Browsing by Author "Muturi, Willy"

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    The causal relationship between inflation, interest rate and stock market volatility in Kenya
    (European Journal of Business, Economics and Accountancy, 2016) Amata, Evans Ombima ; Muturi, Willy; Mbewa, Martin
    This study examined the relationship between interest rate, inflation and stock market volatility in Kenya using both primary and secondary data. A monthly time series data for a period of 14 years from January 2001 to December 2014 was used to study the relationship. Additionally, 385 Questionnaires were distributed to individual investors to understand investor’s perceptions on the relationship. The vector error correction model was used to analyse time series data for the long run causal relationship between inflation, interest rate and stock market volatility, while the granger causality test was used to analyse the short run relationship. Findings revealed that there was a positive and significant long run relationship between inflation rate and stock market volatility (t-statistic= 5.96). Findings also show a positive and significant short run relationship between inflation and stock market volatility (chi-square value of 13.39 and a p-value of 0.0039). The relationship between interest rate and stock market volatility was found to be negative and weakly significant both in the short run (p-value of 0.0683) and long run (t-statistic of -1.90). Results from investor’s perception revealed that 69% of the respondents agreed that a change in inflation rate causes fluctuation in share prices. Additionally, primary data results show that 75% of the respondents agreed that sudden changes in the interest rate have always caused variations in the stock market returns
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    Factors Influencing Strategy Implementation in the Tourism Industry: A Study of Maasai Mara National Park in Kenya
    (European Journal of Business and Management, 2016) Imbali, Tom; Muturi, Willy; Abuga, Mogwambo Vitalis
    Abstract Many organizational failures occur due to inadequate implementation of strategy; that 66% of corporate strategy is never implemented creating strategy-to-performance gap than the gap in the formulation-to-implementation process. The ability to implement a strategy lies on firm’s ability to overcome obstacles through formula-toprocess implementation. The purpose of this study was to o evaluate the factors influencing strategy implementation in the tourism sector in Kenya particularly Maasai Mara national park. The objectives of the study were to examine the influence of change management on strategy implementation, to determine the influence of organizational culture on strategy implementation, to establish the influence of leadership on strategy implementation and to assess the influence of performance contracting on strategy implementation in the tourism industry in Kenya. This study adopted a case study design. The study target population was 132 respondents selected by census sampling technique. A questionnaire was used for data collection. Data collected was analyzed using descriptive and inferential statistics. Descriptive statistics involved working out the percentages and frequencies and preparation of frequency tables. The findings of this study showed that constructs observed during change management activities to establish their influence on strategy implementation in the tourism sector found that organization pre-positioning as construct of change management influenced strategy implementation to a moderate extent, planning of implementation focus and support and consolidation were more influential on strategy implementation; values held by top management; strength of organizational culture relating to the degree of consistency of beliefs, values assumptions and practices in the sector was the most influential to strategy implementation; provision of leadership direction to implement strategies, persuading to seek goal setting for strategy implementation as elements of leadership were more influential on strategy implementation; clear planning and implementation correlation as a determinant for performance contracting was more influential to strategy implementation; finally the results leadership and change management factors were key factors influencing strategy implementation in the tourism sector particularly in national parks in Kenya. The study recommends that management and Kenya tourism board should use leadership and change management approaches to improve on strategy implementation in the sector
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    Relationship Between Macro-economic Variable, Investor Herding Behavior and Stock Market Volatility in Kenya
    (International Journal of Economics, Commerce and Management,, 2016-08-08) Amata, Evans Ombima; Muturi, Willy; Mbewa, Martin
    This study sought to examine the relationship between interest rate, inflation, gross domestic product (GDP), foreign exchange, investor herding behaviour and stock market volatility. Published time series data from January 2001 to December 2014 was obtained from the Central Bank of Kenya, Kenya National Bureau of Statistics, Capital Market Authority and the Nairobi Securities Exchange. Granger causality test was used to determine the short run causality while the Vector Error Correction Model (VECM) was used to test the long run causality between predictor variables and stock market volatility. Result from the regression model show a positive and significant relationship between inflation and stock market volatility both in the short run and long run. The study finds that an increase in inflation by 1% leads to an increase in stock market volatility by approximately 24%. Results also revealed that there is a negative and significant relationship between interest rate and stock market volatility both in the short run and long run. GDP, Foreign exchange and herding behaviour had no significant relationship with stock market volatility in Kenya.