dc.contributor.author | Kamau, Caroline N | |
dc.date.accessioned | 2023-04-19T09:11:19Z | |
dc.date.available | 2023-04-19T09:11:19Z | |
dc.date.issued | 2022 | |
dc.identifier.uri | http://erepository.uonbi.ac.ke/handle/11295/163581 | |
dc.description.abstract | Stock market performance has become an essential part of any country’s economy and a strong
indicator of general economic performance. The stock market growth is directly related to the
economy which consists of various fundamental macroeconomic variables. The Kenyan stock
market has been performing poorly in the recent years with the macroeconomic environment being
very volatile. This study wanted to examine effect of macro-economic variables on stock market
performance in Kenya. Descriptive research design was applied in this study. Quarterly secondary
data was collected for 15 years (2006-2020). Data for Money Supply (M3) was obtained from the
Central Banks, gross domestic product (GDP) from International Momentary Fund (IMF) and
inflation from Kenya National Bureau of Statistics website. Data analysis was done using
correlation and multiple linear regression with model significance done via F-statistics. From the
descriptive statistics, the stock market performance as measured by NSE 20 share index averaged
at 3792.8; GDP at 5.014%; quarterly interest rates at 14.67%; inflation at 7.4050%; and money
supply at 2135.6. From the regression, GDP had an inconsequential effect; interest rate had a
substantial favourable effect; inflation had an inverse effect; while money supply had an inverse
effect on stock market performance. The study concludes that GDP had an inconsequential effect
stock market performance in Kenya. The study also concludes that interest rate has a favourable
effect stock market performance in Kenya. However, it concludes that inflation and money supply
have an inverse effect on stock market performance in Kenya. The study recommends that the
Kenyan government come up with monetary policies that would reduce the levels of inflation and
money supply within the country. The study also recommends that the government comes up with
policies that would increase the interest rates for improved stock market performance. | en_US |
dc.language.iso | en | en_US |
dc.publisher | University of Nairobi | en_US |
dc.rights | Attribution-NonCommercial-NoDerivs 3.0 United States | * |
dc.rights.uri | http://creativecommons.org/licenses/by-nc-nd/3.0/us/ | * |
dc.subject | Effect of Macro-economic Variables | en_US |
dc.title | Effect of Macro-economic Variables on Stock Marketperformance in Kenya | en_US |
dc.type | Thesis | en_US |