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.

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

2017 ◽  
Vol 2 (2) ◽  
pp. 63
Author(s):  
Dr. David W. Wanyama
Keyword(s):  
Stock Market ◽  
Corporate Bonds ◽  
Secondary Data ◽  
Market Concentration ◽  
Bond Market ◽  
Corporate Bond ◽  
Unique Contribution ◽  
Policy Makers ◽  
Corporate Bond Market ◽  
Augmented Dickey Fuller

Purpose: The purpose of this study was to analyze how stock market concentration 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 concentration and corporate bonds are positively and significant related (r=0.014, p=0.017).Unique Contribution to Theory, Practice and Policy: The study recommends that concerted efforts should be made to improve market concentration in the corporate bonds market so that it can operate optimally. The existing concentration affected the stock and corporate bond markets positively. However, policy makers should be careful not to allow a higher stock market concentration as this will adversely affect the financial markets (El-Wassal, 2013).

scholarly journals Evaluation of Corporate Bond Market Performance in Bangladesh

IIUC Studies ◽  
2016 ◽  
pp. 127-144
Author(s):  
Abu Hanifa Md Noman Bin Alam ◽  
Serajul Islam ◽  
Nazneen Jahan Chy
Keyword(s):  
Stock Market ◽  
Corporate Bonds ◽  
Vital Role ◽  
Bond Market ◽  
Corporate Bond ◽  
Convertible Bond ◽  
Primary Data ◽  
Alternative Source ◽  
Corporate Bond Market ◽  
Secondary Information

Bond market plays a vital role in economic development of a country. Bond market provides long term finance to issuers by creating alternative source of finance through stock market, besides providing stable source of income to investors against volatile stock market. However, Bangladesh corporate Bond market is at very initial stage. Hence, it is needed to make an analysis of investors’ attitude towards corporate bonds in Bangladesh for determining investors finding on the issue. The study is limited to performance evaluation of three corporate bonds in corporate bond market in Bangladesh and investigate investors attitude towards it. We have collected secondary information from DSE web site and processed through SPSS to make performance analysis and collected primary data from investors of some brokerage houses in Chittagong metro through questionnaire survey for analyzing investors’ attitude towards corporate bond market. The study has found that price stability of ACI zero coupon bond is more than IBBL Perpetual Mudaraba Bond and BRAC subordinated convertible bond and it is also found that only 5% of respondents prefers to invest in corporate bonds due to lack of supply of corporate bond, lack of investors’ awareness, inadequate market regulations etc.IIUC Studies Vol.10 & 11 December 2014: 127-144

INFLUENCE OF STOCK MARKET SIZE ON THE GROWTH OF CORPORATE BOND MARKET IN KENYA

2017 ◽  
Vol 2 (2) ◽  
pp. 1
Author(s):  
Dr. David W. Wanyama
Keyword(s):  
Stock Market ◽  
Secondary Data ◽  
Bond Market ◽  
Corporate Bond ◽  
Market Size ◽  
Policy Makers ◽  
Corporate Bond Market ◽  
Large Size ◽  
Research Designs ◽  
Augmented Dickey Fuller

Purpose: The purpose of this study was to analyze how stock market size 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). The results revealed that stock market capitalization does not granger cause corporate bond market in Kenya.Unique Contribution to Theory, Practice and Policy: This study recommends for Policy makers in Kenya to find ways and means of increasing the size of the stock market to reap the aforementioned benefits. A large size of the stock market will cause the benefits to flow to the corporate bond market too.

INFLUENCE OF STOCK MARKET LIQUIDITY ON THE GROWTH OF CORPORATE BOND MARKET IN KENYA

2017 ◽  
Vol 2 (2) ◽  
pp. 47
Author(s):  
Dr. David W. Wanyama
Keyword(s):  
Stock Market ◽  
Corporate Bonds ◽  
Secondary Data ◽  
Bond Market ◽  
Market Liquidity ◽  
Corporate Bond ◽  
Unique Contribution ◽  
Corporate Bond Market ◽  
Stock Market Liquidity ◽  
To Come

Purpose: The purpose of this study was to analyze how stock market liquidity influence 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 liquidity and corporate bonds are positively and significant related (r=8.291, p=0.0008).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.

