Price Volatility Mitigation and the Securities Market Financial Performance of Listed Insurance Firms at Nairobi Securities Exchange.
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The performance of securities market globally plays an important role in both local and international markets. The high rise of such markets has given an increase in the number or risks associated with firms registered at the stock market. This study therefore sought to examine the effect of price volatility mitigation on the securities market financial performance of listed insurance firms in Kenya. The study adopted a descriptive research design and a quantitative research approach. The target population was 548 staff working in finance, investment, risk, actuarial and operations departments in the six insurance firms listed in Nairobi Securities Exchange. The sample size was determined using Yamane's Formula and stratified random sampling was used in the selection of the sample size. The study made use of both primary and secondary data. The study used a data extraction tool to collect secondary data from the annual reports and financial statements of the insurance companies. The study made use of structured questionnaires to collect primary data. The questionnaires generated quantitative data. Descriptive and inferential statistics was used in analyzing quantitative data with the help of the Statistical Package for Social Sciences (SPSS version 24) statistical software. Descriptive statistics included frequency distribution, percentages, mean, and standard deviation. Inferential data analysis was done using Pearson correlation coefficient and linear regression analysis. The study found that price volatility mitigation has a positive and significant effect on securities market financial performance of listed insurance firms in Kenya. The study recommends that insurance firms should focus on implementing strategies to effectively manage supply and demand dynamics within the securities market. This includes closely monitoring market trends, analyzing supply-demand imbalances, and adjusting pricing and stock clearance strategies accordingly. By actively managing supply-demand dynamics, firms can mitigate price volatility risks and enhance securities market financial performance