Impact of Privatization on Companies’ Liquidity: A Case of Companies Listed At Nairobi Securities Exchange

Abstract

The aim of this study was to analyse the liquidity of companies privatized and quoted in the Nairobi Security Exchange.  The research focused on those companies, which were recently privatized and were quoted at the Nairobi Security Exchange.  Secondary data was collected and analysed from both published and unpublished reports.   Published data mainly came from the financial reports of these companies, journals and prospectus.  Unpublished data was obtained from research papers.Two  ratios were computed for the companies five years before privatization and five years after privatization and the student’s t- distribution was used to determine whether there were significant differences in liquidity before and after privatization.The general conclusion from the study shows that there were no significant changes in the liquidity of companies before and after privatization.