Management Dynamics <p>Management Dynamics is a journal of Management and Economics. It is published by the Faculty of Management, Shanker Dev Campus, Tribhuvan University, Putalisadak, Kathmandu, Nepal.</p> en-US <p>Copyright © Research Management Cell, Shanker Dev Campus</p> (Prof. Dr. Keshav Raj Joshi) (Sioux Cumming) Sun, 21 Mar 2021 19:52:26 +0000 OJS 60 Dimensions of Nepalese Bakery Products and its Impact on Customers’ Satisfaction <p>This research tries to identify the dimensions of Nepalese bakery products and measure the impact of Nepalese bakery products on customers’ satisfaction. This research is based on primary data. To achieve the objective, quantitative and qualitative research designs have been used. Data were collected through personal interview, questionnaire and observation with 396 customers from Kathmandu Valley. Judgmental and purposive sampling technique was used in this procedure. Demographic analysis, percentages, arithmetic means, standard deviation and multiple regression equations were used to analyze and interpret the data. It is revealed that the price of bakery products have highest mean values where as location is least important than other dimensions. Among different dimensions of bakery products, price, quality and location have significant impact upon the customers’ satisfaction under one percent level of significant. Similarly, taste of bakery items and ambience of bakery shop are significant.</p> Kapil Khanal Copyright (c) 2020 Research Management Cell, Shanker Dev Campus Thu, 31 Dec 2020 00:00:00 +0000 Nexus between firm fundamentals and financial leverage in Nepalese nonfinancial firms <p>This paper aims to analyze the nexus between firm fundamentals and financial leverage in Nepalese non-financial firms for the period 2000/01-2017/18 applying descriptive and causal comparative research design. Short-term, long-term and total financial leverage ratios are dependent variables and firm-fundamental variables are considered as explanatory variables. The result of this paper shows that Nepalese firms are highly levered. Regression results of this study reveals that profitability, earning variability, liquidity are major determinants of financial leverage. This study concludes that short-term financial leverage is positively affected by growth and earning variability whereas negatively affected by profitability, tangibility, and liquidity of firms. Similarly, long-term financial leverage is positively influenced by size, assets tangibility, and earning variability whereas negatively influenced by profitability and liquidity. Further, result of the paper reveals positive effect of assets tangibility and earning variability and negative effect of profitability and liquidity on total financial leverage. Finally, this paper concludes that firms’ non-debt tax shield and age of firms have no significant impact on financial leverage in Nepalese non-financial firms.</p> Pitambar Lamichhane Copyright (c) 2020 Research Management Cell, Shanker Dev Campus Thu, 31 Dec 2020 00:00:00 +0000 Impact of Relationship Marketing on Customer Retention in Higher Education <p>This research attempts to measure the impact of relationship marketing on customer retention in higher education. Exploratory cum descriptive and causal research design was used. Sources of data are students, parents, and faculties of different colleges. A convenient sampling method was used for sample selection. Structured questionnaires were used for collecting responses. Primary cross-section data were collected. PLS-SEM was used for testing the psychometric and econometric properties of the model. This research confirmed that relationship marketing, customer orientation, customer satisfaction, and customer retention are possible in the academic sector. Policymakers and academic experts should focus on relationship marketing factors and customer orientation to enhance customer satisfaction and customer retention.</p> Sajeeb Kumar Shrestha Copyright (c) 2020 Research Management Cell, Shanker Dev Campus Thu, 31 Dec 2020 00:00:00 +0000 Customer Satisfaction Towards ATM Service In Nepalese Banking Sector <p>This research is intended to examine the relationship between reasonability of fee charged, choice of ATM, usage of service and post purchase behavior and customer satisfaction. The research has used primary sources of data. A well-structured questionnaire was designed to collect data from 200 respondents using purposive sampling technique. The data was analyzed using correlation. The findings revealed that there was a positive and significant relationship between reasonability of fee charged, choice of ATM, usage of service and post purchase behavior and customer satisfaction. The research is afresh study in the field of banking sector in Nepalese context. There is an implication of research in the banking sector.