International Journal of Economics, Finance and Management Sciences

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Effect of Automation of Bond Trading on Bond Market Performance: The Case of Nairobi Securities Exchange

Received: 04 May 2015    Accepted: 13 May 2015    Published: 26 May 2015
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Abstract

The aim of this study was to investigate the effect of automation of bond trading on the performance of bond market at Nairobi Securities Exchange (NSE). Specifically the study sought to determine the effect of automated bond trading on trading volumes and to determine the effect of automated bond trading on market size. The study adopted a comparative research design and the population of the study comprised of all firms trading on the bond market at the NSE from 2005 to 2012. The data for the study was collected four years before automation and four years after automation. Market capitalization ratio and the number of bonds traded were used to determine pre and post-automation bond market performance. Paired t-test was used to determine whether there was a statistically significant difference between the pre and post automation period. The results of the study indicated that bond trading automation has a positive and a significant effect on the performance of the bond market.

DOI 10.11648/j.ijefm.20150303.24
Published in International Journal of Economics, Finance and Management Sciences (Volume 3, Issue 3, June 2015)
Page(s) 279-284
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Automation of Bond Trading, Bond Market Performance, Nairobi Securities Exchange

References
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Author Information
  • Faculty of Commerce, Department of Accounting, Finance & Management Science, Egerton University, Nakuru, Kenya

  • Faculty of Commerce, Department of Accounting, Finance & Management Science, Egerton University, Nakuru, Kenya

  • Faculty of Commerce, Department of Accounting, Finance & Management Science, Egerton University, Nakuru, Kenya

  • Faculty of Commerce, Department of Accounting, Finance & Management Science, Egerton University, Nakuru, Kenya

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  • APA Style

    Stephen Mbaya Kimwele, Mary Bosire, Monica Muiru, Simon Kamau. (2015). Effect of Automation of Bond Trading on Bond Market Performance: The Case of Nairobi Securities Exchange. International Journal of Economics, Finance and Management Sciences, 3(3), 279-284. https://doi.org/10.11648/j.ijefm.20150303.24

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    ACS Style

    Stephen Mbaya Kimwele; Mary Bosire; Monica Muiru; Simon Kamau. Effect of Automation of Bond Trading on Bond Market Performance: The Case of Nairobi Securities Exchange. Int. J. Econ. Finance Manag. Sci. 2015, 3(3), 279-284. doi: 10.11648/j.ijefm.20150303.24

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    AMA Style

    Stephen Mbaya Kimwele, Mary Bosire, Monica Muiru, Simon Kamau. Effect of Automation of Bond Trading on Bond Market Performance: The Case of Nairobi Securities Exchange. Int J Econ Finance Manag Sci. 2015;3(3):279-284. doi: 10.11648/j.ijefm.20150303.24

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  • @article{10.11648/j.ijefm.20150303.24,
      author = {Stephen Mbaya Kimwele and Mary Bosire and Monica Muiru and Simon Kamau},
      title = {Effect of Automation of Bond Trading on Bond Market Performance: The Case of Nairobi Securities Exchange},
      journal = {International Journal of Economics, Finance and Management Sciences},
      volume = {3},
      number = {3},
      pages = {279-284},
      doi = {10.11648/j.ijefm.20150303.24},
      url = {https://doi.org/10.11648/j.ijefm.20150303.24},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ijefm.20150303.24},
      abstract = {The aim of this study was to investigate the effect of automation of bond trading on the performance of bond market at Nairobi Securities Exchange (NSE). Specifically the study sought to determine the effect of automated bond trading on trading volumes and to determine the effect of automated bond trading on market size. The study adopted a comparative research design and the population of the study comprised of all firms trading on the bond market at the NSE from 2005 to 2012. The data for the study was collected four years before automation and four years after automation. Market capitalization ratio and the number of bonds traded were used to determine pre and post-automation bond market performance. Paired t-test was used to determine whether there was a statistically significant difference between the pre and post automation period. The results of the study indicated that bond trading automation has a positive and a significant effect on the performance of the bond market.},
     year = {2015}
    }
    

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    T1  - Effect of Automation of Bond Trading on Bond Market Performance: The Case of Nairobi Securities Exchange
    AU  - Stephen Mbaya Kimwele
    AU  - Mary Bosire
    AU  - Monica Muiru
    AU  - Simon Kamau
    Y1  - 2015/05/26
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    DO  - 10.11648/j.ijefm.20150303.24
    T2  - International Journal of Economics, Finance and Management Sciences
    JF  - International Journal of Economics, Finance and Management Sciences
    JO  - International Journal of Economics, Finance and Management Sciences
    SP  - 279
    EP  - 284
    PB  - Science Publishing Group
    SN  - 2326-9561
    UR  - https://doi.org/10.11648/j.ijefm.20150303.24
    AB  - The aim of this study was to investigate the effect of automation of bond trading on the performance of bond market at Nairobi Securities Exchange (NSE). Specifically the study sought to determine the effect of automated bond trading on trading volumes and to determine the effect of automated bond trading on market size. The study adopted a comparative research design and the population of the study comprised of all firms trading on the bond market at the NSE from 2005 to 2012. The data for the study was collected four years before automation and four years after automation. Market capitalization ratio and the number of bonds traded were used to determine pre and post-automation bond market performance. Paired t-test was used to determine whether there was a statistically significant difference between the pre and post automation period. The results of the study indicated that bond trading automation has a positive and a significant effect on the performance of the bond market.
    VL  - 3
    IS  - 3
    ER  - 

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