Faculty of Commerce
Permanent URI for this collectionhttp://172.16.31.117:4000/handle/123456789/40
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Item A survey of the extent of use of capital budgeting techniques in project appraisal by companies listed on the Nairobi Stock exchange(Egerton University, 2012-03) Kimaru, Paul KiprutoItem An analysis of factors influencing customer loyalty in financial institutions: a case of customers of Post Bank Rift Valley Region(Egerton University, 2007-07) Koech, Isaac KipkemoiItem An analysis of factors that affect accounting for the effects of price level changes: a case study of manufacturing and service companies in Nakuru Town(Egerton University, 2006-07) Kamau, John GathiiItem An analysis of labour turnover: cause and effects: a case study of ministry of Labour and Human Resource Development, Kenya(Egerton University, 2007-06) Bii, Leonard K.Item An analysis of the factors that influence investment choice at the Nairobi Stock Exchange: a case study of NSE stock brokers and dealers(Egerton University, 2007-07) Gichana, James DixonItem An empirical evaluation of factors influencing Bank lending rates in Kenya(Egerton University, 2002-10) Kabithi, Wanderi JoelItem An evaluation of factors that affect small holder farmer's credit repayment : a case of group based credit in Nakuru District(Egerton University, 2010-02) Ongaga, Emily MoraaItem An evaluation of factors that determine the price of mortages among financial institutions: a case of commercial banks operations, Kisii Town, Kenya(Egerton University, 2011-09) Bosire, Jared AreriItem An evaluation of post-rights issue effect on the firms' share price and traded volumes(Egerton University, 2006-07) Karanja, Andrew MwangiItem An Evaluation of the Impact of Government instructions on Financial Management in Public Secondary Schools in kenya: a case of Nakuru Municipality(Egerton University, 2007-07) Langat, Geofrey KiprotichItem An evaluation on the effect of deposit interest rate on the performance of commercial banks: case of Nairobi Central Business District(Egerton University, 2010-06) Ndiema, Lynet ChemaswaItem An investigation of the factors affecting service delivery in commercial banks in Kenya(Egerton University, 2006-09) Geita, PeterItem An investigation on the factors influencing consumer preference amongst different cyber cafe services : a case study of cyber cafes, Kisii Town, Kenya(Egerton University, 2006-07) Nyandoro, Cephus KebabeItem Analysis of factors influencing customer loyalty in selected supermarkets in Nairobi Central Business District, Kenya(Egerton University, 2015-04) Muriithi, LilianItem Challenges facing the effective implementation and management of community service orders in Kenya: the case of Nakuru Municipality(Egerton Unviversity, 2006-08) Madahana, Mbayah W.Item Constraints facing the development of local herb based products business in Kenya(Egerton University, 2003-03) Ngethe, John NjengaItem Contribution of trade unions in the promotion of employee satisfaction: the case of the UASU Egerton University Chapter, Kenya(Egerton University, 2012-04) Lagat, Asanath ChepkoechItem Determinants of Capital Flight In The East African Community( 1988-2018)(Egerton University, 2021-11) Otieno, Joshua ShemItem Determinants of Local Currency Government Bond Market Development in Kenya(Egerton University, 2024-09) Odiga, Jan AmondiDriven by funding restrictions to finance budget deficits, developing economies have concentrated efforts to develop local currency bond market. Developed bond markets are associated with stronger macroeconomics fundamentals, stable financial systems with sounder and stronger institutional framework. In Kenya, the bond market is yet to significantly contribute to its main objective of financing budget deficit hence the government decision to introduced policies focused on building its medium-term to long-term debt securities to help finance vision 2030 objectives. Existing studies on the drivers of bond market development have focused on cross country analysis; sub-saharan Africa, East Africa, developing countries ignoring country specific characteristics. Others give divergent views on how factors affect the development of bond markets. This study to extend strand of literature on determinants of local currency bond market collected secondary data on: bond issuance and previously identified drivers. Annual time series data for the period 1998-2020 was analyzed using linear regression model. The independent variables were put into three groups namely: financial system architecture (corporate bond to GDP, banking sector size, stock market development); Macroeconomic (GDP current, GDP growth rate, GDP per capita, bank lending spread, exchange rate variability, inflation rate, fiscal balance) and governance (corruption index, state governance index, rule of law). The empirical results indicated that three factors; fiscal balance (R-squared =0.3649 p-value=0.0037), banking sector size (R-squared=0.1796, p-value =0.0556) and corruption index (R-squared=0.2533, p-value =0.0200) are all positively significant at 5% significance level this is in line with findings by Adelegan and Radzewicz-Bak (2009) found a positive and significant impact of those variables on government bond markets of Sub-Saharan countries. GDP growth rate was negatively significant at 10% level of confidence. The findings indicate: financial system architecture model insignificant (R= 0.43, p-value =0.1234),Macroeconomic model significant (R= 0.6751, p-value=0.033) and governance model insignificant (R= 0.44, p-value >0.05) whereas the combined model was generally significant at 5% level of significance, the overall R-Square statistic (R=0.83, p-value =0.0172) concluding that a multiplicity of factors appear to be relevant to bond market development in Kenya i.e financial sector, macroeconomic factors and governance .The study thus recommends that governments efforts should focused towards implementing policies that promote the development of financial markets, controlling its micro and macro-economic factors and creating strong administrative structure for a robust bond market