RELATIONSHIP BETWEEN INTEREST RATES AND PERFORMANCE OF NAIROBI SECURITIES EXCHANGE MARKET
| dc.contributor.author | Obura, John Mark, | |
| dc.date.accessioned | 2022-02-21T11:36:36Z | |
| dc.date.available | 2022-02-21T11:36:36Z | |
| dc.date.issued | 2021-03-03 | |
| dc.description.abstract | Performance of Nairobi Securities Exchange market has remained unpredictable as observed in February, 2006 when the index rose from 4057 to 5774 in January, 2007 and declined to 2475 in February, 2009. This could have led to past investor losses that led to collapse of some investment firms leaving investors in despair. However, literature links interest rates with securities market performance. Further, stable interest rates attract investors who may be oblivious of risks involved in securities trading. Despite this, interest rates have hitherto not been considered as influencing securities market performance. The purpose of the study was to determine the relationship between interest rates and performance of Nairobi Securities exchange market. The specific objectives were to establish the relationship between lending rates as well as deposit rates and market performance. Correlational design and Secondary data between January, 2006 and December, 2010 was utilized. Results indicated that lending rates was negative but not significant predictor (β1=-0.166, p>0.05) while deposit rates was negative and significant predictor (ß2=-0.678, p<0.05), interest rates explained 65.7% of the variance in market performance (Adj. R2=.657). The study concluded that there exist an inverse relationship between interest rate and market performance. | en_US |
| dc.identifier.issn | 2348 0386 | |
| dc.identifier.uri | http://repository.buc.ac.ke:8080/xmlui/handle/123456789/35 | |
| dc.language.iso | en_US | en_US |
| dc.publisher | International Journal of Economics, Commerce and Management | en_US |
| dc.relation.ispartofseries | Vol .IX;ISSUE 3 | |
| dc.subject | Interest rates, performance, securities market, lending rates, deposit rates | en_US |
| dc.title | RELATIONSHIP BETWEEN INTEREST RATES AND PERFORMANCE OF NAIROBI SECURITIES EXCHANGE MARKET | en_US |
| dc.type | Article | en_US |