School of Business and Technology
https://repo.umma.ac.ke/handle/123456789/12
2024-03-27T01:34:55ZMacroeconomic variables and stock market performance: a case of Nairobi securities exchange
https://repo.umma.ac.ke/handle/123456789/128
Macroeconomic variables and stock market performance: a case of Nairobi securities exchange
Saad, Zaitun
Nairobi Stock exchange (NSE) is playing a vital role in the growth of Kenya's economy by encouraging savings and investment, as well as helping local and international companies’ access cost-effective capital. NSE operates under the jurisdiction of the Capital Markets Authority of Kenya. Presently, NSE’s market capitalization closed at Sh1.976 trillion compared to the Sh1.986 trillion value in December 2022, representing a 0.49 per cent depreciation. The purpose of this study was to examine the effects of macroeconomic variables on stock market performance a case of Nairobi securities exchange. The study was guided by the following specific objectives; to find out the effect of changes in exchange rates on stock market performance at the NSE; to examine the effect of inflation rates on stock market performance at the NSE; to establish the effect of economic growth rate on stock market performance at the NSE; to determine the effect of changes in interest rates on stock market performance at the NSE and to establish the moderating effect of savings on the relationship between the macroeconomic variables and stock market performance. To conduct the study, the researcher adopted a correlational research design and relied on secondary data collected from the annual reports of the Kenya National Bureau of Statistics, Nairobi Securities Exchange, and Central Bank of Kenya for the period 2000-2021. The collected data was analyzed using Pearson correlation analysis and time series multiple regression analysis. E-Views version 9.0 software was utilized for the analysis. The Pearson correlation matrix was used to assess the strength of the relationship between stock market performance and macroeconomic variables. Additionally, a time series data model (ARDL-ECM) was employed to determine both short-term and long-term effects of macroeconomic variables on the NSE's stock market performance. The study also examined the moderating effect of gross domestic savings through Baron and Kenney stepwise regression. Furthermore, classical linear regression and ARDL bound tests were performed to establish the existence of a long-term co-integration relationship between macroeconomic variables and stock market performance. The study results finding show that the R-squared value of 0.948827 suggests that the independent variables explain about 94.9% of the variation in market capitalization, which is a strong fit. The adjusted R-squared value of 0.861103 is lower than the R-squared value, suggesting that some of the independent variables may not be adding significant explanatory power to the model. The findings of the study indicate that interest rates, inflation rates, and economic growth rate have significant effects on stock market performance, as represented by market capitalization, in the long run. However, no statistically significant impact was found for exchange rates. On the moderating variable Gross domestic savings was found not to be a significant predictor of stock market performance on the NSE in Kenya. These findings highlight the crucial role played by macroeconomic factors in shaping the NSE's stock market performance. In conclusion, the study suggests that interest rates, inflation rates, and economic growth rate are important determinants of stock market performance at the NSE. Policymakers are advised to consider the interplay between macroeconomic variables and stock market performance, and implement appropriate policies and measures to manage exchange rates, inflation rates, economic growth, and interest rates. This will create a stable and supportive environment for the NSE and foster sustainable stock market growth. The study also suggests that future research could explore the effects of other macroeconomic variables on stock market performance.
2023-01-01T00:00:00ZEffects of mobile banking on financial performance of small and medium-sized enterprises in Kajiado County, Kenya
https://repo.umma.ac.ke/handle/123456789/127
Effects of mobile banking on financial performance of small and medium-sized enterprises in Kajiado County, Kenya
Okello, Valentine Juma
Despite the widespread availability and adoption of mobile banking technology, research on its specific impact on the financial performance of Small and Medium Enterprises (SMEs) is lacking. The effective utilization of mobile banking by SMEs to enhance financial performance and the factors influencing its effectiveness remain unclear. This study aimed to examine the relationship between mobile banking adoption and the financial performance of SMEs. Objectives included determining the effects of mobile banking service costs and accessibility on financial performance, as well as assessing the extent of mobile banking adoption among SMEs in Kajiado County. A descriptive research design targeted a population of fifty-eight (58) licensed SMEs in Kajiado County. Primary data from questionnaires and interviews were coded for analysis. Normality tests confirmed a normal distribution of the data. Statistical analyses, including regression analysis and ANOVA, were conducted. The findings indicated a strong negative correlation (-0.974, p = 0.000) between mobile banking service costs and SME financial performance, demonstrating a significant relationship. The rejection of three hypotheses (r=0.351, p<0.05), (r=0.321, p<0.05), and (r=0.246, p<0.05) suggested a positive association between mobile banking service adoption and improved financial performance, including revenue growth and profitability. Specifically, mobile banking service costs had a positive and significant association with financial performance (r=0.665, p<0.05), while mobile banking service accessibility showed a positive and significant correlation (r=0.751, p<0.05). The study recommends collaboration between financial institutions and mobile network operators to reduce service costs and expand coverage, thereby encouraging greater adoption by SMEs in Kajiado County and enhancing their financial performance.
