FINANCIAL INDICATORS AND STOCK MARKET PERFORMANCE OF LISTED NON-FINANCIAL COMPANIES IN KENYA

Kevin Mathara Kamau, Dr. Oluoch Oluoch, Dr. Julius Bichanga

Abstract


This study sought to determine whether firm financial indicators have an effect on market performance of stocks of listed non-financial companies in Kenya. The specific objectives of the study were to determine the effect of liquidity and cash flow on market performance of stocks of listed non-financial companies in Kenya. The study was carried out in non-financial companies listed in the NSE from 2016 to 2021. The study was a census study of 30 listed non-financial companies. The study used panel secondary data which was collected from the company annual audited financial reports and Nairobi stock exchange (NSE). A fixed effects panel regression model was used to determine the relationship between the study independent and dependent variables. The study findings were that liquidity and cash flow have a significant and positive effect on market performance of stocks of listed non-financial companies in Kenya. The study recommends that investor who want to invest in stocks with high return and high liquidity they should consider liquidity and cash flow in their investment decisions.

Keywords: Liquidity, Cashflow, Stock Return, Stock Liquidity


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