This study sought to determine the economic factors predicting IPO share price volatility at the Nairobi Securities\nExchange under the mediating role of regulatory authorities such as the Central Bank of Kenya, Capital Markets\nAuthority, Nairobi Securities Exchange and National Treasury, and the intervening function of Investment banks,\ncommercial banks, brokerage houses, media and politics. Through a correlational research design employing\nsimple regression, the results are contradictory on the economic indicators and their effect on different sectors of\nthe economy. With the exception of Equity bank which showed a positive relationship with interest rates, Foreign\nexchange, Nairobi Securities All Share Index and Lagged Share Price, KenGen and Safaricom showed no significant\nrelationship with their economic predictors. A reworked model comprising inflation rate, interest rate, foreign exchange\nrate and money supply captured the overall market prediction with the initial three having negative significance\nwhereas money supply had positive significance as a predictor of share price volatility.
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