Effect of stock prices to announcements of Company Of the Year Awards (COYA): a case of companies listed in the Nairobi Stock Exchange
View/ Open
Date
2008Author
Ndirangu, Margaret T
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The main objective of this study is to establish whether or not COY A announcements have
information content.
The study aimed at establishing whether or not COYA announcements have any effect on
share prices for companies listed in the Nairobi stock Exchange (see Appendix 4) and
therefore it is an event study. This design is valuable for detailed analysis. Young, (1960) and
Kothari, (1990) concur that an event study often provides focused and valuable insights to a
phenomena that may be vaguely known and less understood.
The results for this study have also shown that when a listed company participates in the
COY A, the cumulative adjusted abnormal returns are affected depending on whether the
company won or not. Holding other factors constant, the results indicate that a company that
wins an award has positive cumulative adjusted returns as opposed to a company that lost.
However, the study could have been affected by other anomalies such as the Weekend and
Monday effects. In addition, the information shows that the number of companies
participating each year varies. This means that it would be difficult for any meaningful
conclusion to be drawn from this study. That is long-term trend performance on individual
participating cannot be drawn from this study.
Citation
MBASponsorhip
University of NairobiPublisher
University of Nairobi School of Business, College of Humanities and Social Sciences