| dc.description.abstract | In the recent past both the local and the international markets have a witnessed declining quality
of financial reporting. The poor quality financial reports have led to a mismatch between the
inherent values of shares and the book values hence contributing to market inefficiencies. This
study sought to provide an empirical evidence of the impact of poor financial reporting quality
on the Market Price per Share. The objective of the study was to examine the effect of financial
report quality on the share price. Financial reporting quality was measured in terms of the
qualitative characteristics of identified by IASB.During the investigations, the descriptive
research design was applied. The target population comprised of firms listed in the Nairobi
Securities Exchange between 2011 and 2017. However, since financial institution are under
tight regulations that greatly impact on their reporting, they were not investigated. From the
population, a sample of 60 firms were sampled using the stratified random sampling method.
Out of the 60, 13 were dropped for either having incomplete information or not having data on
their share prices. The study used content analysis in examining quality of financial reports of
the listed entities. Thereafter, inferential statistics of correlation and regression were used to
show the relationship between financial reporting quality and the Market Price per Share.The
findings of the study were that a change in Relevance, Faithful Presentation, Understand ability
and Timeliness leads to an increase in share prices while an increase in comparability leads to a
decrease in share prices. | en_US |
