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Title: | Effect of market value ratios on stock price volatility of listed companies on Nairobi securities exchange in Kenya |
Authors: | Wanda, Joseph Angote Tenai, Joel Kimwolo, Andrew |
Keywords: | Market value ratios Stock price volatility Listed companies Nairobi securities exchange |
Issue Date: | 2022 |
Abstract: | Stock price volatility is widely regarded as one of the factors eroding investor confidence in the world's money markets. The share price fluctuates dramatically depending on a variety of factors. Knowledge of such factors and their potential impact on share prices is highly valuable because it enables investors to make sound investment decisions and firms to increase their market value. This article examined the effect of market to book value ration and earnings per share on stock price volatilities of listed firms in Nairobi Securities Exchange (NSE). It employed a longitudinal research design specifically random effect model and fond substantive evidence that both market to book value ratio and earnings per share are negatively affect stock price volatilities. Stock price volatilities varied from one firm to the other. These deviations may be as a result internal and external factors. Both have an impact on stock price fluctuations. The article suggests these internal factors may include the company's earnings, annual asset growth, liquidity, total net worth, and sales. External factors include government policies and their impact, other maybe interest rate movements, currency exchange rate fluctuations, and market sentiment, and the merger. |
URI: | http://ir.mu.ac.ke:8080/jspui/handle/123456789/6877 |
ISSN: | 10.24940/theijbm/2022/v10/i3/BM2201-023 |
Appears in Collections: | School of Business and Economics |
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