The Effect of Breadth of Ownership on Stock Performance for Firms Listed at the Nairobi Securities Exchange, Kenya

Timothy Juma Okello, Z. Onsomu
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Abstract

The study sought to determine the effect of breadth of ownership on stock performance of firms listed at the Nairobi Securities Exchange (NSE), Kenya. In this research, descriptive research design was used and the population of the study was 63 firms that were listed as at 31 st December 2019. However, only listed firms that had consistently traded during the period of study were considered. As such, only 47 companies qualified to be in the study. Yearly data for five years (December 2015 to December 2019) was collected and analyzed. Results showed that the adjusted R-Square was 0.197 which indicated that 19.7% of variance in stock performance of firms that are quoted at the NSE are explained by breadth of ownership and the control variables (size and dividend). The F – statistic was 0.006 (<5%) which implied that breadth of ownership, firm size and dividend policy collectively significantly influence stock performance for companies that are listed at the NSE. Results from the regression analysis showed that breadth of ownership (P-value=0.048) and firm size which was a control variable had a significant relationship with performance of stock at 5% significance level (p-value = 0.001) Dividend policy (control variable) had a positive but insignificant relationship with stock performance at 5% significance level. A negative association between size of company (control variable) and stock performance of listed firms at the NSE was evidenced. The study recommends that firms with a higher number of shareholders continue increasing their shareholders as it has been established that firms with many shareholders have higher stock performance. Further, the study recommends the listed firms should take into consideration the company size as it negatively affects performance. The study recommends that listed firms should increase their dividend payout since dividends are used as benchmarks for the degree of expected future growth. The study suggests that further research should be done in stock markets across the East African region to enable comparison of results and generalization of the findings.
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持股广度对肯尼亚内罗毕证券交易所上市公司股票绩效的影响
该研究试图确定在肯尼亚内罗毕证券交易所(NSE)上市的公司的股票业绩的广度所有权的影响。在本研究中,采用描述性研究设计,研究对象为截至2019年12月31日上市的63家公司。然而,仅考虑在研究期间持续交易的上市公司。因此,只有47家公司有资格参与这项研究。收集并分析了5年(2015年12月至2019年12月)的年度数据。结果表明,调整后的r平方为0.197,这表明在NSE上市的公司股票表现的19.7%的方差是由所有权广度和控制变量(规模和股息)解释的。F -统计量为0.006(<5%),这意味着所有权广度、公司规模和股息政策共同显著影响在NSE上市的公司的股票表现。回归分析结果显示,持股宽度(p值=0.048)和公司规模(p值= 0.001)作为控制变量与股票业绩在5%显著水平上存在显著关系(p值= 0.001),股利政策(控制变量)与股票业绩在5%显著水平上存在显著关系。公司规模(控制变量)与NSE上市公司的股票绩效之间存在负相关关系。该研究建议,拥有更多股东的公司应继续增加其股东,因为已经确定拥有更多股东的公司具有更高的股票绩效。此外,研究建议上市公司应考虑公司规模,因为它会对业绩产生负面影响。研究建议上市公司应增加股息支付,因为股息是衡量预期未来增长程度的基准。该研究表明,应该在整个东非地区的股票市场进行进一步的研究,以便对结果进行比较并推广研究结果。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
Journal of Economics, Finance and Administrative Science
Journal of Economics, Finance and Administrative Science Economics, Econometrics and Finance-Economics, Econometrics and Finance (all)
CiteScore
5.10
自引率
20.80%
发文量
23
审稿时长
12 weeks
期刊介绍: The Universidad ESAN, with more than 50 years of experience in the higher education field and post graduate studies, desires to contribute to the academic community with the most outstanding pieces of research. We gratefully welcome suggestions and contributions from business areas such as operations, supply chain, economics, finance and administration. We publish twice a year, six articles for each issue.
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