| dc.description.abstract | Before 1997 when Kenya, Uganda and Tanzania signed a memorandum of understanding
to establish the East Africa Regulatory Authority whose objective was to establish a
framework for a mutual cooperation in the area of capital market development,
harmonization of securities laws and promotion of information–sharing and cooperation
among members, companies had not cross-listed their shares, but it was until 2001 when
East Africa Breweries Ltd become the first company to cross-list its shares.
The objective of this study was to determine the effect of cross-listing on the values of
firms cross-listed within the East Africa Securities Exchanges; and the findings of the
study shall be of importance to Investors, Policy makers, Academicians and Researchers.
To achieve the objective of the study, Event study methodology was adopted and the
approach outlined in MacKinlay (1997) was followed. Seven firms which had cross-listed
their shares were sampled for this study; and an estimation and event period of 120 days
and 41 days respectively were chosen. Market model equation was used to calculate the
market model parameter using the estimation period data. The findings of the study
showed that cross-border listing increases the value of a firm therefore it is recommended
that the policy makers especially countries within the East Africa Region should focus on
formulating policies that enables the integration of their securities markets. | en |
