Relationships Among Liquidity, Credit Risk and the Market Value of Commercial Banks Listed at the Nairobi Securities Exchange

Abstract

Market value provides an important tool to investors for measuring the return on investment. Habitual volatility of stock prices provides free helpful information about the wellbeing of a company. Banking is recorded as one of the critical mainstays of Vision 2030 in Kenya. The target of this investigation was to build up the connections among liquidity, credit hazard and the market estimation of Commercial Banks Listed at the Nairobi Securities Exchange. This examination was guided by the shift ability hypothesis, monetary misery hypothesis, just as the data lopsidedness hypothesis. The investigation utilized an engaging examination. The investigation populace was all the recorded banks in NSE. The investigation gathered auxiliary information throughout the previous five years beginning year first January 2015 to 31st December 2019 from the yearly reports dispatched to the Central Bank of Kenya accessible on the CBK site and Central Bank of Kenya Resource Center. Illustrative just as inferential insights were utilized to perform investigation. The engaging insights establish focal inclination estimates which involve implies, standard deviations just as recurrence circulation. Inferential measurements includes relapse just as relationship investigation which was embraced to set up the relationship between the examination factors. The examination discoveries set up that there is a positive and huge connection among liquidity and market estimation of recorded business banks. The examination discoveries set up that there is a negative and critical connection in the midst of credit danger and market estimation of recorded business banks in Kenya. The examination dependent on this finding finishes up a presence of a critical negative connection between financing cost and market estimation of recorded business banks in Kenya. The examination discoveries set up a positive and huge association presence between resource quality and monetary execution of business banks.