Effect of Monetary Policy on Performance of Stock Prices for Quoted Companies at the Nairobi Securities Exchange

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dc.contributor.authorToo, Jerop
dc.date.accessioned2024-10-11T07:10:05Z
dc.date.available2024-10-11T07:10:05Z
dc.date.issued2014-05
dc.descriptionMASTER OF BUSINESS ADMINISTRATION in Finance
dc.description.abstractThe purpose of this study was to investigate the effect of monetary policy on the performance of stock prices for quoted companies at the quoted companies at the Nairobi Securities Exchange. Using the random effect model, a stepwise random effect regression method was used to regress monetary policy tools against stock prices; this study found that interest rates and exchange rates had a negative effect on the stock prices while treasury bills and money supply had a positive effect. The findings were consistent with that of a research done by Machimbo,(2012) but only differed on the effect of treasury bills on stock prices. These findings give conclusive evidence that monetary policy has a significant effect on performance of stock prices. The difference on effect of treasury bills in this study implies the presence of a mutually exclusive relationship between interest rates and treasury bills hence a positive effect on the stock prices. The findings conclude that the stock market is a good transmitter of monetary policy in Kenya. A major recommendation of the study is that the Central Bank should be careful to check the impact of the policy in one sector of the economy over other sector because monetary policy seemed to favor the banking sector than other sectors thus resulting in biased information being used for future forecast.
dc.description.sponsorshipDaystar University, School of Business and Economics
dc.identifier.citationToo, J. (2014). Effect of Monetary Policy on Performance of Stock Prices for Quoted Companies at the Nairobi Securities Exchange. Daystar University, School of Business and Economics
dc.identifier.urihttps://repository.daystar.ac.ke/handle/123456789/5359
dc.language.isoen
dc.publisherDaystar University, School of Business and Economics
dc.subjectmonetary policy
dc.subjectstock prices
dc.subjectquoted companie
dc.subjectNairobi Securities Exchange
dc.titleEffect of Monetary Policy on Performance of Stock Prices for Quoted Companies at the Nairobi Securities Exchange
dc.typeThesis

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