scholarly journals Corporate Bond Market in Poland—Prospects for Development

2020 ◽  
Vol 13 (12) ◽  
pp. 306
Author(s):  
Jakub Kubiczek
Keyword(s):  
Corporate Bonds ◽  
Bond Market ◽  
Corporate Bond ◽  
Annual Growth ◽  
Market Development ◽  
Supply Side ◽  
Upward Trend ◽  
Corporate Bond Market ◽  
Bond Issuers

The Polish corporate bond market does not have a history as long as the American one, however, it is characterized by stable annual growth. The growth of the market is related to the growth of its liquidity and is determined by a number of entities, both on the demand and the supply side. The aim of the study was to present the structure of the Catalyst market and bond trading in Poland. The study also discusses the market’s development and identifies the factors that determine this development. Based on reports concerning trading on the Catalyst market, a huge growth was noticed in the 10 years since the market’s establishment. Forecasts indicate that the growth will continue. The outbreak of the SARS-CoV-2 pandemic will cause the market development to be slower than the model’s forecast, although the data for the first nine months of 2020 suggest that the upward trend will be maintained. Moreover, for the market to continue to thrive, a rating must be compulsory for corporate bond issuers. A comparison of the ratings of individual issuers enables investors to analyze the risk and profitability of corporate bonds in an easier way.

scholarly journals The Role of Stock Market Development in Influencing the Firms Performance: A Study Based on Pakistan Stock Market

2018 ◽  
Vol 10 (12) ◽  
pp. 104
Author(s):  
Sophee Sulong ◽  
Qasim Saleem ◽  
Zeeshan Ahmed
Keyword(s):  
Firm Performance ◽  
Stock Market ◽  
Developing Economies ◽  
Market Liquidity ◽  
Market Volatility ◽  
Market Development ◽  
Stock Market Volatility ◽  
Stock Market Development ◽  
Stock Market Liquidity

The study aims to examine the role of stock market development in influencing the performance of non financial firms listed on Pakistan Stock Exchange from 2001 to 2017. Stock market development is a foremost issue of debate nowadays in emerging and developing economies. The theories and empirical studies strongly refer that stock market development is a tool to mobilize the savings and investment to promote the industrialization and firms performance. This study is an effort to establish the empirical relationship between stock market development and firm’s performance. Three indicators of stock market development like stock market volatility,stock market liquidity and stock market liquidity are used for assessing the book and market performance of firms. For this purpose two-step system Generalized Method of Moments (GMM) estimator was employed in a dynamic panel model for empirical testing of hypothesis. The findings indicates that stock market volatility is a significant factor which which attempts to decrease the firm performance. On the other hand, stock market capitalization and stock market liquidity significantly causes the increase in firm firm performance.

Pricing Effectiveness on the Russian Corporate Bond Market

2017 ◽  
Vol 2017 (4) ◽  
pp. 3-28
Author(s):  
Tamara Teplova ◽  
Darya Budanova
Keyword(s):  
Corporate Bonds ◽  
Total Sample ◽  
Bond Market ◽  
Corporate Bond ◽  
Return Periods ◽  
Corporate Bond Market ◽  
Reversal Effect ◽  
Strategy Design ◽  
Selection Of

In this paper, the question of price anomaly’s existence in the ruble bond market is considered. The construction of the profitable investment (trade) strategy on the relatively best and relatively worst corporate bonds that are ranged by the historical return allows to reveal the anomaly. The testing is conducted at the total sample (303 bonds of Russian issuers) and the sub-sample (25 liquid bonds of Russian issuers). The results that include the selection of the trade strategy’s design (the analysis of more than 6 thousand combinations of historical return periods investment periods and the percentiles of the best and worst portfolios) allow to detect the reversal effect (when the profitable strategy includes investing in to former losers who have demonstrated the lowest historical return). The investments in former winners also may be profitable, but the parameters of the strategy design become crucial to reach this effect. The result above justifies the fact that Russian corporate bond market is overestimated, the bond demand is higher that the bond supply that leads to the anomaly in the dynamics of the return, when the investment in losers makes it possible to get profit.

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
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