Constraints to the growth of commercial paper as a source of short term finance for listed companies
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Date
2013-01-09
Authors
Gatheru, Githambo Martin
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Abstract
The purpose of this study was to investigate constraints to growth of commercial paper
market in Kenya with reference to listed companies. Conceptual framework of the study
looked at the independent variables which included issuance requirements by CMA, issuance
costs and the effects of credit rating agencies while the dependent variable was growth of
commercial paper market. Innovations in the commercial paper market that could popularize
it as a source of short term finance was also looked at. The study population comprised of
forty seven (47) listed companies in Kenya with a minimum authorized and fully paid up
share capital of Kshs 50 million and net asset of Kshs 100 million as per the requirement of
CMA. The study used a descriptive research design and studied the entire population.
Primary data was collected using semi structured questionnaires that were self-administered
to the respondents. Secondary data was obtained from past studies on the topic, CMA reports,
CBK reports and published financial statements. Data analysis techniques included the use of
percentages and tables for easy analysis and interpretation. A multiple regression equation
was used to establish the relationship among the dependent variable and independent
variables.