Abstract:
Investment decisions by investors depends on stock price volatility. Earning per share is commonly used for
showing the performance of a company to investors and financial analysts.This study therefore intended to
investigate the impact of earnings per share on share price volatility of listed firms on the Nairobi securities
exchange in Kenya. The study period was from 2008 to 2019. Data for this study was extracted from annual
reports of listed companies and the Nairobi stock exchange handbook. Inclusion and exclusion sampling
method was used to obtain the sample for the study. The dependent variable is stock price volatility, earnings
per share is the independent variable whereas firm size, growth and leverage are the control variables. The
outcome documents that earning per share is negatively related to share price volatility and is statistically
significant. Based on the results of the study, it is evident that earning per share affect the share price volatility
offirms in Kenya.The results also revealed that firm size and firm growth are negatively related to share price
volatility and significant leverage is negatively related share price volatility though insignificant.The study
therefore concludes that earnings per share impact share price volatility of listed companies on Nairobi
securities exchange in Kenya.
