EFFECT OF NEW INFORMATION FROM RIGHTS ISSUE ANNOUNCEMENT ON SHARE PRICES OF FIRM'S LISTED ON THE NAIROBI SECURITY EXCHANGE
DOI:
https://doi.org/10.47672/ajf.156Keywords:
new information, rights issue announcement, share prices, Nairobi security exchangeAbstract
Purpose: The purpose of this study was to establish the effect of new information from rights issue announcement on share prices of firm's listed on the Nairobi Security Exchange.
Methodology: The study was carried out using descriptive research design. The target population consisted all companies listed on the NSE, and had previously done a rights issue. Convenient sampling technique was used to identify firms that had rights issue in the period under study. Secondary data was collected using a schedule developed by the researcher. Data analysis was done using events study methodology and regression modelling.
Results: Based on the findings the study found that mean share prices before and after the rights issue announcement was statistically insignificant as indicated by the t-test (t= -0.435 and p-value = 0.663).
Unique contribution to theory, practice and policy: Based on the findings the study recommends that further studies to be done on the impact of bonus issues, IPOs, and the global economic crisis (2008-2009) on stock returns of companies listed at the NSE.
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ZENITH INTERNATIONAL JOURNAL OF MULTIDISCIPLINARY RESEARCH http://zenithresearch.org.in/images/stories/pdf/2012/JULY/EIJMMS/4_EIJMMS_VOL2_ISSUE7_JULY2012.pdf
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Copyright (c) 2017 Batista J. Mariko, Theuri J. M
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