dc.contributor.author | Loltianya, Thomas S | |
dc.date.accessioned | 2013-03-19T06:38:17Z | |
dc.date.issued | 2012-10 | |
dc.identifier.uri | http://erepository.uonbi.ac.ke:8080/xmlui/handle/123456789/14556 | |
dc.description.abstract | Market capitalization is an important measure for investors in the determination of the
returns on their investment. Day-to-day stock price fluctuations provide freely available
information on the health of a publicly traded company. Market capitalization represents
the public consensus on the value of a company's equity. Efficient stock market theory
states that stock price can reflect all relevant information about a company’s historical or
present and public or private. Market capitalization can denote the amount of a
company's future cash flows to its shareholders, primarily the dividends, and the riskiness
of receiving the cash flows, effectively the expected rate of return. The objective of this
study was to establish the relationship between market capitalization and profitability of
commercial banks listed at the NSE.
The study used cause and effect research design. The population of this study comprised
of 10 commercial Banks quoted at the NSE as at 31st December 2011 because of the
readily available data on share prices. The data was collected from the NSE handbooks
for the period ranging from 2007 to 2011 due to limited availability of data and high level
of changes in the number of commercial banks listed. The study established that there
was a weak positive relationship between market capitalization and the profitability of
commercial banks.
The study concludes based on the data presentations in chapter four and the summary of
the findings above that market capitalization affects the profitability of commercial banks
in Kenya and at the same time, the profitability also affects the market capitalization. The
study also indicates that although there is a relationship, it is weak and may not be the
sole determinant of the changes witnessed in each variable from time to time. Each
variable is influenced by other variables beyond those discussed in this study | en |
dc.language.iso | en | en |
dc.publisher | University of Nairobi | en |
dc.subject | relationship | en |
dc.subject | market capitalization | en |
dc.subject | profitability | en |
dc.subject | commercial banks | en |
dc.subject | nairobi securities exchange | en |
dc.title | The Relationship Between Market Capitalization and Profitability of Commercial Banks Listed on the Nairobi Securities Exchange | en |
dc.type | Thesis | en |
local.publisher | School Of Business, University Of Nairobi | en |