scholarly journals The Relationship Between Macroeconomic Factors and Mortgage Market Growth in Kenya

2018 ◽  
Vol 14 (10) ◽  
pp. 68
Author(s):  
Natalie Diana Owuor ◽  
Wainaina Githii ◽  
Mirie Mwangi
Keyword(s):  
Interest Rates ◽  
Secondary Data ◽  
Mortgage Market ◽  
Arbitrage Pricing Theory ◽  
Property Market ◽  
Macroeconomic Factors ◽  
Market Growth ◽  
Descriptive Research ◽  
Pricing Theory ◽  
The Relationship

The mortgage market is the market for financing real estate assets. Mortgage financing is vital in financing the property market. This study seeks to determine the relationship between selected macro factors and mortgage market growth in Kenya. The study is based on the arbitrage pricing theory, capital assets pricing theory, title theory and lien theory of mortgages. The study utilizes descriptive research design and quarterly secondary data for a period of 10 years from 2007 to 2016. Analysis of data is carried out through descriptive and inferential statistical techniques. Inferential statistics such as linear correlations and multiple linear regressions are used to draw conclusions and make predictions on the relationship between the independent variables and the dependent variable. The research establishes that there is a positive and significant relationship between interest rates, inflation and the mortgage market growth. The research also finds that there is insignificant relationship between exchange rates, gross domestic product and the mortgage market growth. The research concludes that the mortgage market growth in Kenya is influenced by interest rates and inflation. The research recommends that the central bank of Kenya should ensure that interest rates are stable and inflation levels are low to ensure that they do not affect the mortgage market growth.

scholarly journals Valuation of Government Bonds: the Exchange Rate Is an Important Aspect

2017 ◽  
Vol 65 (6) ◽  
pp. 1911-1916
Author(s):  
Blanka Francová
Keyword(s):  
Regression Model ◽  
Interest Rates ◽  
Arbitrage Pricing Theory ◽  
Arbitrage Pricing ◽  
Data Set ◽  
Government Bonds ◽  
Exchange Risk ◽  
Pricing Theory ◽  
Multi Linear Regression ◽  
The Relationship

Interest rates are currently very low in the countries. In these countries bonds are issued with low or negative yields. In this paper, I empirically investigate the factors that affect the price of bonds. I follow international arbitrage pricing theory to determine the relationship between factors and the price of bonds. The international arbitrage pricing theory applies a multi‑linear regression model. The regression model is used for emerging markets and developing markets separately. I have a unique data set of 46 countries. The main data are the monthly returns on government bonds in the period 2010–2015. Exchange risk influences the bond prices. Currency movements can bring further yield for investors.

scholarly journals Relationship Between Selected Macroeconomic Variables and the Financial Performance of Investment Banks in Kenya

2021 ◽  
Vol 13 (11) ◽  
pp. 102
Author(s):  
Mungiria James Baariu ◽  
Njuguna Peter
Keyword(s):  
Financial Performance ◽  
Interest Rates ◽  
Significant Influence ◽  
Investment Banks ◽  
Arbitrage Pricing Theory ◽  
Macroeconomic Variables ◽  
Pricing Theory ◽  
Equity Investments ◽  
Classical Economic ◽  
The Relationship

Currently, investment banks in Kenya are facing a lot of challenges due to persistence losses. However, the available studies are inadequate to aid investment banks in overcoming these challenges in Kenya due to mixed findings, resulting in rising uncertainty on equity investments’ performance, leading to massive losses among investment banks.  This study, therefore, sought to model the relationship between inflation, GDP, interest rates, exchange rates, and financial performance of investment banks. Arbitrage pricing theory, Modern portfolio theory as well as classical economic theory (flow-oriented model) was used. A causal research design was adopted. The study found that inflation has negative significant influence on financial performance of equity investments among investment banks in Kenya. Also, GDP has positive and significant influence on financial performance of equity investments among investment banks in Kenya. Interest rate was also found to have negative and significant influence on financial performance of equity investments among investment banks in Kenya. In addition, exchange rate has negative significant influence on financial performance of equity investments among investment banks in Kenya. The study therefore recommends any investor including financial investors to methodically analyze inflation trends and understand how it affects the company’s financial performance. Investors must also be in a position to predict the future concerning inflation changes.

