Journal Press India®
Effect of Information Symmetry on Value of Firms Listed in Nairobi Securities Exchange
Vol 10 , Issue 1 , January - June 2023 | Pages: 100-114 | Research Paper
Published Online: June 03, 2023
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Financing decisions are made taking into account specific financing decisions determinants for optimization such as information symmetry. This paper measures the effect of information symmetry on the value of the firm utilizing financial statements of listed firms at Nairobi Securities Exchange for 10 years from January 2008 to December 2017. It was guided by positivism research philosophy while cross sectional and explanatory research designs were employed. The researcher used purposeful sampling to derive a sample of 40 firms. Data was analysed using descriptive statistical methods of mean, percentages and standard deviation. Further Karl Pearson correlation coefficient and backward regression techniques were adopted in analysis. The findings revealed that information symmetry had significant effect on value of the firms listed in Nairobi Securities Exchange. It was recommended that information symmetry could be enhanced through close monitoring of compliance to corporate governance practices particularly on disclosure requirements.
Keywords
Information symmetry; Value of firms; Prospective investor; Financial markets; Nairobi Securities Exchange
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