Effects of interest and exchange rates on bank stock returns. Evidence from Kenya

Epameinondas Katsikas; Sanjukta Brahma Brahma; Susan Maina  Wangeci

Effects of interest and exchange rates on bank stock returns. Evidence from Kenya

Epameinondas Katsikas, Sanjukta Brahma Brahma, Susan Maina Wangeci

Finance and Accounting

Research output: Contribution to conference › Paper

Abstract

The current research attempts to investigate the effects of changes in interest rates (IR) and exchange rates (FX) on bank stock returns (BSR) in the context of Kenya. Further, it will investigate the effects of actual interest and exchange rates on bank stock returns. In addition, this study also explores the impact of 2007-2008 election violence in Kenya on these relationships. Both short and long term interest rates will be used by this study.

By applying Ordinary Least Square (OLS) regression method this study will test whether changes in interest rates and exchange rates are negatively or positively related to the BSR as well as the significance of their relationship to BSR. This will be tested together with the effect of the inclusion of inflation rates on them. In order to capture the effect of 2007-2008 election violence in Kenya the significance of IR and FX pre and post the election period will be evaluated with regard to their effect on BSR.

Original language	English
Publication status	Published - 13 Jun 2015
Event	5th International Conference of the Financial Engineering and Banking Society - Nantes, France Duration: 11 Jun 2015 → 13 Jun 2015 https://www.febsociety.org/conferences/international-conferences/5th-international-conference/overview/ (Link to conference website)

Conference

Conference	5th International Conference of the Financial Engineering and Banking Society
Country/Territory	France
City	Nantes
Period	11/06/15 → 13/06/15
Internet address	https://www.febsociety.org/conferences/international-conferences/5th-international-conference/overview/ (Link to conference website)

Keywords

interest rate
exchange rate
banks
stock returns
Kenya

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Cite this

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title = "Effects of interest and exchange rates on bank stock returns. Evidence from Kenya",

abstract = "The current research attempts to investigate the effects of changes in interest rates (IR) and exchange rates (FX) on bank stock returns (BSR) in the context of Kenya. Further, it will investigate the effects of actual interest and exchange rates on bank stock returns. In addition, this study also explores the impact of 2007-2008 election violence in Kenya on these relationships. Both short and long term interest rates will be used by this study.By applying Ordinary Least Square (OLS) regression method this study will test whether changes in interest rates and exchange rates are negatively or positively related to the BSR as well as the significance of their relationship to BSR. This will be tested together with the effect of the inclusion of inflation rates on them. In order to capture the effect of 2007-2008 election violence in Kenya the significance of IR and FX pre and post the election period will be evaluated with regard to their effect on BSR.",

keywords = "interest rate, exchange rate, banks, stock returns, Kenya",

author = "Epameinondas Katsikas and Brahma, {Sanjukta Brahma} and Wangeci, {Susan Maina}",

note = "Author emailed to clarify conference proceeding/conference paper. ST 29/09/20 - author confirmed conference paper. ST 29/09/20 Confirmed event from other repository: https://kar.kent.ac.uk/54192/; 5th International Conference of the Financial Engineering and Banking Society ; Conference date: 11-06-2015 Through 13-06-2015",

year = "2015",

month = jun,

day = "13",

language = "English",

url = "https://www.febsociety.org/conferences/international-conferences/5th-international-conference/overview/",

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TY - CONF

T1 - Effects of interest and exchange rates on bank stock returns. Evidence from Kenya

AU - Katsikas, Epameinondas

AU - Brahma, Sanjukta Brahma

AU - Wangeci, Susan Maina

N1 - Author emailed to clarify conference proceeding/conference paper. ST 29/09/20 - author confirmed conference paper. ST 29/09/20 Confirmed event from other repository: https://kar.kent.ac.uk/54192/

PY - 2015/6/13

Y1 - 2015/6/13

N2 - The current research attempts to investigate the effects of changes in interest rates (IR) and exchange rates (FX) on bank stock returns (BSR) in the context of Kenya. Further, it will investigate the effects of actual interest and exchange rates on bank stock returns. In addition, this study also explores the impact of 2007-2008 election violence in Kenya on these relationships. Both short and long term interest rates will be used by this study.By applying Ordinary Least Square (OLS) regression method this study will test whether changes in interest rates and exchange rates are negatively or positively related to the BSR as well as the significance of their relationship to BSR. This will be tested together with the effect of the inclusion of inflation rates on them. In order to capture the effect of 2007-2008 election violence in Kenya the significance of IR and FX pre and post the election period will be evaluated with regard to their effect on BSR.

AB - The current research attempts to investigate the effects of changes in interest rates (IR) and exchange rates (FX) on bank stock returns (BSR) in the context of Kenya. Further, it will investigate the effects of actual interest and exchange rates on bank stock returns. In addition, this study also explores the impact of 2007-2008 election violence in Kenya on these relationships. Both short and long term interest rates will be used by this study.By applying Ordinary Least Square (OLS) regression method this study will test whether changes in interest rates and exchange rates are negatively or positively related to the BSR as well as the significance of their relationship to BSR. This will be tested together with the effect of the inclusion of inflation rates on them. In order to capture the effect of 2007-2008 election violence in Kenya the significance of IR and FX pre and post the election period will be evaluated with regard to their effect on BSR.

KW - interest rate

KW - exchange rate

KW - banks

KW - stock returns

KW - Kenya

M3 - Paper

T2 - 5th International Conference of the Financial Engineering and Banking Society

Y2 - 11 June 2015 through 13 June 2015

ER -

Effects of interest and exchange rates on bank stock returns. Evidence from Kenya

Abstract

Conference

Keywords

UN SDGs

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