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Influence of credit risk on shareholder market value of commercial banks listed in Nairobi Securities Exchange

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  • Kellen Kiambati

    (Karatina University, Nyeri, Kenya)

Abstract

This study examines the influence of credit risk on the shareholder market value of commercial banks listed in the Nairobi Securities Exchange. A mixed-method approach and concurrent design were used in this study. Logistic regression was performed to ascertain the influence of credit risk on shareholder market value of commercial banks listed in the Nairobi Securities Exchange as a quantitative method and processes tracing as a qualitative approach to trace the causal mechanism by which credit risk contributes to shareholder market value. This research demonstrated that (i)there is a relationship between credit risk and shareholder market value among the commercial banks listed in NSE; (ii) Wald (1) =41.475, p=.000, sig

Suggested Citation

  • Kellen Kiambati, 2020. "Influence of credit risk on shareholder market value of commercial banks listed in Nairobi Securities Exchange," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(2), pages 107-117, March.
    • Handle: RePEc:rbs:ijbrss:v:9:y:2020:i:2:p:107-117
    DOI: 10.20525/ijrbs.v9i2.613
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    2. Rim Zouari‐Hadiji, 2023. "Financial innovation characteristics and banking performance: The mediating effect of risk management," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 1214-1227, April.

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