Price Impacts of Commercial Paper Issue Announcement: a Case of Quoted Companies Which Have Issued Commercial Papers in Kenya
Abstract
The focus of this study was to determine the price impact of commercial paper issue
announcement on stock prices in NSE. This was achieved by examining whether the average
abnormal returns surrounding the commercial paper issue announcement was statistically
different from zero.
The research designed to achieve this is presented in chapter three where market model was used
to derive the expected returns and a t-test statistic used to test the hypothesis.
Data anlysed for eleven (11) companies showed significant price adjustment for companies,
which issued the commercial papers. The results concluded that NSE is in the Semi-strong form
of efficiency and commercial paper issue is good news to investors.
It's hoped that this study will be a valuable addition to the scanty body of knowledge concerning
market efficiency in NSE and will serve as a basis for future research.
Citation
MBAPublisher
University of Nairobi School of Business, University of Nairobi
Description
Master of Business Administration