Browsing by Author "Mukarah, Josphat G."

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    Factors Influencing Investors to Invest in Equities As Opposed to Bonds in the Banking Industry in Kenya A Case Study of Kenya Commercial Bank Employees.
    (KCA University, 2011) Mukarah, Josphat G.
    This Research project investigated the factors influencing the inventors to invest in equities as opposed to Bonds in Banking industry in Kenya. Development of bonds market widens the financing options for firms and enables the government to shift its domestic debt to longer-term securities. However, development of bonds market requires that certain conditions be in place. These include a developed money market, wider participation and protection of investors, reduced information asymmetry and an efficient trading system. This would boost the market microstructure and facilitate development of the market. The level of development of Kenya’s bonds market indicates that the country is very far from developing this market. The length of treasury bonds market is shorter than that of developed bonds markets, the trading system is not harmonized with intermediaries using different pricing models, and the regulatory framework is also weak to accommodate diversification of corporate bonds. Also, growth of corporate bonds is yet to pick momentum, and the debt market is thin, with the type of securities that have negative implications on the competitiveness of the market. There also gaps between the regulatory framework and the objectives of bonds market development. Thus, developing the bonds market requires huge investment in institutional building. Chapter two review the literature on, the conceptual framework and theoretical framework. Empirical reviews, a critique of the literature and research gaps are also covered. Companies issue bonds to finance operations. Most companies can borrow from banks, but view direct borrowing from a bank as more restrictive and expensive than selling debt on the open market through a bond issue, while the last chapter is comprises of research design, population, sampling, data collection, pilot study, data analysis and presentation.