dc.description.abstract | The globalization of financial markets has resulted in an increasing number of firms
choosing to cross list their stock on exchanges outside their domestic market.
Academic discourse continue to investigate whether cross listing events have any
effects on various managerial aspects of the firm inclusing investment returns, firm
value and firm performance. In east Africa Community, the firms can cross list in four
organized exchanges namely the NSE, DSE, USE and RSE. This study sought to
determine the effect of cross border listing announcements on stock price
performance at the Nairobi Securities Exchange. The event study methodology was
applied on sixteen cross listing events with a 60 day event window. 30 days pre
announcement and 30 days post announcement. The study finds that the abnormal and
cumulative abnormal returns off the cross listed firms behave differently over the
event window. Of the sixteen events, in only one event does the abnormal and
cumulative abnormal returns have a significant p value suggesting that the event
affects the returns. This is 6.25% of the overall events as identified in non parametric
tests. Of the other fifteen events representing 93.75% of the events, there is no
significance. The study recommends that EAC countries should harmonize cross
listing policies, further integtration initiatives to avoid arbitrage gains. Further studies
are suggested on the same area using a sectoral approach and applying robust
techniques. | en_US |