dc.contributor.author | Kithua, Agnes w | |
dc.date.accessioned | 2019-01-17T06:27:18Z | |
dc.date.available | 2019-01-17T06:27:18Z | |
dc.date.issued | 2018 | |
dc.identifier.uri | http://hdl.handle.net/11295/104897 | |
dc.description.abstract | Macro economic variables have been cited as a predictor of variations in the stock
market; however, several theoretical and empirical deviations have been informed on the
direction and sign of causality in economies which are advanced financially. Macro
economic determinant sought to be a measure standard for investors predicting a firm’s
performance along with a proper alternative to acquire further information on the stock
market behavior. The study aim was to identify the link between macroeconomic
variables and market returns of NSE listed companies. This study focused on the
arbitrage pricing theory, the capital assets pricing model and modern portfolio theory as
the key theories guiding the study. The research undertook a descriptive research design
and carried out a census of the 64 firms and obtained quarterly secondary data from all
the firms for a 10-yearperiod between 2007 and 2016. The sourced information was
entered into an excel work sheet and then analyzed by the descriptive statistical
techniques, pooled regression and correlation techniques. The study results revealed that
consumer price index had a positive and insignificant relationship with market returns
while gross domestic product obtained an insignificant and positive link with the market
returns of listed firms in Kenya. The findings further revealed that market returns and
exchange rate obtained a negative and significant relationship whereas the relationship
between money supply was significant and positive. Lastly, the outcomes established that
the link between interest rates and market returns of companies listed at the NSE was
negative and significant. The study concluded that market returns of the listed firms are
significantly influenced by money supply,rates of interest and rates of exchange. It was
recommended that the government of Kenya and the central bank should institute
measures to control interest rates and exchange rates fluctuations. | en_US |
dc.language.iso | en | en_US |
dc.publisher | university of nairobi | en_US |
dc.rights | Attribution-NonCommercial-NoDerivs 3.0 United States | * |
dc.rights.uri | http://creativecommons.org/licenses/by-nc-nd/3.0/us/ | * |
dc.subject | Macroeconomic Variables and Market Returns | en_US |
dc.title | Relationship Between Macroeconomic Variables and Market Returns of Firms Listed at the Nairobi Securities Exchange | en_US |
dc.type | Thesis | en_US |