Theses and Dissertations
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Item The Relationship Between Lagging Macroeconomic Indicators And Stock Market Return Of Insurance Companies Listed In The Nairobi Securities Exchange.(KCA University, 2015) Kiriba, William M.The Nairobi Stock Exchange is a very important institution in the local capital markets. Public companies are able to raise capital and equally the government is able to borrow through the various treasury instruments. Insurance companies have utilized this stock exchange to borrow capital. Traders invest in the listed firms with the expectation of capital appreciation in the form of price increase and income through dividend returns. Among the many factors that define the expectations of the market players and thus the stock price movements are the lagging macroeconomic factors. The government through its policy and regulatory role has a pivotal role on the macroeconomic indicators; interest rate, inflation rate and exchange rate. In this regard, the study sought to determine the relationship between lagging macroeconomic indicators and stock market return of insurance companies listed in the Nairobi securities exchange. This study adopted a correlational research design to explore the relationship between the lagging macroeconomic indicators and insurance stock market return. Monthly time series secondary data for a five year period 2009 to 2013 for the variables are used. Vector Error Correction Model (VECM) was employed to achieve the three objectives of the study. The study concludes that there exist a relationship between interest rate and the insurance stock market return. However, the macroeconomic variables, inflation rate and exchange rate had no significant effect on the insurance stock market return.Item Effect Of External Debt And Inflation On Economic Growth In Kenya(KCA University, 2013) Osewe, Vincent.The state of economic growth in Kenya has been fluctuating over time as a result of various factors. This study was carried out using external debt and inflation rates as some of the variables which can impact economic growth. The purpose of this research was to investigate the effect of external public debt and inflation in Kenya. It also aimed at identifying other factors that can affect economic growth in Kenya. The specific objectives for the research were to determine the effect of external public debt level on economic growth in Kenya, analyze the effect of inflation on economic growth in Kenya and to establish whether external public debt level and inflation cause economic growth in Kenya. The methodology used during the research included secondary data from International Monetary Fund (IMF), International Financial Statistics (IFS) and Central Bank of Kenya (CBK) data. The study used econometric models in establishing the relationship among the variables. Johansen Cointegration test, Granger causality test and Vector Error Correction model were used using STATA statistical software. The research found that external debt and inflation had no impact on GDP and that there exists a cointegrating relationship among these variables hence they are moving together in long run. The test for granger causality indicated that there was no causal linkage among the variables.