Stock Market Liquidity and Financial Distress Likelihood Among Listed Firms in Nairobi Securities Exchange, Kenya

Journal of Economics, Finance and Accounting Studies

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Field Value
 
Title Stock Market Liquidity and Financial Distress Likelihood Among Listed Firms in Nairobi Securities Exchange, Kenya
 
Creator Koske, Naomi
Tuwei, Joel Kiplagat
Kimwolo, Andrew Kimutai
 
Subject Financial Distress Likelihood, Stock Market Liquidity, Listed Firms
 
Description Our study examines whether there’s a relationship between stock market liquidity and the likelihood of financial distress among listed firms in Kenya. This study was grounded on feedback theory. The study employed panel analysis for a period covering ten years from 2006-2015. The target population comprised all 64 listed firms in Nairobi Securities Exchange. Secondary firm-level panel data was gathered from year-end financial reports for the period 2006-2015. Standard multiple regression analysis was used to analyze and test the hypotheses. The study found a negative and significant effect of stock market liquidity (β=-1.842; p<0.05) on likelihood of financial distress. This finding revealed that stock market liquidity plays an important role in enabling firms to be financially stable and reduces chances of becoming financially distressed. This study recommends that the firms should take keen scrutiny of their financial structures. Further research should focus on other possible market structures that can be used to lower and avoid likelihood of financial distress.
 
Publisher Al-Kindi Center for Research and Development
 
Date 2019-12-30
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://al-kindipublisher.com/index.php/jefas/article/view/197
 
Source Journal of Economics, Finance and Accounting Studies ; Vol. 1 No. 1 (2019): Journal of Economics, Finance and Accounting Studies; 28-38
2709-0809
 
Language eng
 
Relation https://al-kindipublisher.com/index.php/jefas/article/view/197/412
 
Rights Copyright (c) 2019 Journal of Economics, Finance and Accounting Studies
https://creativecommons.org/licenses/by-nc/4.0
 

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