DETERMINANTS OF FIRM VALUE OF SECURITIES FOR COMPANIES THAT HAD ISSUED INITIAL PUBLIC OFFERING AT THE NAIROBI SECURITIES EXCHANGE

Abstract

Firms are mostly faced with choices to make while sourcing short term, medium term and long term sources of finance. Listings in securities have advantages and mostly firms are initially listed through initial public offers. The current study sought to determine determinants of firm value among firms which had initial public offering in 2006 to 2016 in Nairobi securities exchange. The study covered research design, target population, sample size, sampling technique, data collection procedure, data analysis and presentation and test of regression assumptions. It also discussed the statistical measurement model used in the analysis and the tests for hypothesis. The study adopted descriptive research design. Secondary data was gathered from past published financial statements of targeted companies. Descriptive, correlation and regression analysis were adopted to analyse the data. Results of the study revealed positive and significant relationship between profitability, investment decision, financing decision and firm size on firm value. It was recommended that firms should adopt measures to increase their profitability. Invest on opportunities which give positive net present value. Seek financing from cheapest sources and intensify their sales operations.