Abstract
The paper was done in the context of the Kenyan equity market which was represented at Nairobi Securities Exchange (NSE) for safaricom, a telecommunication firm. In this study excess returns over risk free rate was taken as dependent variable while market excess over risk free rate as independent variable .This study covers five and a half year period covering July 2008 through December 2013, the period over which Safaricom has existed as a listed company at the Nairobi Securities Exchange (NSE). Ordinary Least squares method was adopted in a linear asset pricing model to establish the statistical significance of the return premium over the NSE return. The findings indicate that Safaricom has a small return premium over and above the risk free rate of return. Secondly, the Safaricom return premiums are insignificant and that the main determinant of the equity market return premiums at the NSE is instead market characteristics. Imperatively, impressive financial performance of the technology companies as shown by their high profitability over the study period does not translate to a return premium that is significantly different from the returns of other companies quoted at the
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
