Abstract: The General objective of this research was to assess the determinant of market performance of commercial banks in Kenya. The specific objectives of this project were to establish the effect of capital structure, bank size, loan structure and bank liquidity on market performance of commercial banks in Kenya. The study adopted secondary data analysis research design. The observations used dated from January the year 2012 to December 2015 and included48 monthly observations. The population composed of all the 42 commercial banks in Kenya. The data was obtained from Kenya National Bureau of statistics, the central bank and audited financial statements of individual banks. Correlation and multiple regressions were employed as the analytical tools. The study had been driven by the absence of laborious studies that address the dynamics of the market performance in commercial banks in Kenya. The research was also motivated by the mixed results that various previous researchers got for the same types of the variables. The study was also helpful to other researchers as a source of reference and as a stepping stone for those who wanted to make further study on the area afterwards. The study findings established that size positively affects bank market performance. Capital structure had an inverse relationship with market performance of commercial banks while bank loan growth was negatively correlated with market performance. Moreover, the study established that liquidity is significantly and positively related with the market performances of commercial banks.
Keywords: Liquidity, Capital Adequacy, Bank size and Market capitalization.
Title: Determinant of Market Performance of Public Commercial Banks in Kenya
Author: ABDULLAH MOHAMED, DR. SAMSON NYANG’AU
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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