The Effect of the Introduction of the Growth Enterprise Market Segment on the Stock Market Performance at Nairobi Securities Exchange

Abstract

GEMS set the passage obstructions much lower than Main Investments Markets Segments (MIMS) and Alternatives Investments Market Segments (AIMS). The fragment was required to profit SMEs through an expanded profile and liquidity inside an administrative situation composed particularly to address their issues. The section would empower firms raise long haul capital in this way growing existing tasks in the meantime get back for the new activities. However, there is no information on the influence the segment has on the stock market operations. This study sought to investigate the effect of the introduction of GEMs on stock market performance at NSE. This was done by studying the effect of the segment on the stock value and returns as well as the number of firms under GEM segment. To achieve the objective of the study, the study used event study approach and collected secondary data on the performance of the firms listed in NSE before and after the introduction of the GEM segment. To accomplish the goal of the study, the study utilized occasion think about approach and gathered optional information on the execution of the organizations recorded in NSE prior and then afterward the presentation of the GEM fragment. The study utilized occasion think about procedure to set up the distinctions prior and then afterward and the impact of the GEM portion on money markets esteem. The study found that GEM fragment positively affected the profits of the stock. The beta or the flexibility of the section on the NSE 20 record firms was certain demonstrating any incremental changes on the portion impacted the NSE returns emphatically.