Information content impact of stock splits - a case of the Kenyan market

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dc.contributor.authorIkonya, Brown
dc.date.accessioned2016-04-14T08:48:05Z
dc.date.available2016-04-14T08:48:05Z
dc.date.issued2015-11
dc.descriptionSubmitted in partial fulfillment of the requirements for the Degree of Bachelor of Business Science in Finance at Strathmore Universityen_US
dc.description.abstractStock splits from their definition are seen as purely cosmetic events that is, they should have no effect on the returns of the shares in question. However, studies have found numerous stock market effects associated with this event. This paper examines the effects of this event for the Kenyan Stock market. This research employed the event study methodology by Fama, Fischer et al (1969) and Brown and Warner ( 1980) using the stock split announcements of seven NSE listed companies that occurred during the year 2006 to 2012 and contribute further evidence as to the efficiency characteristics of the Kenyan stock market. The abnormal returns that arise due to this event are calculated using the Market Model and the significance is tested using t-tests. The results oft- tests on the average abnormal return (AAR) indicated that abnormal returns were significantly different from zero which implied that there is an anomaly with regards to stock split announcements regarded as news by NSE investors. The study established that there is a relationship between stock split announcement and performance of share prices of listed companies in the Nairobi Securities Exchange (NSE) in Kenya.en_US
dc.identifier.urihttp://hdl.handle.net/11071/4432
dc.language.isoenen_US
dc.publisherStrathmore Universityen_US
dc.subjectInformation contenten_US
dc.subjectStock splitsen_US
dc.titleInformation content impact of stock splits - a case of the Kenyan marketen_US
dc.typeOtheren_US
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