Stock splits drive share prices up, benefiting investors and companies alike.
Stock splits in companies listed on the Nairobi Stock Exchange are done to make share prices more accessible to investors. The study found that companies split their stocks to reach an optimal trading range, allowing more investors to buy shares. The ratio of the split, like 10 for 1, can also affect share prices. While in theory, stock splits don't benefit shareholders, in practice, companies may have other reasons for doing them.