</p> Joginder Goet Copyright (c) 2020 Research Management Cell, Shanker Dev Campus Thu, 31 Dec 2020 00:00:00 +0000 Secondary Capital Market of Nepal: Assessing the Relationship Between Share Transaction and NEPSE Index <p>Capital Market plays a significant role in financial mobilization and provide an effective way of procuring long-term funds at same. In a addition it provide an investment opportunity for individuals and institutions. Nepalese capital market is growing and improving phase. The objective of this study is to assess the existing status of secondary capital market and to examine the relation between the share transaction amount and NEPSE Index. The period 2009/10 to 2018/19 has been used for study purpose. The trends of capital market development track after 2009/10 to present status has been indentified using descriptive analytical research design. Applying secondary data, the results found that there has significant contribution of secondary capital market for financial resources mobilization in Nepal. In addition, there exist significant positive impact of share transactions on NEPSE Index in Nepalese secondary capital market. The study recommends more effort form related sector for the modernization and systematization of share market.</p> Dhan Raj Chalise Copyright (c) 2020 Research Management Cell, Shanker Dev Campus Thu, 31 Dec 2020 00:00:00 +0000 Knowledge Management Capability in Nepalese Commercial Banks <p><span class="fontstyle0">This study focuses on exploring the state of knowledge management capability (KMC) in Nepalese commercial banks and develop as well as validate its dimensions. A survey research strategy was adopted to achieve the study objective and the descriptive research design was followed to explore the state of KMC in Nepalese commercial banks. The population of this study was comprised of all 27 commercial banks of Nepal. To achieve sufficient sample size and generalization of the result, the sample frame for this study included 9 commercial banks. At least 20 employees from each organization were approached to respond about the existence of KMC in their respective organizations. Altogether 250 questionnaires were distributed, out of this 180 questionnaires were returned, the response rate was 72%, which may be taken highly satisfactory in survey research design. The exploratory factor analysis (EFA) of KMC was done to extract the latent factors or dimensions from the measured items. All three dimensions of KMC were found in unsatisfactory state. The private sector banks were found to have a better position in all three dimensions of KMC than the public sector banks. Further, the EFA of KMC items revealed for dimensions of KMC: knowledge acquisition, knowledge sharing-employees, knowledge sharing-management and knowledge utilization.</span></p> Dilliram Bhandari Copyright (c) 2020 Research Management Cell, Shanker Dev Campus Thu, 31 Dec 2020 00:00:00 +0000 Impact of Teamwork on Organizational Productivity in Nepalese Commercial Banks <p>Teamwork is a critical component of team performance and requires an explanation of how a team behaves and it has the ability to enable the members of the team to have a higher level of emotional security, self-confidence and the ability to plan and decide with others positively. However, the benefits of teamwork for the employees are often more abstract and difficult to distinguish that may hamper organizational productivity. This study is an endeavor to extend the literature of impact on teamwork on organizational productivity in commercial banks. This paper attempts to examine the impact of teamwork on organizational productivity in Nepalese commercial banks. Structured questionnaires were distributed to 500 respondents of 27 Nepalese commercial banks but out of them only 350 responses are collected and are used for analysis. Descriptive and casual comparative research design are used to determine the relationship of organizational productivity (dependent variable) with independent variables (teamwork, team trust, working environment, training and development, and esprit de corps). Descriptive statistics and multiple regression models have been used to analyze the data. Organizational productivity is positively correlated with all independent variables and regression results exhibit significant and positive beta coefficients. It is observed that working environment is the most powerful factor for organizational productivity and employees’ satisfaction and training and development is the least influencing factor among all factors. Nepalese commercial banks also take into consideration team trust, teamwork, and espirit de corps because these factors have positive impact on organizational productivity. Nepalese commercial banks should focus on increase in prompt response to the team trust, appropriate training and development, better working environment, and proper teamwork to increase productivity.</p> Pitri Raj Adhikari Copyright (c) 2020 Research Management Cell, Shanker Dev Campus Thu, 31 Dec 2020 00:00:00 +0000 Judicial Response to the Doctrine of Specific Performance in Nepal <p>Specific Performance is one of the equitable remedies available to the victim of breach of contract awarded by a judicial decision in cases where damages are not adequate. This paper aims to highlight the legal principles and provisions of specific performance; Nepalese laws in that arena; and most specifically the judicial response to the doctrine whereby several case laws where the order of specific performance was granted or refused by the Supreme Court of Nepal have been examined. This doctrinal study has adopted exploratory descriptive and analytical method. The analysis is based on primary data drawn from the statute and major judicial decisions, and some secondary data drawn from articles, books and treatises on the issue. The nascent Muluki Civil Code, 2074 has also provided various remedies available to the victim party of breach of contract like its predecessor legislation, i.e. the erstwhile Contract Act, 2056. This paper thrives to explore the principle of specific performance of contract and to discuss the judicial responses to the doctrine of specific performance of contract in Nepal.