CORPORATE SUSTAINABILITY AND MARKET SHARE PRICE AMONG LISTED COMPANIES IN THE NAIROBI SECURITIES EXCHANGE
CORPORATE SUSTAINABILITY AND MARKET SHARE PRICE AMONG LISTED COMPANIES IN THE NAIROBI SECURITIES EXCHANGE
Benjamin K. Nyamai - KCA University, Kenya
Fred Sporta (PhD) - KCA University, Kenya
ABSTRACT
Due to ever diminishing global resource base and the increasing global business competition, the perceived importance of corporate sustainability has been recognised by investors, governmental and non-governmental authorities, the academia and the business practitioners in greater proportion. The investors particularly are concerned with the effect of corporate sustainability on share pricing. The purpose of this research was to establish the impact of corporate sustainability on share pricing at the Nairobi Securities Exchange. The study was guided by these objectives; to determine whether value based performance of an organization influence share prices for the companies listed at the Nairobi Securities Exchange, to establish the influence of corporate social responsibility on prices of shares among listed companies in the Nairobi Securities Exchange, to find out the role of corporate citizenship on prices of shares among listed companies in the Nairobi Securities Exchange and to analyse how environmental stewardship influences the prices of shares among listed companies in the Nairobi Securities Exchange. The study used resource-based theory, stakeholder theory, ecological modernization theory as well as the agency theory. It adopted the descriptive research design with stratified sampling method. Secondary data as well as quantitative data was used to determine the relationship between the indicated variables. Data was analysed using STATA version 12 and data was presented in tables and graphs. The study established that environmental stewardship and value based performance have significant effect on share prices. The study concludes that corporate sustainability has significant effect on share prices. The study recommends that the management of all listed firms in Kenya should consider investing in environmental conservation programs so as to enhance on their share prices. Listed firms need to put in place or improve on their value based performance practices for improvement in share prices.
