Effect of stock prices to announcements of Company Of the Year Awards (COYA): a case of companies listed in the Nairobi Stock Exchange

Abstract

The main objective of this study is to establish whether or not COY A announcements have information content. The study aimed at establishing whether or not COYA announcements have any effect on share prices for companies listed in the Nairobi stock Exchange (see Appendix 4) and therefore it is an event study. This design is valuable for detailed analysis. Young, (1960) and Kothari, (1990) concur that an event study often provides focused and valuable insights to a phenomena that may be vaguely known and less understood. The results for this study have also shown that when a listed company participates in the COY A, the cumulative adjusted abnormal returns are affected depending on whether the company won or not. Holding other factors constant, the results indicate that a company that wins an award has positive cumulative adjusted returns as opposed to a company that lost. However, the study could have been affected by other anomalies such as the Weekend and Monday effects. In addition, the information shows that the number of companies participating each year varies. This means that it would be difficult for any meaningful conclusion to be drawn from this study. That is long-term trend performance on individual participating cannot be drawn from this study.