illiquidity predicts high future illiquidity, which raises the required return and lowers contemporaneous prices, which are consistent with the findings of this. CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS Introduction This chapter gives the Summary, Conclusion and Recommendations based on the research findings as carried out: Section 5.2 Presents Summary of findings; Section 5.3 Presents Conclusion of this Study; Section 5.4 Presents Recommendations; Section 5.5 Looks at Limitation of Study; and finally Section 5.6 Presents Suggestion for Further Research. Summary of Findings This study was done with the objective of determining the relationship between illiquidity and stock returns of companies listed at the Nairobi Securities Exchange.The Illiquid test carried out using the two proxies to illiquidity showed significantly high Illiquidity for portfolios that had stocks whose characteristics had either fewer deals at the exchange, lowest volume, or lowest turnover respectively. Portfolio of stocks which had high trade deals, high volume and highest turnover had low illiquidity, (illiquidity tables 4.2 and 4.3.). Stocks that had a mix of characteristics from high deals, to high volume to high
illiquidity predicts high future illiquidity, which raises the required return and lowers contemporaneous prices, which are consistent with the findings of this. CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS Introduction This chapter gives the Summary, Conclusion and Recommendations based on the research findings as carried out: Section 5.2 Presents Summary of findings; Section 5.3 Presents Conclusion of this Study; Section 5.4 Presents Recommendations; Section 5.5 Looks at Limitation of Study; and finally Section 5.6 Presents Suggestion for Further Research. Summary of Findings This study was done with the objective of determining the relationship between illiquidity and stock returns of companies listed at the Nairobi Securities Exchange.The Illiquid test carried out using the two proxies to illiquidity showed significantly high Illiquidity for portfolios that had stocks whose characteristics had either fewer deals at the exchange, lowest volume, or lowest turnover respectively. Portfolio of stocks which had high trade deals, high volume and highest turnover had low illiquidity, (illiquidity tables 4.2 and 4.3.). Stocks that had a mix of characteristics from high deals, to high volume to high
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