Download This PaperInfluence of Firm Financial Characteristics on Stock Return of Non-Financial Listed Companies in East Africa Securities Exchanges
American Based Research Journal, Vol. 8 Issue 03, March 2019
10 Pages Posted: 20 May 2020
Date Written: March 1, 2019
Abstract
Stock return movements can be adopted as a measure of growth and development of securities exchange and economy. There is a need for examination of the core determinants of stock return. Currently, it was hypothesized that there is causality between firm financial characteristics and the stock return of listed non-financial characteristics. This nexus was assumed to be moderated by shareholders concentration. Panel regression modelling was adopted to analyze the data. It was found firm value, financial health, liquidity, and leverage had a positive and significant influence on the stock return of listed non-financial companies in East Africa. In addition, there was a positive and significant moderating effect of shareholders concentration on the influence of firm financial characteristics on the stock return of listed non-financial companies in East Africa securities exchange.
Keywords: Financial Characteristics, Financial health, firm value, liquidity, leverage, stock return
Suggested Citation: Suggested Citation