust performance management systems and strategies to reduce turnover are essential for promoting positive employee perceptions during M&A. These measures enable organizations to create a supportive environment, enhance engagement, and facilitate smoother transitions. Policymakers, academic institutions, researchers, and stakeholders can leverage these findings to improve performance management practices, enhance HR curricula, explore additional influencing factors, and invest in talent retention and transparent communication to optimize M&A outcomes. Key words: Employee perception, mergers and acquisitions, performance management, employee turnover, organizational transitions.

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The study aims to investigate the mediating and moderating role of customer satisfaction and corporate image on the relationship between corporate social responsibilities and customer loyalty in Commercial Banks. Data were collected thoroughly from the customers of commercial banks by using a convenience sampling technique, targeting 385 customers of commercial banks. The study utilized an adopted questionnaire featuring a rigorous five-point Likert scale. Likewise, a descriptive and causal comparative research design was employed, complemented by a comprehensive array of statistical measures, including Mean, Standard Deviation, Correlation, and Regression, One way ANOVA, sample t-test meticulously chosen for robust data analysis. The finding revealed that the corporate social responsibilities of commercial bank positively contribute to customer loyalty and customer satisfaction. Likewise, the consumer protection has positively effect on corporate social responsibilities. Likewise, economic responsibilities, environmental contribution, ethical responsibilities, legal responsibilities and philanthropic responsibilities of commercial bank or the good indicators of corporate social responsibilities. The study suggests that focusing on corporate social responsibilities, including consumer protection, economic, environmental, ethical, legal, and philanthropic aspects, can enhance customer satisfaction and loyalty in commercial banks. Key words: Corporate social responsibilities, customer loyalty, customer satisfaction, corporate image, commercial One-way bank.

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This study investigates the connection between job satisfaction and human resource management (HRM) practices in Nepali commercial banks. This study examines employee satisfaction in commercial banks in Butwal Sub-Metropolitan City using a descriptive and causal-comparative research approach. Descriptive research helps to systematically examine and describe the situation, while causal-comparative research looks at the relationship between dependent and independent variables after an event has taken place. A total population of 593 employees was targeted, and questionnaires, structured with a five-point Likert scale, were administered to 234 employees, yielding a 100% response rate. With correlation coefficients of 0.712 and 0.696, respectively, correlation analysis showed that the two most important factors influencing job satisfaction were pay and work environment. These findings highlight the critical importance of a positive workplace and competitive remuneration for enhancing employee well-being. The study offers practical implications, suggesting that organizations should focus on improving the work environment, reviewing compensation strategies, clarifying promotion pathways, enhancing performance appraisal systems, and tailoring training programs to better align with employee needs. Key words: Human resources management, Job Satisfaction, Performance Appraisal, Training & Development, Promotion Practice, Working Environment.

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This study looked into how Nepalese insurance companies' stock prices were affected by their financial performance. A company's total financial health during a specific time period is gauged by its financial performance (FP). Return on equity (ROE), return on assets (ROA), earnings per share (EPS), book value per share (BVPS), and net profit margin (NPM) are the independent variables in the theoretical framework, while stock price is the dependent variable. Purposive sampling approaches were used to gather data for the study from five life insurance and five non-life insurance companies that have been in continuous operation for the past eight years without experiencing any significant changes. utilizing descriptive analysis, correlation, and other types of regression analysis by using EVIEWS. EPS has a substantial beneficial effect on stock values, according to the research findings. Return on assets (ROA) has a negative, large impact on stock prices, while ROE, NPM, and BVPS have negligible effects. Therefore, the insurance board should create unique regulations for life and non-life insurance companies, and any investor should take EPS and ROA into account while making stock market investments. The financial fundamental indicators are always at their best thanks to it. Because of this, insurance companies' stock values are consistently beneficial on the secondary market. Key words: Stock Price, Return on Equity, Return on Assets, Net Profit Margin, Earning per Share, and Book Value per Share.

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The objective of this investigation is to look at the relationship between employee performance and quality of work-life in manufacturing companies. A self-administrative questionnaire was used to gather data for the study from 231 manufacturing company employees in the Butwal Industrial Estate using a convenience sample approach on a five-point Likert scale. In the research study's causal and descriptive comparative research design, Hays Process Macro Approach and Correlation were utilized as research design tools. The study's conclusions showed a strong connection between employee performance and work conditions, relationships, and cooperation, organizational culture, social integration, and compensation and reward. Moreover, it is also found that there is significant effect of Work condition, Relation and Cooperation, Organization culture, social integration, Compensation and Reward on Employee Performance. Among the different variables used Organization culture, Compensation, and Reward has the highest influences on the job performance. Consequently, it can be assumed that there is a higher chance of improving employee performance if manufacturing organizations focus on these areas, namely Organization culture and reward and compensation in favor of employees. Key words: Employee Performance, Work condition, Relation and co-operation, Organization culture, co-operation, social integration and Compensation and Rewards.