11207-11231
EFFECT OF MARKET INFRASTRUCTURE FACTORS ON THE DEVELOPMENT OF NAIROBI SECURITIES EXCHANGE
Authors: Lucy Kalekye Musya & Fredrick M. Kalui
Number of views: 452
This study aimed to find out the effect of selected factors on the development of the Nairobi Securities
Exchange. The general objective of this study was to determine the effect of selected factors on the
development of the NSE. The objective was to determine the of market infrastructure factors on the
development of Nairobi securities exchange Both primary and secondary data collection methods
were used. A structured data collection questionnaire was used to collect data on market
infrastructure factors. The population of study was the Nairobi Securities Exchange. Secondary data
was collected on market capitalization from 2006 to 2015 which was used as the indicator of NSE
development. This study used a descriptive research design to describe the empirical data. A
regression model was used for data analysis and hypothesis tested with a 0.05 significance level. The
results confirm that Nairobi securities Exchange development is positively correlated to market
information, market efficiency, market openness, market transparency, transaction processing system
and transaction/operating cost and legal and regulatory framework. .Given the effect of the predictor
variables on NSE development, the government should improve the market infrastructure which is the
center on which financial market revolves. This can be done through initiation of policies that foster
growth and development as countries liberalize their financial systems and further enhance domestic
resource mobilization, public education awareness programmes, elimination of excessive barriers to
the market and putting in place tax regimes and incentives geared towards stimulating companies to
be listed in the stock market. Public education awareness programme. This study is of great
importance to researchers and academics, government policymakers, regulators and investors and
the results should lead to the creation of an enabling environment, development of good regulatory
framework and thus faster development of the securities market