5 research outputs found
Turn of The Month Effect: Evidence From The Nairobi Securities Exchange
No full textThis study sought to investigate if Turn of the Month effect exists at the Nairobi Securities Exchange. In carrying out the study, the days of the month were divided into two, the Turn of the Month (TOM) which included the last trading day of the month and the first three trading days of the following month. The other trading days of the month were categorized as Rest of the Month (ROM). The 20 share index was used as the sampling frame and the daily indices were used to compute the daily returns.Secondary data was obtained from the Nairobi Securities Exchange data base. The TOM coefficient was not significant to confirm TOM effect. It is therefore concluded that there is no TOM effect at the Nairobi Securities Exchange. To practice, the study will give vital information to brokerage firms as they will advise their clients on the best time of the month to sell or buy securities. The findings of the study will also be of benefit to policy formulation aimed at improving capital market efficiency.Keywords: Turn of the Month, Rest of the Month, Twenty Share Index, Market Efficiency and Nairobi Securities Exchange
The Effect of Selected Macro-Economic Variables On Bond Market Development In Kenya
Get PDFThis study sought to investigate the effect of selected macro economic variables on bond market development in Kenya. A causal research design was used to find out the effect of macroeconomic variables on bond market development. Secondary data was used to model the macroeconomic factors influencing development of the bond market. Theentire bond market in Kenya was covered. Data was analyzed using descriptive and regression analysis. T-test was used to interpret the significance of the relationship. The study found out that bank size, exports and fiscal policy had no effect on bond market development while exchange rate, interest rate and GDP per capita had a positive effect.However, economic size measured as GDP at purchasing power parity had a negative effect. It can therefore be concluded that exchange rate, interest rate, GDP per capitaand GDP at purchasing power parity do affect bond market development. It is therefore recommended that more focus should be given, on the four main variables identified, by the policy makers in order to spur more growth in the bond market. A further investigation would be necessary in order to establish the effect of other macroeconomic and institutional variables not covered by this study.Keywords: Macro-economic variables, Bond market, Purchasing Power Parity and fiscal Polic
Effect of Debt Knowledge on the Indebtedness of Employees in the Formal Sector in Kenya
No full textAbstract The study sought to establish the relationship between debt knowledge and indebtedness in Kenya. Positivism paradigm was used in this study. The study adopted a cross sectional and correlational descriptive research design. The study targeted about 2.4 million employees in the formal sector. Three stage sampling was done, first, cluster sampling and then, stratified sampling and finally random sampling. The study used primary data collected by use of self-administered questionnaires. A pilot test of the questionnaire was conducted on 40 respondents to check its validity and reliability. 1000 questionnaires were circulated. Of the returned, 581 questionnaires were considered usable. Cronbach's alpha for likert type items was found reliable (over 0.7). Data analysis used IBM SPSS statistics 21 for descriptive and correlation analysis. Further, OLS Multiple regression models were used to examine the relationships between the independent variable and the dependent variable. The findings reveal that debt experience has a significant effect on indebtedness. Results also found that aggregated debt literacy only explain a mere 9.8 % of respondent's indebtedness. The study will help to buttress economic theories of borrowing. Further the government, policy makers, employers and scholars will benefit from the findings of the study. Future research should explore the effect of dimensions like debt attitude and financial socialization on indebtedness. Further, debt literacy for individuals in the informal sector need to be related to their indebtedness while the lenders' perspective need to be sought
The Impact of Credit Risk Management on Financial Performance of Commercial Banks in Kenya
Get PDFThis study analysed the impact of credit risk management on the financial performance of commercial banks and also attempted to establish if there exists any relationship between the credit risk management determinants by use of CAMEL indicators and financial performance of commercial banks in Kenya. A causal research design was undertaken in this study and this was facilitated by the use of secondary data which was obtained from the Central Bank of Kenya publications on banking sector survey. Thestudy used multiple regression analysis in the analysis of data and the findings have been presented in the form of tables and regression equations. The study found out that there is a strong impact between the CAMEL components on the financial performance of commercial banks. The study also established that capital adequacy, asset quality,management efficiency and liquidity had weak relationship with financial performance (ROE) whereas earnings had a strong relationship with financial performance. This study concludes that CAMEL model can be used as a proxy for credit risk management.Key Words: Credit Risk, Management, Financial Performance, Commercial Banks, Keny