scholarly journals Relationship Between Selected Macroeconomic Variables and the Financial Performance of Investment Banks in Kenya

2021 ◽  
Vol 13 (11) ◽  
pp. 98
Author(s):  
Mungiria James Baariu ◽  
Njuguna Peter
Keyword(s):  
Financial Performance ◽  
Interest Rates ◽  
Significant Influence ◽  
Investment Banks ◽  
Arbitrage Pricing Theory ◽  
Macroeconomic Variables ◽  
Pricing Theory ◽  
Equity Investments ◽  
Classical Economic ◽  
The Relationship

Currently, investment banks in Kenya are facing a lot of challenges due to persistence losses. However, the available studies are inadequate to aid investment banks in overcoming these challenges in Kenya due to mixed findings, resulting in rising uncertainty on equity investments’ performance, leading to massive losses among investment banks.  This study, therefore, sought to model the relationship between inflation, GDP, interest rates, exchange rates, and financial performance of investment banks. Arbitrage pricing theory, Modern portfolio theory as well as classical economic theory (flow-oriented model) was used. A causal research design was adopted. The study found that inflation has negative significant influence on financial performance of equity investments among investment banks in Kenya. Also, GDP has positive and significant influence on financial performance of equity investments among investment banks in Kenya. Interest rate was also found to have negative and significant influence on financial performance of equity investments among investment banks in Kenya. In addition, exchange rate has negative significant influence on financial performance of equity investments among investment banks in Kenya. The study therefore recommends any investor including financial investors to methodically analyze inflation trends and understand how it affects the company’s financial performance. Investors must also be in a position to predict the future concerning inflation changes.

scholarly journals Savings Level Determinants and Sustainability of Commercial Banks in Rwanda: A Case of I&M Bank Rwanda

2022 ◽  
Vol 6 (1) ◽  
pp. 10-27
Author(s):  
Aimable Nshimiyimana ◽  
◽  
Eugenia Nkechi Irechukwu ◽  
Keyword(s):  
Interest Rates ◽  
Commercial Banks ◽  
Financial Institution ◽  
Secondary Data ◽  
Income Level ◽  
Access To Credit ◽  
Credit Score ◽  
Descriptive Research ◽  
Specific Objective ◽  
Finance Department

The purpose of this study was to investigate the effect of savings level determinant on sustainability in I&M Rwanda. The specific objectives were to establish the effect of interest rate, income level and access to credit on the sustainability of I&M Bank. This study implemented a descriptive research design and utilized coefficient of correlation to assess the effect of each specific objective on the sustainability of the Bank. The population comprised of 12,057 including 12,050 customers and 7 staff of finance department of I&M Bank Rwanda. A sample size of 99 was calculated using Yamane (1967) simplified formula. To accomplish this aim, both primary and secondary data are used. The researcher used simple random and purposive sampling techniques. A questionnaire and interview have used to collect data. Quantitative data was obtained using questionnaire while a financial statement of I&M Bank covering 2016-2020 was used as secondary data. Descriptive and inferential statistical analysis showing mean, standard deviation, correlation and regression was used statistical Package for Social Sciences (SPSS) version 26.0 to analyze statistical information while content analysis used to analyze qualitative information. The findings and recommendations for this study addressed to the I & M Bank Rwanda, for decision-making and policies. The study found that interest rates, income level and access to credit have significant positive effect on sustainability of commercial banks in Rwanda at 78%, 90.5% and 92.9% respectively. The relationship among saving level determinants and sustainability of business bank was also determined to be linear with increase in get admission to credit score by means of clients. The researcher concluded that saving degree and get admission to credit volatility had more effect on sustainability of banks. The study endorsed that guideline to be installed vicinity to boom financial institution lending and ensure monitoring the same. Keywords: Savings Level Determinant, Sustainability, Commercial Banks, I&M Bank, Rwanda

scholarly journals Pengaruh Suku Bunga, Loan to Deposit Ratio (LDR) dan Pertumbuhan Kredit terhadap Inflasi di Indonesia

