The Effect of Capital Structure on Stock Returns at Nairobi Securities Exchange: a Sectoral Analysis
Abstract
The study’s objective was to determine the effect of capital structure on stock
returns at Nairobi securities exchange: a sectoral analysis. The researcher adopted an
empirical research design. In this case, data was gathered relating to capital structure
on stock returns of firms quoted in the Nairobi Securities Exchange over a five year
period between 2011 and 2015. The target population for this study therefore
comprised of 48 presently listed companies in the Nairobi securities Exchange’s
main segment. This study collected secondary data relating to stock returns of the
listed companies at the Nairobi Stock Exchange for the period 2011 to 2015.
Secondary data was collected from the annual reports of the publicly listed
companies. Data analysis method was based on Pearson correlation analysis and a
multiple regression model conducted on Statistical Package for Social Sciences
(SPSS) on the accounting based measures of firm’s capital structure used in this
study. Adjusted R Square value and Analysis of Variance (ANOVA) was used to
test the significance of the model. The researcher then presented the findings using
appropriate graphs and tables. Research findings indicated that there is no
relationship between capital structure and stock returns for firms listed in the NSE.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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