Portfolio Composition and Financial Performance of Investment Companies Listed at the Nairobi Securities Exchange, Kenya.
| dc.contributor.author | Cheruiyot K. Solomon | |
| dc.date.accessioned | 2025-02-24T13:44:20Z | |
| dc.date.available | 2025-02-24T13:44:20Z | |
| dc.date.issued | 2024-11 | |
| dc.description | A Research Thesis Submitted to the School of Business, Economics, and Tourism in Partial Fulfilment for the Award of Degree in Masters of Science in Finance of Kenyatta University, November, 2024 Supervisors: 1.Moses Odhiambo Aluoch 2.Peter Ng’ang’a, | |
| dc.description.abstract | Stakeholder choices are greatly swayed by potential gains from investment. They generally lean towards opportunities that promise heftier rewards rather than those that offer lower returns. The downward trajectory in performance observed in investment firms enlisted on the Nairobi Securities Exchange shoulders much of the blame for this. By scrutinizing the interplay between the financial performance of publicly traded investment ventures in Kenya and the makeup of investment portfolios, this inquiry sought to furnish a response to this query. The focal point of this inquiry was to assess the influence of portfolio composition on the profit margins of investment firms featured on the Nairobi Securities Exchange. Five investment firms listed on the Nairobi Securities Exchange were the subjects under investigation. To ensure a holistic grasp of the topic at hand, the research melded principles from other theories, including the Modern Portfolio Theory, Quantity Theory of Inflation, Capital Asset Pricing Model, Theory of Active Portfolio Management and the Black-Litterman Theory, to appraise a company's holdings. The scrutiny adopted a theoretical model to assess a company's holdings. The examination grounded itself on positivist philosophical tenets and a causal research approach. The five investment firms listed on the Nairobi Securities Exchange constituted the intended recipients of this inquiry, which was executed using secondary data procured from the exchange and the websites of the relevant investment firm. The research study commenced in 2015 and concluded after an eight-year span, terminating in 2022. To ensure the research was conducted within the bounds of legality and ethics, Kenyatta University and the National Commission for Science, Technology, and Innovation both provided their sanction for the study to gather data. In the data analysis phase, both descriptive and inferential statistics were brought into play. Descriptive statistics, including standard deviation, mean, and median, were presented in tables and charts. In terms of inferential statistics, panel regression analysis and correlation were applied. Prior to executing the panel regression analysis, diagnostic tests were administered to affirm the assumptions of the panel model. The outcomes gleaned from the panel data exhibited that venturing into equity funds exhibited a favorable connection with financial performance. Bond investments and financial performance displayed a feeble correlation. A slight and statistically insignificant affirmative correlation surfaced between real estate investments and return on investment. Mutual fund investments had a constructive and noteworthy influence on the financial performance of investment firms. The interplay between the financial performance of Kenyan listed investment entities and the composition of their portfolio was significantly shaped by inflation. The study indicated that the financial performance of investment firms registered on the Nairobi Securities Exchange was markedly influenced by the composition of their portfolio. The inquiry unearthed a substantial correlation between returns on investment and equity fund investments. Financial performance and investments in mutual funds exhibited a modest but constructive correlation. Bond and real estate investments were found to have no appreciable effect on the return on investment for listed investment enterprises. To enhance their financial performance and more effectively mitigate their firm's investment risk, the study recommended that investment company management uphold a well-balanced portfolio of investments. In an endeavor to refine their financial performance, investment firms should give heed to equity investments. This necessitated investing in dependable counters with superior dividend payout and appreciation potential | |
| dc.description.sponsorship | Kenyatta University | |
| dc.identifier.uri | https://ir-library.ku.ac.ke/handle/123456789/29642 | |
| dc.language.iso | en | |
| dc.publisher | Kenyatta University | |
| dc.title | Portfolio Composition and Financial Performance of Investment Companies Listed at the Nairobi Securities Exchange, Kenya. | |
| dc.type | Thesis |