Jurnal Ecogen ◽  
2019 ◽  
Vol 1 (3) ◽  
pp. 557
Author(s):  
Putri Yeni ◽  
Syamsul Amar ◽  
Alpon Satrianto
Keyword(s):  
Time Series ◽  
Regression Analysis ◽  
Interest Rate ◽  
Interest Rates ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Multiple Linear Regression Analysis ◽  
Credit Growth ◽  
Descriptive Research ◽  
Positive Effect

This study aims to analyze the influence of interest rates, Loan to Deposit Ratio (LDR) and credit growth to inflation in Indonesia. This type of research is descriptive research and uses secondary data in the form of time-series from 2007 to 2016 using the method of multiple linear regression analysis. The results of this study indicate that interest rates have a significant and positive effect on inflation in Indonesia. The Loan to Deposit Ratio (LDR) has a significant and positive effect on inflation in Indonesia. Credit growth has a significant and positive effect on inflation in Indonesia. Based on the results of this study it can be concluded that there is a significant influence between interest rates, Loan to Deposit Ratio (LDR) and credit growth to inflation in Indonesia. Keyword: Inflation, Interest Rate, Loan to Deposit Ratio (LDR), Credit Growth

FOREIGN OWNERSHIP AND CORPORATE VALUE OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

2020 ◽  
Vol 1 (1) ◽  
pp. 1-11
Keyword(s):  
Stock Exchange ◽  
Secondary Data ◽  
Consumer Good ◽  
Foreign Ownership ◽  
Panel Regression ◽  
Random Effects Model ◽  
Corporate Value ◽  
Value Maximization ◽  
Descriptive Research ◽  
The Relationship

This study was motivated by the agency problem and information asymmetry problem of managers not acting completely in the interest of the owners following the shareholder’s value maximization objective. The study therefore sought to determine the effect of foreign ownership on corporate value of listed consumer good firms in Nigeria. Tobin Q was adopted as proxy for corporate value. The study adopted a descriptive research design using panel regression analysis to explain the relationship between the research variables. The population for the study was all consumer good firms listed on the Nigerian Stock Exchange (NSE) as at December 2016. Ten years panel Secondary data from CBN statistical bulletins, NSE reports, SEC reports and individual firm’s books were used for the study. From Random Effects Model of the analysis, the study found a positive non-significant effect of Foreign Ownership on Corporate Value of the sampled firms. This study recommends that foreign ownership policies of the firms can remain indifferent since its effect is insignificant.

LOW-FREQUENCY VOLATILITY AND MACROECONOMIC DYNAMICS: CONVENTIONAL VERSUS ISLAMIC STOCK MARKETS

2020 ◽  
pp. 1-28 ◽  
Author(s):  
HONG-BAE KIM ◽  
A.S.M. SOHEL AZAD
Keyword(s):  
Interest Rates ◽  
Stock Markets ◽  
Low Frequency ◽  
Frequency Component ◽  
Market Volatility ◽  
Macroeconomic Dynamics ◽  
Macroeconomic Factors ◽  
Macroeconomic Risk ◽  
Islamic Countries ◽  
The Relationship

This study investigates the relationship between macroeconomic risk and low-frequency volatility of conventional and Islamic stock markets from around the world. Using a panel of 36 countries, representing developed, emerging and Islamic countries for the period from 2000 to 2016, the study finds that low-frequency market volatility is lower for Islamic countries and, markets with more number of listed companies, higher market capitalization relative to GDP and larger variability in industrial production. The study also finds that low-frequency component of volatility is greater when the macroeconomic factors of GDP, unemployment, short-term interest rates, inflation, money supply and foreign exchange rates are more volatile. The empirical results are robust to various alternative specifications and split sample analyses. The findings imply that religiosity has an influence on the correction of market volatility and investors may consider the Islamic stocks to diversify their risks.