</p> Satya Narayan Kalika Copyright (c) 2020 Research Management Cell, Shanker Dev Campus Thu, 31 Dec 2020 00:00:00 +0000 Loan Growth and Bank Performance: A Panel ARDL Approach <p>This paper analyzed the effect of loan growth in three performance aspects, profitability, stock return and credit risk of Nepalese commercial banks applying the panel autoregressive distributed lag (ARDL) approach. To avoid the effect of the merger on loan growth 8 banks which have not merged with or acquired other institutions are taken as sample and 8-year data from each sample bank from 2012- 2019 has been sued in the study. The result showed that none of the three performance indicators is affected by the loan growth in the long-run. It is also found that the credit risk of banks does not change with the change in loan growth in the short-run as well. This indicates that banks are not aggressive in their lending. However, profitability and stock return are affected positively by the loan growth in the short-run. The findings from this study suggest to the investors in the stock market to choose the stock of bank with higher loan growth.</p> Jhabindra Pokharel Copyright (c) 2020 Research Management Cell, Shanker Dev Campus Thu, 31 Dec 2020 00:00:00 +0000 Training and Development Costs, Staff Costs and Operational Profitability in Nepalese Commercial Banks <p>The main aim of this study was to identify examine the relationship between staff trainings and development costs, total staff costs and the operational profit of Nepalese commercial banks. Six commercial banks has been taken for the study using purposive sampling technique from the total population consisting two government owned banks, two joint venture banks and the rest from private commercial banks. Training and development costs, staff costs and operational profit (before tax) has been defined as the variables of the study. Data have been collected from the annual reports of respective banks covering for the financial year 2016/2017 to 2019/2020. This study found that private commercial banks have focused on training and development to their staff. The staff costs of private banks has been highly explained by training and development costs and it has resulted higher positive impact of staff cost with operational profit.</p> Naba Raj Adhikari Copyright (c) 2020 Research Management Cell, Shanker Dev Campus Thu, 31 Dec 2020 00:00:00 +0000 Analyzing the Economic Impact of Foreign Employment on Development Prospective of Nepal <p>Foreign employment has become one of the major sources of households’ income for Nepalese society. Nepal has become one of the major labors exporting country. After 1990s, remittance is playing a crucial role for foreign currency earnings and favorable impact on balance of payment situation, to reduce the number of people in the country below the poverty line and ultimately to the economic growth of the nation. This paper tries to examine the economic impact of foreign employment on remittance as well analyze the growth and trends of foreign employment and remittance on development prospective in Nepalese economy. Some descriptive statistics such as percentage, ratio, pie-chart, bar diagram and line chart are used to explain the growth and trends of foreign employment as well as situation of remittance in Nepal. Correlation and linear regression model are used to analyze the impact of foreign employment on remittance. The inflow of remittance growth rate has positive association along with significant contribution of remittance to Gross Domestic Product in Nepalese economy. Also, foreign employment has important effect on remittance. Foreign employment is one of the effective instruments for poverty alleviation and social changes.</p> Khom Raj Kharel, Suman Kharel Copyright (c) 2020 Research Management Cell, Shanker Dev Campus Thu, 31 Dec 2020 00:00:00 +0000 Infrastructure Development and Economic Growth in Nepal <p>This article, on infrastructure development and economic growth in Nepal, focuses on the infrastructure development that seems to affect economic growth in Nepal during the study period 1994-2018. To investigate the casual relationship between infrastructure development and the economic growth, this study has employed Engel-Granger cointegration test and Error Correction Mechanism (ECM) model. The results showed a cointegration and a stable relationship between gross domestic product and infrastructure variables—such as total length of road, percentage of economically active population, percentage of tertiary education enrollment, and gross capital formation. In addition, the coefficient of Error Correction term was -0.88—signifying about 88 percent adjustments towards equilibrium, confirmed by the occurrence of a stable long-run relationship among the variables. The sign of Error correction term (Ect) became negative and statistically significant at the 1 percent level, indicating the possibility of convergence towards equilibrium in each period with adjustment captured by difference terms. This study has its implication for policymakers to raise economic growth through infrastructure development. The expansion of infrastructure network leads to the enhancement of efficiency and competitive market, and the acceleration of the economic growth within the country.