Title:
The Effect of Non-financial Asset Disclosures on Market Returns of Manufacturing Firms at Nairobi Securities Exchange in Kenya

Authors:
Wickliff Otera Maranga, Dr. Vitalis Mogwambo PhD, Dr. Simeyo Otieno, PhD, Kenya

Abstract:

This study examined the effect of non-financial asset disclosures on the market returns of manufacturing firms listed on the Nairobi Securities Exchange (NSE) in Kenya. The research was motivated by the increasing demand for transparency in corporate reporting, particularly in emerging markets where non-financial disclosures are often underreported. Using a sample of 8NSE-listed manufacturing firms, the study employed simple linear regression to assess the relationship between non-financial asset disclosure impact and market returns. The findings revealed a statistically significant but modest positive relationship (R = 0.290; R² = 0.084; p = 0.033), indicating that non-financial disclosures explain approximately 8.4% of the variance in market returns. These results suggest that while such disclosures do influence investor confidence and firm valuation, other factors contribute more substantially to market performance. The study concludes that enhanced transparency in non-financial reporting can serve as a strategic tool for firms aiming to improve market returns. It recommends the adoption of standardized reporting frameworks like the Global Reporting Initiative (GRI) and Integrated Reporting (IR) to better align corporate disclosures with stakeholder expectations and long-term firm value.

DOI: https://doi.org/10.51505/IJEBMR.2025.9513