scholarly journals The Effect of Mergers in Search Markets: Evidence from the Canadian Mortgage Industry

2014 ◽  
Vol 104 (10) ◽  
pp. 3365-3396 ◽  
Author(s):  
Jason Allen ◽  
Robert Clark ◽  
Jean-François Houde
Keyword(s):  
Interest Rates ◽  
Negotiation Process ◽  
Mortgage Market ◽  
Reduced Form ◽  
Mortgage Industry ◽  
Price Distribution ◽  
Distributional Impact ◽  
The Relationship ◽  
Transaction Price ◽  
Bargaining Positions

We examine the relationship between concentration and price dispersion using variation induced by a merger in the Canadian mortgage market. Since interest rates are determined through a search and negotiation process, consolidation weakens consumers' bargaining positions. We use reduced-form techniques to estimate the mergers' distributional impact, and show that competition benefits only consumers at the bottom and middle of the transaction price distribution, and that mergers reduce the dispersion of prices. We illustrate that these effects can be explained by the presence of search frictions, and that the average effect of mergers on rates underestimates the increase in market power. (JEL G21, G34, K21, L13, L41)

scholarly journals ANALISIS PENGARUH FAKTOR VARIABEL MAKROEKONOMI TERHADAP JAKARTA ISLAMIC INDEX (JII) PERIODE 2010 – 2013

2014 ◽  
Vol 3 (2) ◽  
Author(s):  
Herni Ali
Keyword(s):  
Exchange Rate ◽  
Interest Rates ◽  
Regression Models ◽  
Secondary Data ◽  
Macroeconomic Variables ◽  
Multiple Regression Models ◽  
Negative Effect ◽  
The Exchange Rate ◽  
The Relationship ◽  
Positive Effect

The aim of this study is examining the relationship between cointergration and causality levels of Exchange Rate, GDP, BI interest rates and inflation on Islamic Capital Markets. The data used in this study is a quantitative secondary data in the form of time series of the period January 2010 to December 2013. The test were conducted with the approach of multiple regression models with variable index research JII (Y), the exchange rate (X1), GDP (X2) , BI rate (X3) and inflation (X4) as for hypothesis testing performed using SPSS statistical software. From the results obtained by testing the hypothesis that: a positive effect on the exchange rate, positive effect on GDP, interest harga sewa rates BI negative effect and inflation positive effect on JII. Simultanious testing into four macroeconomic variables affect the JII.DOI: 10.15408/sjie.v3i2.2061   

scholarly journals ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI UTANG LUAR NEGERI DI INDONESIA

Jurnal Ecogen ◽  
2019 ◽  
Vol 1 (3) ◽  
pp. 482
Author(s):  
Defrizal Saputra ◽  
Hasdi Aimon ◽  
Melti Roza Adry
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Error Correction ◽  
Foreign Debt ◽  
Secondary Data ◽  
Error Correction Model ◽  
Short Term ◽  
Correction Model ◽  
Descriptive Research ◽  
Long Run

This study aims to determine and analyze the factors that influence foreign debt in Indonesia with variables that effect economic growth, inflation, and foreign interest rates. This type of research is associative descriptive research, where the data used is secondary data from 1970 to 2017 obtained from institutions and related institutions, which are analyzed using the Error Correction Model (ECM) method. This study initially used the Ordinary Lest Square (OLS) method to see long-term, and used ECM because it wanted to see short-term at the same time. The findings of this study indicate that economic growth and inflation have a significant effect in the long run, but the interest rates have no significant effect, and in the short term all have a significant effect on foreign debt in Indonesia. Keywords: foreign debt, economic growth, inflation, interest rates and error correction model (ECM)

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