Effect of Automation of Bond Trading on Bond Market Performance: The Case of Nairobi Securities Exchange
International Journal of Economics, Finance and Management Sciences
Volume 3, Issue 3, June 2015, Pages: 279-284
Received: May 4, 2015; Accepted: May 13, 2015; Published: May 26, 2015
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Stephen Mbaya Kimwele, Faculty of Commerce, Department of Accounting, Finance & Management Science, Egerton University, Nakuru, Kenya
Mary Bosire, Faculty of Commerce, Department of Accounting, Finance & Management Science, Egerton University, Nakuru, Kenya
Monica Muiru, Faculty of Commerce, Department of Accounting, Finance & Management Science, Egerton University, Nakuru, Kenya
Simon Kamau, Faculty of Commerce, Department of Accounting, Finance & Management Science, Egerton University, Nakuru, Kenya
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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.
Automation of Bond Trading, Bond Market Performance, Nairobi Securities Exchange
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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, International Journal of Economics, Finance and Management Sciences. Vol. 3, No. 3, 2015, pp. 279-284. doi: 10.11648/j.ijefm.20150303.24
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