Stock Price Behavior of Nepalese Commercial Banks: Random Walk Hypothesis

Authors

  • Nirajan Bam Pokhara University, Nepal
  • Rajesh Kumar Thagurathi Pokhara University, Nepal
  • Bipin Shrestha Pokhara University, Nepal

DOI:

https://doi.org/10.3126/jbm.v5i0.27387

Keywords:

Efficient Market, Nepal, Random Walk, Stock Price Behavior Theories

Abstract

Using the data set on daily stock prices during the fiscal year 2015/16 (Sept 23, 2015 through Dec 22, 2015), this paper attempts to analyze the random behavior of stock price of Nepalese Commercial Banks by using run test, serial correlation and run tests and martingale random walk hypothesis under heteroscedasticity assumption of standard error. The results conclude that the proposition of Random Walk Hypothesis (RWH) in Nepalese stock markets does not hold true. This conclusion corroborates with the conclusions of the past studies carried out in Nepalese context.

Downloads

Download data is not yet available.
Abstract
743
PDF
1144

Author Biographies

Nirajan Bam, Pokhara University, Nepal

Lecturer, School of Business

Rajesh Kumar Thagurathi, Pokhara University, Nepal

Associate Professor, School of Engineering

Bipin Shrestha, Pokhara University, Nepal

Research Scholar, School of Business

Downloads

Published

2018-12-01

How to Cite

Bam, N., Thagurathi, R. K., & Shrestha, B. (2018). Stock Price Behavior of Nepalese Commercial Banks: Random Walk Hypothesis. Journal of Business and Management, 5, 42–52. https://doi.org/10.3126/jbm.v5i0.27387

Issue

Vol. 5 (2018)

Section

Articles

License

Copyright © the School of Business. All rights reserved. No part of this volume may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by and information storage and retrieval system, without permission in writing from the publisher.