</p> Bashu Dev Dhungel Copyright (c) 2020 Research Management Cell, Shanker Dev Campus Thu, 31 Dec 2020 00:00:00 +0000 Factors Influencing Investment Decisions of Nepalese Investors <p>The study focuses on the factors influencing investment decisions of Nepalese investors in the stock market, with a sample size of 110 respondents of Surkhet Valley. The data are collected using structured questionnaire containing yes/no response questions, multiple choice questions, ranking questions, and Likert scale questions. The survey was conducted in June, 2018. The factors influencing investing decision are grouped into three main variables i. e. company related variable (CRV), risk and return related variable (RRV), and market related variable (MRV). In company related variable factors such as management team, financial performance, size, EPS, DPS are included, in risk return related variable expected return, past return, risk of the company, liquid securities etc. are included, and in market related variable factors such as market information, market price per share, dividend growths etc. are included.</p> <p>This study concluded that majority of investor prefer to by stock from primary market, investor analyze the company before making investment decision, investor monitor their portfolio occasionally, and most of the investor use own saving for making investment in stock.</p> <p>Finally, this study concluded that investment decision of Nepalese investor is more influenced by company related variable (CRV) than market related variable (MRV) and risk and return related variable (RRV). Positive and significant coefficient of company related variable (CRV) is observed in all regression models. It can, therefore, be concluded that the Nepalese investor makes investment decision observing the company related variable of Nepalese companies.</p> <p><span class="fontstyle0"><br> </span></p> Purna Man Shrestha Copyright (c) 2020 Research Management Cell, Shanker Dev Campus Thu, 31 Dec 2020 00:00:00 +0000 The dynamic relationship between stock returns and trading volumes in Nepalese stock market <p>&nbsp;In finance, the relationship between stock returns and trading volume has been the subject of extensive research over the past years. The main motivation for these studies is the central role that trading volume plays in the pricing of financial assets when new information comes in. As being interrelated and interdependent subjects, a study regarding the trading volume and stock returns seem to be vital. It is a well-researched area in developed markets. However, very few pieces of literature are available regarding the Nepalese stock market that explores the association between trading volume and stock return. Realizing this fact, this paper aims to examine the empirical relationship between trading volume and stock returns in the Nepalese stock market using time series data. The study sample is comprised of 49 stocks traded on the Nepal Stock Exchange (NEPSE) from mid-July 2011 to mid-July 2018. This study examines the Granger Causality relationship between stock returns and trading volume using the bivariate VAR model used by de Medeiros and Van Doornik (2008). The study found that the overall Nepalese stock market does not have a causal relationship between trading volume and return on the stock. In the case of sector-wise study, there is a unidirectional causality running from trading volume to stock returns in commercial banks and stock returns to trading volume in finance companies, hydropower companies, and insurance companies. There is no indication of any causal effect in the development bank, hotel, and other sectors. This study also finds that there is no evidence of bidirectional causality relationships in any sector of the Nepalese stock market.</p> Prem Lal Adhikari Copyright (c) 2020 Research Management Cell, Shanker Dev Campus Thu, 31 Dec 2020 00:00:00 +0000 Initial Public Offering Investment: The General Investors’ Perspective <p>This study aims to explore the views of general investors on their IPO investments in the primary market. Using a judgemental sampling, the views of 109 general investors who actively participated in the primary market has been employed in the study from Pokhara City. The study revealed that banking and finance followed by hydropower are the most preferred sectors of buying common stocks in the primary market with the expectation of long term returns. There is a significant different perception on both risk and return from IPO investment between male and female investors. The study also found that government’s policy announcements followed by the size of the firm that issues IPOs are the major determinants of IPO return and risk among investors. Increasing paid up capital for business expansion is the important reason for issuing IPOs by the companies while creating exit route for existing shareholders is the least.