Paudyal Tek Bahadur (2005) carried out a research on A Comparative study on Dividend Policy of Banks and Insurance Companies

in Nepal. The main objective of this study was to compare dividend policy between banks and insurance companies where, the specific objectives were to study various aspects of dividend policies of banks and insurance companies in Nepal, to examine the relationship between dividend and market price of stock, to analyze factor affecting dividend policy decision of banks and insurance companies and to provide suggestion on the basis of finding. Both primary and secondary data were used to analyse the dividend policy relationship of banks and insurance companies and examine the rel;ationship between dividend and market price of stock of banks and insurance companies. The datas were obtained from financial statement of listed companies and annual reports of concerned banks and insurance companies. Further, the secondary data were taken from various newspaper and magazines, related document and journals. Multiple regression models were used for the analysis of this study where the dividend is dependent variable. The model was: Div.= a+b1 div(t-1) + b2 Liq. +b3 Ear. Where, Div= Dividend A= Intercept or constant B= coefficient of variable Div (t-1) = Dividend per share in time t-1
Liq= current ratio (CR) or Quick Ratio Ear = Earning

or return on asset

Likewise, the multiple regression models of MPS depending upon earning, dividend and net worth was: MPS = a+ b1 Ear + b2 Div (t-1) + b3 NW

Where, MPS= market price of stock Ear = Earning Div (t-1) = Last year dividend NW = Net worth B= Coefficient of Variable The major findings obtained from the general and some specific analysis of secondary data of three banks and three insurance companies analyzed were with respect to factor affecting dividend policy the corporation gave the first priority to earning, second to liquidity and third to past dividend. the majority of the company paid the cash dividend but company paid stock dividend when they had no cash to pay dividend. Sometimes company paid cash and stock dividend both.

Paudel Bharat Raj (2004) carried out a research on Dividend Policy of Commercial Banks in Nepal. The main objective of this study was to identify whether it was possible to affect shareholders wealth by changing the firms dividend payout ratio. This research carried out the sampling technique in selecting sample from the population.The sources of data were taken form the Nepal Stock Exchange Ltd. Only secondary data related to dividend policy were considered under the study. Reghression analysis model was used to calculate and interpret the result of the study. The model was as follows:
1. DPS on EPS Y= a+ bx where: y= dividend per share a= Regression constant b= Regression coefficient x= Earning per share

2.

DPS on NP Y= a=bx where, y= dividend per share a= Regression constant b= Regression coefficient x= Net Profit

3.

MPPS on DPS Y= a+ bx where: y= dividend per share a= Regression constant b= Regression coefficient x= Dividend per share

The major findings of this study were the prevelance of of dividend pattern of commercial banks seemed uneven and fluctuating in Nepal. Commercial banks do not have any stable and consistent dividend practice. Dividend payment is not regular phenomenon in Nepalese Commercial banks.

Ghimire Gokarna (2005) carried out a research on Dividend Behaviour of Nepalese Commercial Bank. The main objectives of this study were to highlight the dividend behavior of Nepalese commercial , to analyze the relationship of dividend with earning per share and to provide the suggestion and recommendation to concerned authority in making their policy decisions relating in dividend pay out ratio. The research design followed the comparative evaluation of dividend policy in the sample firms and their effect on stock prices. Secondary data were used and the financial statement of five years from 1994/96 to 1999/99 were taken for commercial banks and from 1994/95 to 1998/99 taken for insurance companies from respective firms and websites. . The sources of data were collected from insurance board, , Nepal Stock Exchange, websites and respective firms central office. Simple and multiple- linear regression analysis were used to study the relationship .

The major findings of this study was a change in dividend per share affects the market price per share in stock market differently in different commercial banks, a change in dividend per share affected the net worth different in different commercial banks in Nepal, the dividend behavior of commercial banks in Nepal was not uniform and the earning per share and net profit affects the dividend behavior differently in different commercial banks.

REFERENCES:

Bibliography Ghimire, G. (July, 2005). Dividend Behaviour of Nepalese Commercial Bank. Paudel, B. R. (Feb., 2004). Dividend Policy of Commercial Banks in Nepal. Paudyal, T. B. (Sept., 2005). A Comparative study on Dividend Policy of Banks and Insurance Companies in Nepal.