Foreign equity flows and stock market liquidity in Kenya

Ochenge, Rogers; Ngugi, Rose; Muriu, Peter

dc.contributor.author	Ochenge, Rogers
dc.contributor.author	Ngugi, Rose
dc.contributor.author	Muriu, Peter
dc.date.accessioned	2021-05-26T06:45:20Z
dc.date.available	2021-05-26T06:45:20Z
dc.date.issued	2020-06
dc.identifier.citation	Cogent Economics & Finance, 8:1	en_US
dc.identifier.uri	https://doi.org/10.1080/23322039.2020.1781503
dc.identifier.uri	http://repository.embuni.ac.ke/handle/embuni/3773
dc.description.abstract	In this paper, we explore the dynamic relationship between aggregate foreign equity inflows and aggregate liquidity of the Kenyan stock market using transactional foreign trading data and several liquidity measures. We employ vector autoregression with monthly gross foreign inflows, local stock market liquidity and returns over the period 2011–2018. We discover a one- way causality link from inflows to liquidity and that foreign investors promote rather than impede local liquidity. Our analysis therefore renders support to the recent policy by Capital Market Authority of Kenya that now allows foreign investors to acquire up to 100% of any stock listed at the Kenyan stock exchange market.	en_US
dc.language.iso	en	en_US
dc.publisher	Taylor and Francis	en_US
dc.subject	Foreign equity inflows	en_US
dc.subject	stock market liquidity	en_US
dc.subject	vector autoregression	en_US
dc.title	Foreign equity flows and stock market liquidity in Kenya	en_US
dc.type	Article	en_US