Impact of March Handshake on the Capital Market in Kenya
Journal Title: IOSR journal of Business and Management - Year 2019, Vol 21, Issue 1
Abstract
This paper investigates the impact of March 2018 handshake between President Uhuru Kenyatta and the leader of National Super Alliance (NASA) Mr.RailaOmolloOdinga. A handshake is a cultural gesture that communicates friendship and agreement. When political leaders shake hands, the act has announcement effect on their followers. A handshake is news potent and the public interpret the news applying the herodinistic heuristics to anticipate gains or pleasure. Such behavior apply for all social, political, economicactivities, including capital markets. To determine whether March 2018 handshake had an effect on the Kenyan capital market, event study methodology was applied. Nairobi Securities Exchange (NSE 20) Indices were obtained from Nairobi Securities Exchange Website. Indices were collected 30 days before the handshake and 30 days after the handshake. Thus, 9 March 2018 was the event window. Theaverage indices were computed and Levene's Test for Equality of Variances applied and assessed at 0.05 level of significance. The results showed P-values =0.00< 0.05 level of significance. Therefore, March 2018 handshake was statistically significant in influencing the capital markets in Kenya. The paper concludes that a handshake is an important gesture that influence the capital markets.
Authors and Affiliations
Francis Mambo Gatumo
Keywords
Related Articles
- EP ID EP441375
- DOI 10.9790/487X-2101026264.
- Views 77
- Downloads 0
A Calculation The Grey Forecasting Method of Maize Productivity In Indonesia
The accuracy of forecasting is a crucial issue for decision-makers regarding planning. During the recent years, several techniques have used for forecasting in order to accurately predict the future demand. Although ther...
Uncertainty Variables on Cost Estimation in Project Construction
Cost and time are the main factors management aspects of a construction project. In implementing the project, the contractor is always trying to minimize the costs incurred in order to obtain maximum benefit. To achieve...
The Optimization Role of Corporate Social Responsibility (CSR) In a Nickel Mining Company Improving the Welfare of the Communities in North Konawe
The potential natural content of nickel ore in Konawe come across an abundance of the northern Konawe made it regarded much by dividing the valley by a company to invest in the mining sector.The have significant potentia...
The Effect of eWOM on Intention to Visit and The Mediating Role of Destination Image
This study aims to examine the causal relationship between eWOM, destination image, and the intention to visit a tourist destination. The structural model consisting of these three variables was analyzed using WarpPLS 6....
Influence of Training on Knowledge Management in Selected Commercial Banks in Eldoret Town, Kenya
Knowledge is a critical asset in any organization. A proper management of knowledge can increase organizational performance, improve quality of service, and sustain competitive advantage. To utilize knowledge for organiz...