dc.contributor.author | Gakuru, Wilfred K | |
dc.date.accessioned | 2013-05-12T11:09:54Z | |
dc.date.available | 2013-05-12T11:09:54Z | |
dc.date.issued | 2004-08 | |
dc.identifier.citation | Masters Of Business Administration (MBA) Degree, University of Nairobi | en |
dc.identifier.uri | http://erepository.uonbi.ac.ke:8080/xmlui/handle/123456789/22454 | |
dc.description | A finance research project submitted in partial fulfillment of requirement
for Degree in Masters Degree in Business Administration (MBA).
Faculty of Commerce University of Nairobi | en |
dc.description.abstract | Capital markets represent a fundamental element of the financial system of any modem economy and
they play an important role in the allocation of capital within the economy. Therefore public authorities
responsible for economic policy as well as private sector agents who are active in the capital markets
have a vested interest in capital markets that are both efficient and stable.
The availability of financial capital is a prerequisite for development and transformation of any nations
economy hence many African countries have invested in developing capital markets as institutions for
mobilizing external capital inflow and domestic savings. The development of domestic capital markets
provides an opportunity for greater funds mobilization, improved resource reallocation and provision of
relevant information for investment appraisal (Black et al 1988).
The Kenya stock market just like many developing countries is an important avenue for resource
mobilization in terms of savings mobilization and resource allocation. How well the stock market plays
its role of saving mobilization and efficient resource allocation will depend on how well the investors
perceive the performance of the economy as indicated by the index.
The study looks at the relationship between stocks returns and bond returns for the period 1999 to 2003.
It also utilizes the method of correlation coefficient to determine the relationship between the
movement between the stock and bond returns. Bond returns are categorized as corporate, government
fixed, and government floating. A comparison is also established between average of government
bonds and average of all bonds.
The relationship between stock returns and individual bond returns is found to be insignificant within
the year however over the years there is a very strong negative relationship, which means that in the
short run there is no significant relationship however in the long run the relationship is negative and
very strong as measured by the coefficient of determination. The study shows that bond returns explain
stock returns in the long run. | en |
dc.language.iso | en | en |
dc.publisher | University of Nairobi | en |
dc.title | The relationship between stock returns and bond returns in the Nairobi Stock Exchange | en |
dc.type | Thesis | en |
local.publisher | School of Business | en |