Moderating Effect of Firm Size on Financial Reporting and Share Price of Manufacturing Firms Listed at Nairobi Securities Exchange
Pages : 1271-1275Download PDF
This study aims at establishing the moderating effect of firm size on financial reporting and share price of manufacturing firms. The study targeted the finance managers of all nine manufacturing firms listed in the Nairobi Securities Exchange. Secondary data was collected from the Nairobi Securities Exchange reports between 2012- 2016 through documents analysis. The study adopted a longitudinal research design approach. Reliability was achieved by pre-testing of the questionnaires and validity was ensured by discussing the relevance of the research instrument with the supervisor and testing using Cronbach’s alpha coefficient at 0.7 which was acceptable. Data was analyzed through inferential and descriptive statistics. Quantitative data was analyzed by use of descriptive statistics. Regression analysis was used in determining whether the independent variable predicts the given dependent variable. The inferential results indicated that the coefficient for firm size is 29.243 with a significant level of 0.0064 hence significant. This is because the ANOVA findings conducted showed that the significance levels for firm size. The findings further showed that the researcher should reject hypotheses which stated that there is no significant moderating effect of relationship between firm size and the share price. The findings were presented in the form of tables. The study will be of importance to academicians, practioners as well as policy makers at the Nairobi Securities exchange. Further studies need to be done on the firms which are not listed and also on manufacturing firms listed in other countries.
Keywords: Firm Size, Financial Reporting, Share Price, Securities Exchange, Listed