The research examined the effects of earnings and dividend payout on the stock prices of the listed companies on NEPSE. The data on the panel were based on 16 companies which were listed and included in the sample that represented various sectors, during the fiscal years 2071/72 to 2080/81. Convenience sampling method was used since very few companies pay out dividends on a regular basis. Thus, the sample consisted of the companies that made no less than eight years consecutive dividend payments.

Firm-specific variables (namely dividend yield, dividend payout ratio, market-to-book ratio, price-to-earnings ratio, and firm size) were considered the explanatory variables, and the dependent one was the price of stock. The association of the independent variables with stock price was analyzed based on panel regression analysis. Three diagnostic tests were carried out in order to establish the most appropriate model. The findings showed that the most appropriate model of analyzing the gathered data is fixed effects- model.