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dc.contributor.authorOmenda, Christopher O
dc.date.accessioned2016-05-13T15:19:26Z
dc.date.available2016-05-13T15:19:26Z
dc.date.issued2012
dc.identifier.urihttp://hdl.handle.net/11295/95586
dc.description.abstractSeveral scholars have undertaken studies to understand the relationship between stock splits and stock liquidity using different liquidity proxies such as trading volume, share price volatility, number of trades per day and number of shares per trade, just but to mention a few. Most of these studies have established that stock splits result in increased stock liquidity. This paper examined the effect of stock split to stock liquidity of firms quoted in the NSE. The liquidity proxy used was the Amivest Liquidity Ratio, which measured the volume traded resulting from a 1% change in stock price. The objective of the study was achieved by studying nine companies that had split their stock between 2005 and 2011. The study made use of share prices and trading volume data for the sample stock for the event window of 60 days consisting of 30 days before and 30 days after the split. A causal study with a trend analytical design was adapted to determine the relationship between the stock split event and any changes in the stock liquidity position. The study found that generally the liquidity of stock was higher in the days before the stock split than in the days after the stock split. It was also found that liquidity tended to be lowest in the days just around the stock split. Generally the aggregate liquidity for the 30 days before the stock split was found to be higher than for the 30 days after the stock split.en_US
dc.language.isoenen_US
dc.publisherUniversity of Nairobien_US
dc.rightsAttribution-NonCommercial-NoDerivs 3.0 United States*
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/us/*
dc.titleEffect of stock splits on stock liquidity of companies quoted at the Nairobi stock exchangeen_US
dc.typeThesisen_US


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Attribution-NonCommercial-NoDerivs 3.0 United States
Except where otherwise noted, this item's license is described as Attribution-NonCommercial-NoDerivs 3.0 United States