</p> Jas Bahadur Gurung Copyright (c) 2020 Research Management Cell, Shanker Dev Campus Thu, 31 Dec 2020 00:00:00 +0000 Socio-Demographic Factors in Predicting Organizational Commitment of Nepal Telecom Employees <p>The study intends to assess the 3-dimensional organizational commitment and its effects on socio-demographic factors such as gender, age, and tenure of Nepal Telecom employees. Random sampling method proportionately to the job position level had been harnessed to collect primary data with survey method and ultimately, 322 samples were gathered. Analysis tools t-test, ANOVA, post hoc analysis harnessed to examine the objectives.</p> <p>The study results that age and work experience are significantly associated to employees’ normative commitment while higher working years of employees are different from less experiential employees in terms of overall commitment and continuance commitment.</p> Bandana Kumari Jain, Krishna Kumar Lamichhane Copyright (c) 2020 Research Management Cell, Shanker Dev Campus Thu, 31 Dec 2020 00:00:00 +0000 Behavioral Change and Family Disruption among Labor Migrants in Nepal <p>Sociological studies of migration are diverse. The motive for international labor migration includes political, economic, social, and environmental cause. In this regard, this study aims to explore the behavioral change among the labor migrants and the status of family disruption of the Nepalese involved in foreign labor migration. The study has been based on primary source, data collected from interview schedule by fulfilling the validity from the review of literature with the sample from Tribhuvan International Airport, and migrant returnee’s temporary residences such as hotels and guest house on accidental basis. The sample includes 102 respondents. The study concludes that the there is a behavioral change among the family members of the migrant labors. The study further concludes there has not been the family disruption among the family members of the migrant labors.</p> Ram Raj Pokharel Copyright (c) 2020 Research Management Cell, Shanker Dev Campus Thu, 31 Dec 2020 00:00:00 +0000 Attitude Towards Shopping Mall Purchasing Behavior <p>Consume attitude is multidimensional and it has been one of the main concepts used to explain individual differences. This study aims to examine the relationship between overall attitude and shopping mall purchasing behavior and impact of advertising and purpose to visit on shopping mall purchasing behavior in Nepalese consumers. The present study is descriptive and analytical in nature. Structured questionnaire technique under survey approach was applied for collecting primary data with five point Likert scale questionnaire. The population of this study targeted the consumers of shopping malls in Kathmandu valley. The sample size has been derived for unknown population that is 384. The judgmental sampling technique was used in this research to make this study more inclusive and representatives. Descriptive statistics and inferential statistics (correlation analysis and regression analysis) have been used to analyze the data. It is found that there is strong association between shopping mall purchase behavior and overall consumer attitude. The study found that purpose to visit has impact on shopping mall purchase behavior. The study also found that advertisement has no significant impact on shopping mall purchase behavior.</p> Raju Bhai Manandhar Copyright (c) 2020 Research Management Cell, Shanker Dev Campus Thu, 31 Dec 2020 00:00:00 +0000 Consumer’s Motivation to Purchase Frozen Food in Kathmandu <p class="Default"><span style="font-size: 10.0pt;">The purpose of the current study is to identify the motivating factors in purchasing frozen food in Kathmandu. Frozen food is considered one of the growing food industry, and bears the ability to sustain itself in today’s market. The research used casual-comparative and descriptive research design with a quantitative and qualitative approach to get an in-depth understanding of the subject matter. The convenience sampling technique was to collect the data where 156 samples were collected using a survey questionnaire from the consumer who bought frozen food from the department store in the Balaju area of Kathmandu. Along with this in-depth interview was taken with the store representative to find out the highly preferable frozen food. A test of ANOVA was run to understand the relationship between demographic variables and motivation factors and purchase intention. The correlation coefficient was used to test the relationship between dependent and independent variables. Research findings reveal that there is no significant relationship between age, gender, and employment status on motivation factor and purchase intention, however, the finding revealed that there is a significant relationship between education and purchase intention. Similarly, the research uncovered that the consumer’s motivation in regards to purchasing frozen food is highly dependent on intrinsic factors (taste, ingredients, nutritional value, value for money), and extrinsic factors (brand, advertisement, convenience, education). Along with this study also revealed on a household, the most purchase frozen food product is frozen MO: MO and on industrial related with the restaurant and hotels, the most purchased frozen food product is the frozen green peas, French fries, and sweet corn.