The Effect of Voluntary Disclosure on Stock Market Returns of Companies Listed at the Nairobi Securities Exchange

Citation:
M.Mwangi, J.K.Mwiti. "The Effect of Voluntary Disclosure on Stock Market Returns of Companies Listed at the Nairobi Securities Exchange." International Journal of Business and Social Science. 2015;6(1):99-105.

Abstract:

Voluntary disclosure is aimed at providing a clear view to stakeholders about the business’s long-termsustainability and reducing information asymmetry and agency conflicts between managers and investors. Theobjective of this study was to determine the effects of voluntary disclosures on stock market returns of companieslisted at the Nairobi Securities Exchange. The study sampled twenty firms for the period 2009 to 2013. Itemployed multiple linear regression of market performance of the firms in the five year period against voluntarydisclosure, exchange rate, interest rate and rate of inflation.The results were that each of the factors waspositively related to market performance for firms listed at the NSE. The study recommends companies to havevoluntary disclosure above the statutory requirements set by the regulatory agencies as it can result in increasedstock returns.

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