An evaluation of the capital asset pricing model for the Nairobi Stock Exchange: an econometric approach

There have been innumerable empirical studies conducted to test the validity of the Capital Asset Pricing Model (CAPM) since its naissance. However, few have considered the Sub-Saharan African stock markets. This paper examined the validity of the CAPM for the Nairobi Stock Exchange. In this study, instead of identifying more risk factors, a detailed analysis of single risk factor was undertaken. The study used weekly stock returns from 30 companies listed on the Nairobi Stock Exchange from 2003.01.01 to 2007.l2.31.

Governance and economic growth in East African Community Countries

It is evident that good governance encourages investment which enhances growth as well as influencing other development conditions like poverty and inequality reduction. This study sought to explore the relationship between governance and economic growth in East Africa Community (EAC) countries.

The effect of foreign Exchange rates on the performance of the Nairobi Securities Exchange

The changes in foreign exchange rates have diverse effect across the economic spectrum in any country. The sectoral and economy wide effects of foreign exchange rates may ultimately be reflected in the stock prices. The objective of this study was to examine the effect of foreign exchange rates on performance of NSE over the period January 2011 to December 2013.The study used a multiple regression model of NSE 20share index dependent on three variables; foreign exchange rate, inflation and interest rate. The main source of data was NSE and the Central Bank of Kenya statistics.

Regional integration and banking industry in East Africa community

The main objective of this study was to investigate the concept of Regional Integration and Banking Industry in East Africa Community. Banks in Nairobi County that are found in East Africa Community are in a good position to give the information required for our study. The study relied on primary data which was collected using open and close questionnaires developed in line with the objectives of the study and analyzed to draw the conclusion of the study finding both quantitative and qualitative techniques were applied in data analysis.

The impact of inflation on stock market liquidity: the case of Nairobi securities exchange

The relationship between inflation and stock market performance has intrigued researchers who have attempted to explain how a nominal variable such as inflation should determine a real variable (asset prices). Recent research findings have established the existence of a negative relationship between stock market performance and inflation. These findings contradict the hypothesis by Fisher (1930) who argued that stock returns should be positively related with expected inflation, providing a hedge against rising prices.

The impact of oil price changes on inflation in Kenya for the period 1996-2011

This paper analyzed the impact of oil price changes on inflation in Kenya during the period 1996Q1 to 2011Q4, a period characterized by a world economic crunch, increased investment and development activities and a liberalized environment. Oil prices have had an upward trend in the recent past and this has led to the high energy bills which have eaten up of after-tax income of the consumers leading to high cost of living. The paper uses the Johansen Cointegration Analysis and the Vector Error Correction Model to analyze time series quarterly data.

The Relationship between National payment systems and the Economic growth in Kenya

In Kenya today, there has been continuous increase in use of the national payment systems rather than the actual dispensation of cash. All payment systems instruments have resulted to transfer of huge sum of money from one area or person to the other. Efficient payments systems promotes and support regional flows by increasing speed, convenience, reducing cost, lowering payment risks and ensuring a high degree of finality and affects directly the efficiency of the circulation of goods and services and the pace of economic expansion.

The relationship between the real interest rate and the real exchange rate in Kenya

The project analyses the relationship between the real interest rate and real exchange rate. The project focuses on the Kenya economy and captures the period 19971 to 2013. This covers the period of both fixed and floating exchange rate regime. The high-frequency data used in the project was deemed noisy, thus the model was re-estimated in a technique that uses time-varying parameters for comparison. Theoretically, it is argued that the interest rate differential will widen as the real exchange rate appreciates, and this triggers capital to flow in.

The relationship between financial sector development and economic growth in Kenya

Kenya’s financial sector development has had a major role in its economic growth and this study provides a selected review of the literature and the relationship between Kenya’s financial sector and its economic growth. Several studies have been done on the effect of the financial sector on economic growth and the general conclusion is that the financial sector plays a central role in economic development and growth of the Country however; there is a limitation of empirical and theoretical work supporting the concept in developing countries especially in Africa.

Household labour organization and utilization patterns on small farms in Western Kenya: Implications for agricultural production

A salient feature of smallholder production in Western Kenya is the use of fami1y 1abour. Wage 1abour is the 1east dominant form of organizing subsistence production. The small fann households have been integrated into the larger market economy. The penetration of capitalist influence into the indigenous economy is reflected by the emergence of labour and land markets and a growing involvement in the migration process, off-farm employment and schooling.


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