</span></p> Sunita Dabadi, Binit Gurung Copyright (c) 2020 Research Management Cell, Shanker Dev Campus Thu, 31 Dec 2020 00:00:00 +0000 Impact of Corona Virus pandemic on Different sectors of Nepalese Economy <p>Novel coronavirus (COVID-19) causing persistent drumbeat of positive tests and reported deaths across the globe, has created widespread crisis in Nepal as well. The crisis has already led into an economic and labour market shock, impacting both on demand and supply chain. Due to the outbreak of this deadly coronavirus, Nepal has started to suffer the most abrupt and widespread cessation of economic activity. The goal of this paper is to study the emerging and rapidly growing literature on the impact of COVID-19 on various economic and social sectors and to synthetize the insights emerging from a very large number of studies. This study summarizes the literature on the socio-economic consequences of corona virus and consequent lockdown imposed by government on Nepal. This study revealed that COVID-19 has negatively impacted macro economy of country lowering national GDP, decreasing revenue collection, slowing economic growth rate, decreasing wage rate, price inflation and causing loss of employment opportunities. The study showed that almost every sector of socio-economics has been slowed down that adversely effect on country’s economy. The effect are identified on Remittance, Labour and Employment, Tourism, Education and Agriculture (Dairy, vegetables and Poultry) .The uncertain impact of the COVID-19 pandemic on Nepal’s social economy will magnify depending on how events unfold on three fronts; i) its dependence on tourism, trade, and foreign employment and the consequences that will propagate through the services and industrial landscape; ii) if or when the spread of the pandemic overwhelms a grossly inadequate health infrastructure and antivirals or vaccine become available and iii) Nepal’s heavy geo-economic reliance on India and China, and the nature of contagion in those countries.</p> Nirdosh Khanal Copyright (c) 2020 Research Management Cell, Shanker Dev Campus Thu, 31 Dec 2020 00:00:00 +0000 Job Design, Compensation and Commitment of Employee in Service Sector Organizations of Nepal <p class="Default"><span style="font-size: 10.0pt;">This study is based on the impact of Job design and Compensation system on employee commitment of service sectors of Nepal. The variables job design and compensation system are taken as independent variables whereas employee commitment is dependent variable. In this research work it is found that job design and compensation system have positive correlation with employee commitment. However, while analyzing the beta coefficient, it is found that sensitivity to job design is high followed by compensation system for employee commitment. It means that if Nepalese service sector invests a significant amount and effort for development of proper job design and to develop proper compensation system, they can improve employee commitment for accomplishment of assigned job in an effective way.</span></p> Gopal Man Pradhan Copyright (c) 2020 Research Management Cell, Shanker Dev Campus Thu, 31 Dec 2020 00:00:00 +0000 Determination of Interest Rate in Nepalese Finance Companies <p><span class="fontstyle0">Finance companies are the institutions that are incorporated under company act to perform non-banking<br>activities arrangements and operation of different schemes. The finance companies survive by making<br>profit which is the interest spread i.e. difference between interest received and interest charged. The<br>main aim of this paper was to determine the responsible factors for the interest rate determination<br>of Nepalese financial companies. The factors affecting interest rate charged and offered by Nepalese<br>financial companies are analyzed using Regression Analysis. Out of the total financial companies only<br>two ICFC Finance Company and United Finance Company are taken as samples. Secondary data are<br>collected from various publications, websites, and annual reports. Interest rate on deposit of ICFC<br>Finance has significant negative association with inflation rate and significant positive relation with<br>interest rate on loan and advance of the company. Similarly, interest rate on loan and advance of the<br>company has significant positive relation with interest rate on deposit and interest rate on loan and<br>advance also has positive relation with inflation rate. Interest rate on deposit of United Finance has<br>significant negative association with inflation rate and significant positive relation with interest rate<br>on loan and advance of the company. Similarly, interest rate on loan and advance of the company has<br>significant positive relation with both interest rate on deposit and inflation rate.</span> </p> Bhoj Raj Ojha Copyright (c) 2021 Research Management Cell, Shanker Dev Campus Thu, 31 Dec 2020 00:00:00 +0000