Managerial Ownership and Stock Performance of Firms Listed at the Nairobi Securities Exchange

Abstract

The primary aim of the present investigation was to examine the correlation between managerial ownership and stock performance among companies quoted on the NSE. Study population comprised fifty-five companies registered at the NSE for the financial year 2021, and it was conducted as a census. The use of secondary data was employed and data was largely from the NSE Handbook 2017-2021 together with company websites and the CMA website. The evaluation of managerial ownership levels’ effect on stock performance was done using ANOVA. The outcomes of the investigation indicated a notable variation in managerial ownership levels, as established by the utilization of ANOVA (F (2,274) = 6.607, p = .002). The results of a Tukey post hoc test indicated a statistically relevant difference in stock performance between low managerial ownership (mean = 0.36, SD = 0.63) and medium/high managerial ownership groups. The significance was found to be 0.003. This is an indication that a low managerial level is associated with low stock performance. High managerial ownership is associated with high stock performance. Further studies are needed because this is an area that has limited empirical evidence locally.