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VOL. 10, ISSUE 3 (2024)
Impact of capital inflow on market reaction in Nepal
Authors
Bhim Kumar Thapa
Abstract
Examining the impact of Foreign Direct
Investment (FDI) and Remittance (REM) on stock returns (Rt) within the
framework of the Nepalese economy is the aim of this quantitative research.
Based on a methodology that blends descriptive and analytical methods, reliable
databases, government documents and scholarly publications are used to examine
data from 1996 to 2023. FDI, REM and stock returns are significantly positively
correlated, according to correlation analysis. Further explanation of these
interactions is provided by regression analysis, which reveals that remittances
have a large positive influence on stock returns whereas FDI has no
statistically significant effect. Policymakers should give initiatives aimed at
increasing remittance inflows top priority in light of these results, which
highlight the significance of remittances as a major factor influencing NEPSE
performance. The ramifications point to the need for favorable conditions to
draw in remittances, well-informed investment choices based on remittance patterns
and more research into the variables influencing the relationship between stock
returns and remittances to maximize Nepal's economic growth and stock market
dynamics.
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Pages:18-22
How to cite this article:
Bhim Kumar Thapa "Impact of capital inflow on market reaction in Nepal". International Journal of Commerce and Management Research, Vol 10, Issue 3, 2024, Pages 18-22
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