Domestic Savings in Unit Trusts and the Growth of Capital Market in Kenya

Unit trust funds have contributed to the growth of capital market in Kenya and indeed globally. However there is need to determine the specific contribution of unit trust in the growth of capital market; more so, the particular attribute of unit trust that attract the investment. Theoretically it is expected that as unit trust funds grow, capital markets equally grows but empirically there is some substantial growth in capital market though not in equal measure in unit trusts. The study therefore sought to determine the contribution of domestic savings in unit trusts on the growth of capital market. This was undertaken using explanatory non-experimental research design and analysis were carried out using panel data.  A census involving all twenty three (23) unit trust schemes for the period 2009 to 2017 was carried out utilizing secondary data. The variables were analyzed using panel data to determine the relationships of the variables by use of fixed effect model. The study revealed a positive effect of domestic savings to the growth of capital market in Kenya. The findings were presented using a linear type of regression model. The study therefore recommend that greater emphasis be placed on domestic saving in order to benefit from its contribution to the growth of capital market and consequently supporting the economic pillar in Kenya vision 2030. Keywords: capital market, domestic savings, growth and unit trusts. DOI: 10.7176/EJBM/11-16-04 Publication date:June 30th 201

Capital Allocation in Unit Trust and the Growth of Capital Market in Kenya

Unit trust schemes approach capital allocation in different ways depending on where they are in the growth life cycle and their strategic focus on customer growth. An effective capital allocation strategy consistently creates value to investors’ funds and sustainable growth in the capital market. Therefore this makes capital allocation an important issue to investigate particularly in unit trusts in relation to the continuous shifting of business objectives within the capital market. This study is a useful point of reference for investors, fund managers and government agencies. This study therefore sought to establish the position of capital allocation in unit trust on the growth of capital market in Kenya. The study used explanatory non-experimental research design with the analysis being carried out using a panel data.  The entire population involving all the twenty three (23) trust schemes to include all money market, equity and balanced funds managed by the schemes for the period between 2009 to year 2017. The research utilized secondary data because of the small number of unit trusts companies in the NSE and availability of the required data. Secondary data collection sheet was designed and used to collect and record all information necessary on unit trust funds from schemes annual reports, surveys and CMA publications for the period under review. Data were also analyzed using both descriptive statistic and panel multiple regression analysis by means of SPSS Version 21. Both dependent and independent variables were analyzed using panel data to determine the strength and relationships of the variables. The study revealed that Capital allocation contributed positively to the growth of capital market in Kenya. These findings were presented in the forms of a regression model. The study findings is used as a basis to recommend that the unit trust fund managers should actively evaluate the choices when allocating funds since it positively contribute to the growth of capital market. This would contribute to the realization of economic pillars in Kenya vision 2030. Keywords: capital allocation, capital market, growth and unit trusts DOI: 10.7176/RJFA/10-12-01 Publication date:June 30th 201

Trading Volume and Fama-French Three Factor Model on Excess Return. Empirical Evidence from Nairobi Security Exchange

The main objective of this paper is to examine the effect of Trading Volume on excess return using the Fama-French three factor model of listed companies in Kenya. The research study employed a Quantitative research design to analyses the effect of Trading Volume on excess returns in Nairobi Security Exchange (NSE) during the period 2006 to 2015. Secondary data was used for this study. The study utilized descriptive statistics, correlation, unit root test, Heteroscedasticity, and Autocorrelation test as diagnostic tests. The regression results revealed that Market premium and Value premium (HML) and Trading Volume have a high explanatory power while the size premium (SMB) has a low explanatory power

Factors Affecting Internal Auditor’s Performance in Public Universities in Kenya

The study focused on the factors affecting internal auditors ‘performance in public universities in Kenya. It aimed at achieving the objectives: to determine how the working environment, to assess how the challenges to the independence of internal auditors, to assess the impact of the level of technical competency affects the performance of internal auditors in public universities in Kenya. Thus this study evaluates the effect of working environment,establishes the effect of internal auditor’s independence and the effect of internal auditors competence on the performance of internal auditor in public universities in Kenya. Descriptive research design was applied, with a target population of the chief internal auditors from 31 chartered public universities in Kenya which are registered by the Higher Education ministry. A random simple sampling technique was applied o give the sample size of 31. Primary data was used for analysis. The study found out that the internal auditors working environment, internal audit independence and authority, internal auditor’s technical competence impacted on the performance of internal audit function.The study recommended that auditors should consider complying with professional standards as the most important contributorto internal auditing performance. The management in the public universities should keep organizing seminars and workshops where the internal auditors would be trained frequently by experts either internally or externally