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Effect of Macro-Economic Factors on the Stock Market Performance of NSE 20 Constituent Companies in Kenya

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dc.contributor.author Lakhani, Shyam Ashok
dc.date.accessioned 2019-07-22T09:43:17Z
dc.date.available 2019-07-22T09:43:17Z
dc.date.issued 2019
dc.identifier.uri http://erepo.usiu.ac.ke/11732/4632
dc.description A Research Report Submitted to the Chandaria School of Business in Partial Fulfilment of the Requirement for theDegree of Masters in Business Administration (MBA) en_US
dc.description.abstract The general objective of this study was to determine effect of macro-economic factors on the stock market performance of NSE 20 constituent companies. The study was guided by the following specific objectives; to assess the effect of the political event on the stock market performance, to determine the effect of technology adoption on the stock market performance and to investigate the effect of foreign direct investment on the stock market performance of NSE 20 constituent companies. Descriptive research was used and the target population consisted of NSE 20 constituent companies. Secondary data was used to collectdata on stock market, foreign direct investment and technology adoption. Data was collected from the Kenya National Bureau of Statistics, the National Treasury and the Central Bank of Kenya for the period of 19 years period between 2000 and 2018. The first objective assesses the effect of political event on the stock market performance. The findings revealed that there was a significant difference between the mean of the stock prices before, during and after the election period. A Pearson correlation that was done indicated that there was a positive but insignificant correlation between NSE performance and election. The second objective set to determine the effect of technology adoption on the stock market performance. The study established that NSE share constituent companiesafter technology adoption was higher than in the pre technology period, thus indicating that technology adoption had a significant influence on stock market performance. The third objective set to investigate the effect of foreign direct investment on the stock market performance on NSE 20 constituent companies. Pearson correlation that done indicated that there was a positive but insignificant correlation between NSE performance and foreign direct investments. This implied that rate of foreign direct investment did have an impact on stock market performance. The study concluded that there was a varied set of returns were observed before and after the election dates. Post technology period experienced a higher mean than the pre technology period, thus financial institutions should strive to also integrate ICT in their operations for improved overall financial results. The study established that FDI inflows have an effect on stock market performance though not to a significant extent thus concludes that FDI inflows are not one of the significant determinants of stock market performance. The study recommends that investors should take precautions when purchasing shares especially in a period of political uncertainty and technology helps financial institutions in collecting and managing information for competiveness through generation of a wide range of products ideas. An increase in FDI is likely to influence other sectors of the economy positively and therefore recommends that policy makers should come up with measures that will attract more foreign direct investments in the future. en_US
dc.language.iso en en_US
dc.publisher United States International University - Africa en_US
dc.subject Macro-Economic en_US
dc.subject Stock Market Performance en_US
dc.subject NSE 20 Constituent Companies en_US
dc.subject Kenya en_US
dc.title Effect of Macro-Economic Factors on the Stock Market Performance of NSE 20 Constituent Companies in Kenya en_US
dc.type Thesis en_US


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