Market Factors That Affect Returns For Companies Quoted At The Nairobi Securities Exchange.

Otweyo, Emmanuel S.

dc.creator	Otweyo, Emmanuel S.
dc.date	2015-02-11T16:11:21Z
dc.date	2015-02-11T16:11:21Z
dc.date	2015-02-11
dc.date.accessioned	2017-03-19T20:43:02Z
dc.date.available	2017-03-19T20:43:02Z
dc.identifier	http://ezproxy.kca.ac.ke:8010/xmlui/handle/123456789/131
dc.identifier.uri	http://41.89.49.13:8080/xmlui/handle/123456789/752
dc.description	The School Of Business And Public Management At KCA University.
dc.description	The Nairobi Securities Exchange is the key exchange market for stocks trading in the East and Central Africa region. Having moved from floor trading to the modern electronic Trading system, the NSE was restructured to include particular sectors with regard to economic activities. The aim of this study was to determine how market return and market beta impacts on portfolio returns for the firms quoted on the Nairobi Securities market. The study adopted a three factor model to establish the relationship between the market return, market beta and the interaction between market beta and market return for the period 2009 to 2013. The study adopted panel regression, in order to achieve the purpose of the study. A Hausman test was thus performed and it was concluded that a random effects model was appropriate. This study found that portfolio return and market return were positive (r= 0.565) and significant (pvalue< 0.000) correlated and further the random effects panel regression results indicated a positive (β=3.38) and significantly (p-value<0.05) related to Market return and Portfolio return. Secondly, the study established that portfolio return and market beta were positive (r= 0.417) and significant correlation (p-value<0.000) and this was further indicated by the random effects panel regression results that they had a positive (β=25.93) and significant relationship. Similarly, the study found a negative and significant relationship between the interaction between market beta and market return on the portfolio returns. Finally, the estimated model was found to be significant and that 52.21 percent of the variations in portfolio returns was jointly explained by the variations in the market beta, market return and by the interaction between the market beta and market return. The study thus concluded that the portfolio return is positive and significantly related to market returns. Secondly, the study concluded that the market beta was positive and significantly related and lastly, the interaction between the market beta and market return was positive and significantly related to portfolio returns.
dc.language	en
dc.subject	Stock Return, Market return, Market Risk.
dc.title	Market Factors That Affect Returns For Companies Quoted At The Nairobi Securities Exchange.
dc.type	Thesis