A comparative event study on mergers and acquisitions vs corporate bond issuance on the value of banks in Kenya
Date
2017
Authors
Odawa, Janet Consolata Akinyi
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Banks play a crucial role in propelling the entire economy of a nation. African bond markets have been steadily growing in recent years as the numbers of mergers and acquisitions also rise. This study takes on an event study methodology with the use of the market model to determine the impact of events such as M & A’s and corporate bonds issued by listed banks in Kenya. It was found that in comparison mergers and acquisitions have a greater impact on firm value than bond issuance. However both bear the same results in terms of how they impact firm value. They can impact firm value, positively, negatively or not at all.
Description
A Research project submitted in partial fulfillment of the requirements for the degree of Bachelor of Business Science in Actuarial Science at Strathmore University
Keywords
Corporate bond issuance, Mergers, Acquisitions, Banks