IDEAS home Printed from https://ideas.repec.org/a/ags/afjecr/362948.html
   My bibliography  Save this article

Stock Market Returns Volatility and Its Effect on the Growth of the Listed Companies in Kenya

Author

Listed:
  • Ngigi, Daniel
  • Njuguna, Angelica

Abstract

In this paper, we analyze the effect of stock returns volatility on the growth of listed companies in Kenya under the Nairobi Securities Exchange 20 share index. We specified a dynamic panel data model used to capture this relationship. Using a panel of 228 observations from 19 listed companies over a period of 12 years from 2011 to 2022, we estimated both the difference and the system GMM. The findings show that stock returns volatility has a robust adverse effect on the growth rate of listed companies in Kenya. Further, the estimated model results support the theory that the growth of firms depends on their liquidity and retention ratios. These findings are critical to policymakers, investors, and companies as they strategize their effective portfolio allocations and interventions in the presence of a volatile market, as well as adding literature to the broader academic discourse.

Suggested Citation

  • Ngigi, Daniel & Njuguna, Angelica, 2024. "Stock Market Returns Volatility and Its Effect on the Growth of the Listed Companies in Kenya," African Journal of Economic Review, African Journal of Economic Review, vol. 13(2).
    • Handle: RePEc:ags:afjecr:362948
    DOI: 10.22004/ag.econ.362948
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/362948/files/ajol-file-journals_540_articles_297014_68398706affa9.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.362948?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:afjecr:362948. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://www.ajol.info/index.php/ajer/index .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.