Impact of layoff announcements on stock performance of firms listed on the Nairobi securities exchange.

Simple item page
dc.contributor.authorBirech, Joyce Jelimo
dc.date.accessioned2017-09-11T12:30:32Z
dc.date.available2017-09-11T12:30:32Z
dc.date.issued2017
dc.descriptionA Research project submitted in partial fulfillment of the requirements for the Degree of Business Science Finance at Strathmore Universityen_US
dc.description.abstractDespite vast research on the impact of layoff announcements on stock price performance in developed markets, little is known of the same with regard to the Kenyan market. To this end, this study sought to determine the strength and nature of the relationship between layoff announcements and stock price performance for firms listed on the NSE. The study also set out to investigate the nature of the relationship between the reason for the layoff, as provided by management, and stock price reaction. To conduct the research, a sample often firms that had made layoff announcements over the period spanning 2011-2016 were studied so as to check whether there were any abnormal returns observed during the period surrounding the layoff announcement. To facilitate this, an event study methodology was used with an estimation period of 120 days and a 21-day event window. The findings of the study reveal that there exists no statistically significant relationship between layoff announcements and stock price reaction. However, the reason guiding the layoff decision has an impact on stock price movement. For layoffs that are proactive in nature, stock prices react positively but in cases where the layoff is reactive in nature, there is no impact on the stock price reaction.en_US
dc.identifier.urihttp://hdl.handle.net/11071/5424
dc.language.isoenen_US
dc.publisherStrathmore Universityen_US
dc.subjectStock performanceen_US
dc.subjectReturn on Equityen_US
dc.subjectReturn on Assetsen_US
dc.titleImpact of layoff announcements on stock performance of firms listed on the Nairobi securities exchange.en_US
dc.typeProjectsen_US
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
Impact of layoff announcements on stock performance of firms listed on the Nairobi securities exchange.pdf
Size:
17.1 MB
Format:
Adobe Portable Document Format
Description:
Full-text
Download
License bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed upon to submission
Description:
Download
Collections
BBSF Research Projects (2017)