This paper aims to assess the impact of heuristics on the investment decision by analysing the effect of four heuristic biases, i.e., representativeness, availability, anchoring and adjustment, and overconfidence bias on rationality of Nepalese investor's investment decision-making and also examines the moderating effect of the internal locus of control in between. The study used 391 respondents based on a convenient sampling procedure, and structured questionnaire survey. The study result indicates that there is a significant relationship between irrationality in investment decision-making and all four heuristic biases. In addition, the study also concludes that locus of control has significant moderating effect in the relationship between investment decisions and three heuristic biases, i.e., availability, representative and anchoring bias. However, the study documents no moderation effect in case of relationship with overconfidence bias.

This paper explores the parental and peer factors which influence the saving behavior of the youth. This paper is based on a structured questionnaire with various dimensions of the saving behavior, parental and peer influence. Judgmental and convenience sampling techniques were used to collect the data of 390 respondents from Kathmandu Valley who have completed Master’s degree and are employed. The study reveals that there is significant relationship between peer influence and saving behavior. Similarly, there is significant relationship between parental financial teaching and saving behavior. Independence, control, habit formation, encouraging saving are mechanisms that influences saving behavior. However parent’s encouragement to save highly affects the saving behavior. Therefore receiving financial teaching from parents ensures sound saving behavior.

The paper investigates the investment pattern of financially literate persons based on 314 individual investors of Nepal. The mean, ANOVA and logistic regression is used. The results show that investors have higher level of financial literacy level. Among them, male participants, investors of age group 20-30 and income level of Rs 50,001 and above scored higher in financial literacy. The financial literacy increased with increase in the education level as well as the income level. The study reveals that there are differences between investment patterns among the high and low financially literate persons. These groups differ in term of their investment preferences, investment objectives, investment tenure, sources of investment advices and awareness level.

The study focuses on market reaction to announcements of new unanticipated political events using the event analysis methodology. The findings of the study provide a consistent conclusion regarding the existence of information content hypothesis in the Nepalese stock market. The study reveals that good-news (badnews) political announcements generate positive (negative) abnormal returns in the post-event period. The data present important evidence on the speed of adjustment of stock prices to new political information, i.e., in as many as 2 to 3 days from the announcement date. Thus, this paper finds that the Nepalese stock market is inefficient at a semi-strong level, but there is a strong linkage between political uncertainty and common stock returns.

This study focuses to examine the firm specific fundamental variables impact on the stock returns in the context of Nepali banks. The study uses cross sectional panel data of 12 banks for the duration of ten years. The study finds the existence a negative relationship between stock returns (total yield) and firm size. Likewise, the study shows that the book to market equity has negative relationship with stock returns. However, the study reveals that the relationship of earnings yield and cash flow yield with the stock returns is contradicted in comparison to previous studies.