The effect of corporate social responsibility announcement on stock returns at the Nairobi securities exchange
View/ Open
Date
2015-10Author
Mwamburi, Stacey P
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
This study was undertaken with a view of establishing whether Corporate Social
Responsibility announcements affect the stock prices of firms listed at the Nairobi
Securities Exchange. The objective of study was to determine whether the Corporate
Social Responsibility announcements generate abnormal returns of firms listed at the
Nairobi Securities Exchange. These objectives were achieved by studying a sample of
8 firms listed at the NSE having made CSR announcement in the period of the
study. The study adopted a descriptive research design, an event study methodology
was performed where the Market Model was used to determine abnormal returns on a
firm’s stock returns from the year 2011 to 2014, the daily adjusted prices for the
sample stocks were recorded during the event window of 11 days, 5 days
before and after the announcements. Data was extracted from the NSE Daily stock
and NSE Handbook 2011-2014 and analyzed using Microsoft EXCEL. The study
conclude that cumulative abnormal returns are associated with CSR announcement.
CSR thus have a meaningful impact on the stock returns and any abnormal returns are
just a result of chance.
Publisher
University of Nairobi