The main purpose of the study is to examine the impact of firm specific variables on stock price volatility and stock return in context of Nepalese commercials banks over the period of 2008/09 to 2015/16. This study employs causal comparative research design which deals with how bank specific variables, specifically, leverage ratio, market capitalization, growth of assets, earning price ratio, dividend yield and book to market effect on stock price volatility and stock return. The study reveals a positive relationship between leverage, market capitalization, dividend payout and dividend yield with stock return which indicates that higher the market capitalization, leverage, dividend payout and dividend yield ratio, higher would be the stock return. Likewise, there is negative relation between book to market, growth of assets, and earning price ratio with stock return which reveals that higher the book to market, growth of assets and earning price ratio, lower would be the stock return. Similarly, leverage, dividend payout, and dividend yield have positive relation with share price volatility, which shows higher the leverage, dividend payout and dividend yield, higher would be the share price volatility. However, there is negative relationship between market capitalization, book to market, growth of assets and earning price ratio which showing higher the market capitalization, book to market, growth of assets and earning price ratio, lower would be the share price volatility.