Effect of Product Pricing on Equity Return of Manufacturing Firms Listed at Nairobi Securities Exchange in Kenya

Abstract

Purpose of Study: The study aimed to assess how product pricing affects the equity return of manufacturing firms listed at the Nairobi Securities Exchange in Kenya. Research Design: The study employed both longitudinal and cross-sectional research designs. Place and Study Duration: the study covered manufacturing firms listed at Nairobi Securities Exchange in Kenya. Data was collected from the year 2008 to the year 2021. Research Methodology: The study's target population included 7 listed manufacturing companies in the Nairobi securities exchange. The current study relied on secondary data sources for the period between the year 2008 and year 2021 that was gathered from the Nairobi Securities Exchange, the capital market authority library and the annual reports of individual companies that were obtained from their websites. Descriptive and inferential measurements were used to evaluate the secondary data. Descriptive statistics comprised the mean and the standard deviation. Inferential statistics on the other hand comprised panel regression and Pearson's product-moment correlation analysis. Analysis was conducted using Stata 14 software to produce tables, graphs, charts, diagrams and statistical parameter estimates. Results: The findings showed that product pricing has a positive influence on the equity returns of listed manufacturing firms in the Nairobi Securities Exchange. Also, the influence was found to be significant. This meant that product pricing had a positive significant influence on the equity returns of listed manufacturing firms in the Nairobi Securities Exchange. The study, therefore, rejected the null hypothesis and concluded that product pricing has a positive significant influence on equity returns of listed manufacturing firms in the Nairobi Securities Exchange. Conclusions: According to the study's findings, product price has a favourable impact on the equity returns of manufacturing companies listed on the Nairobi Securities Exchange. The impact was also shown to be substantial. This indicated that product pricing had an important beneficial impact on the equity returns of manufacturing companies listed on the Nairobi Securities Exchange.