An investigation of the factors influencing the development of corporate bonds market: the case of Kenyan financial market

Nhat Chi Mai

No 3prdz, OSF Preprints from Center for Open Science

Abstract: The role of corporate bonds in achieving the vision 2030 cannot be down played. Corporate bonds are considered as the source of diffusing stresses on the banking sector by diversifying credit risks across the economy, interest rate and refunding risk, Supplying long-term funds for long-term investment needs, lowering funding costs by avoiding a liquidity premium and providing products with flexibility to meet the specific. The main aim of this study was to investigate the corporate bond market development in companies listed in the NSE. This- study was descriptive in nature and a census method was used since the aim of this- study is to investigate the factors influencing the development of corporate bonds market in Kenyan financial market. The researcher targeted the top management especially in the area of accounts, operations or fmance. Data collected from respondents was both quantitative and qualitative in nature and analyzed using descriptive statistics. On the other hand, qualitative data was analyzed using factor analysis. Based on findings, companies listed in NSE face the corporate bond market development challenge through inadequate disclosure of information on public debt issuance and statistics measures. The companies have insufficiently dealt with establishing repurchase (repo) market as well as setting up issuance calendars to improve transparency. Therefore, regulatory frame work in Kenya as advisory services should be enhanced to mitigate critical challenge to information availability as well as formulating policies to effectively enable, disclosure of information on public debt issuance and statistics measures.

Date: 2010-11-19
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Persistent link: https://EconPapers.repec.org/RePEc:osf:osfxxx:3prdz

DOI: 10.31219/osf.io/3prdz

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