2023-06-01T00:00:00ZDETERMINANTS OF CUSTOMER LOYALTY IN ISLAMIC BANKING: A CASE STUDY OF GULF AFRICAN BANK.
https://repo.umma.ac.ke/handle/123456789/91
DETERMINANTS OF CUSTOMER LOYALTY IN ISLAMIC BANKING: A CASE STUDY OF GULF AFRICAN BANK.
MOHAMED, HAMIDA
The main cause of this study was to establish factors that determined customer loyalty rates at Gulf African Bank. To achieve this, the study sought to analyze the effect of service quality levels on customer loyalty, to investigate the effect of service or product delivery channels on customer loyalty and finally examined the effect of service cost on customer loyalty rates at Gulf African Bank. The study adopted a descriptive research design using a quantitative methodology using Gulf African Bank as the case of the study. The population of the study was drawn from Gulf African Bank customers with accounts that had been both active in May and June 2017. A Stratified random sampling and Questionnaires was used in ease of data collection and for purposes of explaining contents of the questionnaire to customers. Data was shown using tables and figure. Key findings of this study revealed that most of Gulf African Bank customers perceived customer service quality levels to be good. Consequently, this enhanced the bank’s customer loyalty rates. This study concluded that there exists a positive relationship between the levels of customer service as well as customer loyalty rates. The higher the customer service quality levels the higher the loyalty rate for Gulf African Bank customers. The study concluded that use of technology in delivery of banking products and services enhances customer loyalty rates. While technology use in service delivery is key, the use of branches remains vital for customer service delivery. This study recommended that Gulf African Bank should continually improve its customer service levels. In addition, the study recommended that Gulf African Bank continually invests in modern, new and innovative platforms to deliver banking products and services; multichannel delivery of services and products to enhance customer loyalty rates .
2021-05-01T00:00:00ZFACTORS INFLUENCING CUSTOMER CHOICE OF ISLAMIC BANKS IN KENYA
https://repo.umma.ac.ke/handle/123456789/90
FACTORS INFLUENCING CUSTOMER CHOICE OF ISLAMIC BANKS IN KENYA
ALI, FATMA
The purpose of this study was to investigate factors influencing customer choice of Islamic banks in Kenya. The specific objectives were to evaluate the effects of quality of service, competition, information technology and managerial skills on customer choice of Islamic banks in Kenya
The research is of significance to The Bank, Government of Kenya and other researchers. Descriptive research design was used whereby the researcher used primary and secondary data in the study as the primary data was collected through issuance of questionnaires. The questionnaire comprised both open and closed ended, which were distributed in top management, middle management and operational staff of the bank. Stratified random sampling techniques was conducted to obtain the sample size of the respondents. The target population for the study was 86 bank officials with a sample of 45 staffs. The findings were then analyzed quantitatively and presentation of data was by use of tables and figures.
The findings of the study with 96% indicated that competition affects customer choice of Islamic banks in Kenya while 4% disagreed with the opinion. Respondent with 56% indicated that information technology do affect customer choice of Islamic banks in Kenya where us 44% disagreed with the idea. Respondents of 92% indicated that managerial skills affects customer choice of Islamic banks in Kenya while 8% denied. Respondents of 80% indicated that quality of service affects customer choice of Islamic banks in Kenya.
The study recommends that competition should be encouraged through motivation amongst the bank’s staff to boost the quality of the service offered. Technological facilities and systems should be upgraded to solve complex scenes like queuing, quality service should be maintained at the highest level possible via putting more efforts like working overtime and managerial skills should be reviewed occasionally.
2021-06-01T00:00:00Z