SOCIAL ACCOUNTING DISCLOSURES AND MARKET VALUE OF LISTED INSURANCE FIRMS IN NAIROBI SECURITIES EXCHANGE, KENYA
Abstract
This study aimed at studying social accounting disclosures and market value of listed insurance firms in Nairobi securities exchange, Kenya. The objectives for the study were; to study human resource accounting, environmental accounting, community involvement disclosures, consumer product disclosure and the respective market value of insurance companies listed in NSE, Kenya. The targeted population was all listed insurance companies in Kenya for the period 2019-2023. Secondary sources of data were utilized for the entire study and the census method was used in data collection. Tobin’s Q ratio was used in measuring the firm value and the data was analyzed using regression method. Results show a significant positive relationship of social accounting disclosures on the insurance firm's market value. The relation between consumer and product accounting, community involvement accounting disclosures were strong, positive and significant on market value. Human resource accounting disclosures has a moderate relationship with market value while environmental accounting disclosures has a weak relationship on the market value of listed Insurance Firms in the NSE from 2019 to 2023. Policymakers should develop a guideline for the disclosures of human resource accounting and then make sure that the firms comply with the guidelines. This would help in standardizing the disclosures regarding human resource accounting for all the firms. Firms should integrate environmental sustainability goals into their broader business strategies. Highlighting measurable outcomes, such as reduced carbon emissions or increased energy efficiency, can demonstrate tangible value to stakeholders and investors, thereby enhancing market valuation. Insurance firms should invest in impactful community involvement programs, such as education, healthcare, and environmental conservation projects. As well firms should ensure strict adherence to all community laws and regulations. This includes maintaining transparency in legal compliance and disclosing efforts to meet local governance and community standards in their reports. The firms should also embrace consumer product disclosure which includes; fee, interest, past performance, suitability of product and risk involved.
Key words: Social Accounting, Market Value, Disclosure, Human Resource
CITATION: Orenge, J., Oluoch, J., & Miroga, J. (2025). Social accounting disclosures and market value of listed insurance firms in Nairobi Securities Exchange, Kenya. The Strategic Journal of Business & Change Management, 12 (2), 668 – 675. http://dx.doi.org/10.61426/sjbcm.v12i2.3234
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DOI: http://dx.doi.org/10.61426/sjbcm.v12i2.3234
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