EFFECT OF VOLUME OF SHARES TRADED ON SHARE PRICES OF FIRM'S LISTED ON NAIROBI SECURITY EXCHANGE
DOI:
https://doi.org/10.47672/ajf.157Keywords:
volume of shares, share prices, Nairobi security exchangeAbstract
Purpose: The purpose of this study was to establish the effect of volume of shares traded on share prices of firm's listed on Nairobi Security Exchange.
Methodology: The study was carried out using descriptive research design. The target population consisted all companies listed on the NSE, and had previously done a rights issue. Convenient sampling technique was used to identify firms that had rights issue in the period under study. Secondary data was collected using a schedule developed by the researcher. Data analysis was done using events study methodology and regression modelling.
Results: Based on the findings the study found out that there existed a negative relationship between volume of shares traded and the share price. Specifically, the share price is negative (β=-0.909) and significant (p-value = 0.000) at 5% and that 9.4 percent of the variations in volume of shares traded were explained by the variations in share prices
Unique contribution to theory, practice and policy: Based on the findings the study recommends that further studies to be done on the impact of bonus issues, IPOs, and the global economic crisis (2008-2009) on stock returns of companies listed at the NSE.
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Copyright (c) 2017 Batista J. Mariko, Theuri J. M
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