An Empirical Study of the Impact of Treasury Bills Rate Volatility on Corporate Investments: the Case of Commercial Banks in Kenya
Abstract
This project is aimed at documenting the impact of the treasury bills rate volatility on
corporate investments where commercial banks have been taken as a case study. The
main objective of this study was to highlight the effects of 91-days treasury bills rate
movements on commercial banks investments. In order to bridge the existing
knowledge gap, a simple regression model was employed on the data and the results
points out that there is a significant negative relationship between treasury bills rate
and other investments. While the relationship between T-bills rate and T-bills was
found to be significantly positive.
It is now the duty of the government authorities to reduce T-bills rate so as to
stimulate investment in other portfolios. Unless the domestic debt is retired to
manageable and reasonable levels, investment of resources in other ventures is not
forthcoming, which is detrimental to economic progress of the nation
Citation
Masters of business administrationPublisher
University of Nairobi Faculty of Commerce, University of Nairobi.