Bond Market Volatility Compared to Stock Market Volatility

2000 ◽  
Vol 27 (1) ◽  
pp. 82-92 ◽  
Author(s):  
Frank K. Reilly ◽  
David J. Wright ◽  
Kam C. Chan
Keyword(s):  
Stock Market ◽  
Bond Market ◽  
Market Volatility ◽  
Stock Market Volatility ◽  
Bond Market Volatility

EFFECT OF STOCK MARKET DEVELOPMENT ON THE GROWTH OF CORPORATE BOND MARKET IN KENYA

2017 ◽  
Vol 2 (2) ◽  
pp. 16
Author(s):  
Dr. David W. Wanyama
Keyword(s):  
Stock Market ◽  
Corporate Bonds ◽  
Bond Market ◽  
Market Volatility ◽  
Corporate Bond ◽  
Market Development ◽  
Stock Market Volatility ◽  
Policy Makers ◽  
Stock Market Development ◽  
Corporate Bond Market

Purpose: The purpose of this study was to analyze how stock market development influences the growth of corporate bond market in Kenya.Methodology: The study used descriptive and causal research designs.  Secondary data was used. The sample of the study consisted of daily and monthly time series covering six years beginning January 2009 to December 2014. Unit root tests using Augmented Dickey-Fuller (ADF) and Phillips-Perron tests were done. The study used Eviews econometric software to facilitate empirical analysis of data.Results: Regression of coefficients results shows that Stock market size and corporate bonds are positively and significant related (r=0.029, p=0.002), stock market liquidity and corporate bonds are positively and significant related (r=8.291, p=0.0008), Stock Market Concentration and corporate bonds are positively and significant related (r=0.014, p=0.017). Regression of coefficients results shows that Stock Market Volatility and corporate bonds are positively and significant related (r=0.000023, p=0.0001).Unique Contribution to Theory, Practice and Policy: This study recommends study recommends for Policy makers to come up with measures to enhance the liquidity of the stock market which will in turn encourage investment in corporate bonds. The study recommends that concerted efforts should be made to improve market concentration in the corporate bonds market so that it can operate optimally. Policy makers should be aware of and monitor the level of stock market volatility that is appropriate for promoting the growth of the corporate bond markets and indeed other financial markets. Policy makers in Kenya should find ways and means of increasing the size of the stock market to reap the aforementioned benefits.

scholarly journals EFFECT OF STOCK MARKET VOLATILITY ON THE GROWTH OF CORPORATE BOND MARKET IN KENYA

2017 ◽  
Vol 2 (2) ◽  
pp. 76
Author(s):  
Dr. David W. Wanyama
Keyword(s):  
Stock Market ◽  
Secondary Data ◽  
Bond Market ◽  
Market Volatility ◽  
Corporate Bond ◽  
Unique Contribution ◽  
Stock Market Volatility ◽  
Policy Makers ◽  
Corporate Bond Market ◽  
Augmented Dickey Fuller

Purpose: The purpose of this study was to analyze how stock market volatility influences the growth of corporate bond market in Kenya.Methodology: The study used descriptive and causal research designs.  Secondary data was used. The sample of the study consisted of daily and monthly time series covering six years beginning January 2009 to December 2014. Unit root tests using Augmented Dickey-Fuller (ADF) and Phillips-Perron tests were done. The study used Eviews econometric software to facilitate empirical analysis of data.Results: Regression of coefficients results shows that stock market volatility and corporate bonds are positively and significant related (r=0.000023, p=0.0001).Unique Contribution to Theory, Practice and Policy: The study recommended that Policy makers should be aware of and monitor the level of stock market volatility that is appropriate for promoting the growth of the corporate bond markets and indeed other financial markets.

Sign in / Sign up

Export Citation Format

Share Document