Relationship Between Earnings Management and Stock Market Returns Among Companies Listed in Nairobi Securities Exchange
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Date
2015-10Author
Oduma, Chrispine O
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The main objective of this research study was to establish the relationship between
earnings management and stock market returns among companies listed in Nairobi
Securities Exchange. The study adopted a descriptive research design aimed at
investigating the relationship between earnings management and stock market returns
among companies listed in Nairobi Securities Exchange. The population of the study
consisted of 66 companies quoted in the Nairobi Securities Exchange as at 31st December
2014. The study used a census approach. The study found that earnings management,
firm size, and market to book value ratio, influenced stock return. All of the variables
influenced it positively. The results show that the intercept was 1.103 for all years.
The study found that the coefficient for earnings management was 0.852, meaning
that earnings management positively and significantly influenced the Stock return
among companies listed at the Nairobi Securities Exchange in Kenya. The study also
found that the coefficient for firm size was 0.654, meaning that Firm size positively
and significantly influenced the stock return among companies listed at Nairobi
Securities Exchange. The study concluded that the coefficient for market to book
value ratio was 0.231, meaning that market to book value ratio positively and
significantly influenced the stock return among companies listed at Nairobi Securities
Exchange.
Publisher
University of Nairobi