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A Survey of Stock Market Reaction to Public Information

Abstract :
The paper analyzes respondents’ opinions collected through a self-administered, structured questionnaire survey on securities investors’ attitudes towards the information flow and the factors that influence market prices of listed companies’ shares at the Nepal Stock Exchange (NEPSE). The survey was conducted in June 2007 in the Kathmandu valley, which comprised a set of 10-questions. Of the 124 questionnaires distributed to individual securities investors, 93 responses were usable, i.e., response rate was 75 per cent. The study found that shares of commercial banks, development banks and finance companies were more popular among the Nepalese investors. Similarly, capital appreciation was the main important motive behind investing in the shares. Most of the respondents found to have strong belief on impact of new information of price movement of the Nepalese stock market based on the flow of new information; it indicated that the Nepalese stock market was sensitive to new public information.


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