Role Of Crossslisting On Financial Returns Of Kcb Group Of Companies, Kenya

Abstract

It is perceived that cross-listing domestic stocks in foreign exchanges have significant valuation effects on a cross listed company’s shares. The purpose of the study was to examine the role of cross listing on financial returns of KCB group, Kenya The study objectives were: to determine the effect of growth on financial returns of KCB group of companies, Transnzoia County. The study used a descriptive research survey design. The target population comprised employees KCB group of companies, Kenya. The target population comprised of 4 Regional Managers and 31 heads of department totaling to 35 respondents. A census sampling technique was employed in selecting the 35 respondents. The researcher used questionnaire as the main data collection method. The data was obtained through analysis from company’s annual reports, internet and NSE journals. The data collected was analyzed using descriptive methods and inferential statistics. Correlations was used to show the relationship between the independent variables. The regression model was used to compute the overall effect of the changes in the value of stock for the cross listed firm. H₀₁There is no significant relationship between growth and on financial returns of KCB group of companies, Kenya The study rejected the hypothesis (β = 0.597, P = 0.000). On the major way growth of cross listed firm affected their financial returns, the study concluded that it was by penetrating bigger markets. Based on the findings of the study, the following recommendations were made; Companies that want to increase the performance of their companies should adopt cross listing in different stock exchange market since companies that are traded in different markets attract more investors from different markets increasing their shareholder base which is significant for a company since it ensures that the company has more than sufficient resources to invest and increase the performance of the organization. Companies should aim to attract the best employees from the different market segments that they operate in since this ensures that the performance of the companies is top notch since the company is able to attract talent and innovation from the different market segments improving the financial returns of the company.

Keyword: Growth, Financial Performance