Market Authority Research Articles

MODERATING EFFECT OF INFLATION RATES ON THE RELATIONSHIP BETWEEN FOREIGN EXCHANGE RATES AND STOCK PRICES IN THE KENYAN CAPITAL MARKET

<p>There has been a downward trend in the equities market with NSE 25, NASI, and NSE 20 declining by 9.9%, 3.5%, and 5.7% respectively from 2012 to 2015 and 2017. Ever since the Shilling was allowed to float freely, the unpredictability of Nairobi’s exchange market has been largely observed and in 2006 February, the index in NSE 20-Share rose to 4057, 2007 January it went further to 5774, but in February 2009 it hit a low of 2475. The drop went further in 2011 by 27%. This brought about losses to investors for example in 2009 when brokerage firms collapsed. This has led to a loss of confidence in investors in the Nairobi Securities; and for this reason, researchers have to come in and work together to find ways of stabilizing our stock market. This research seeks to add value to the literature by analyzing whether the regulation of the interaction of inflation rates with exchange rates on stock prices will stabilize the undesirable situation. Stock market plays an important role of intermediation in the economy and enhancing investors’ confidence in the market can have a positive impact on resource allocation hence economic growth. Reviewed literature has found the effects both in the short-run and the long-run. The disparity of their results might be attributed to different countries that are being analyzed on different capital mobilities, economic links, trade volumes, and methodologies among others. This study established the moderating effect of inflation rates on the relationship between foreign exchange rates and stock prices. The study is built on the theory of stock prices. The research adopted a correlational research design. Time series monthly secondary data was collected from January 1998 to December 2018. Multivariate analysis was employed. The 2-step hierarchical regression which resulted in an R<sup>2 </sup>change of 3% was fairly a good increase in the predictive capacity for stock price changes. The study therefore concluded that Inflation Rates moderate the relationship between stock prices and exchange rates and recommends that the Central Bank of Kenya as the regulator and Capital Markets Authority (CMA) should consider formulating favorable policies to manage Inflation rates as it is an investment driver in the economy.</p><p><strong> </strong></p><p><strong>JEL</strong>: E31; D53; E44</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0603/a.php" alt="Hit counter" /></p>

Nexus between Chat GPT usage dimensions and investment decisions making in Pakistan: Moderating role of financial literacy

This study's primary goal is to investigate and gain better knowledge of the relationship between ChatGPT usage dimensions such as analyzing data, managing risk, optimizing portfolios, forecasting market trends, and conducting sentiment analysis and investment decisions of investors in the Pakistan stock market, as well as the moderating role of financial literacy. The sample for this study included individual stock market investors in Pakistan. Using a self-administered questionnaire and a cross-sectional design, a non-probability convenience sampling technique followed by snowball techniques was used to collect data from 388 active and potential individual investors. The study's findings showed that ChatGPT usage dimensions have a positive and significant impact on investment decision making. Furthermore, financial literacy is found to moderate the relationship between optimizing portfolios, forecasting market trends, and investment decision making. The study's findings outlined practical implications for the researcher, financial advisors, individual investors, governmental decision-makers, policymakers, and stock market authorities who are interested in leveraging the benefits of artificial intelligence and machine learning in investment decision making in the context of emerging economies like Pakistan.

ОЦЕНКА РЕЗУЛЬТАТОВ И ДАЛЬНЕЙШИХ ПЕРСПЕКТИВ ВНЕДРЕНИЯ ЭТАЛОННОГО РЕГУЛИРОВАНИЯ В ЭЛЕКТРОЭНЕРГЕТИКЕ

Since 2018, the electric power industry has been undergoing an evolutionary restructuring of approaches to the formation of regulated tariffs. In particular, the government of the Russian Federation passed a decree introducing new rules of sales markups of GESs using the analogue comparison method. It provides for normalization of operating expenses. All participants in the electricity market and state executive authorities needed to reconfigure with reference of a radical transformation of approaches to tariff regulation. The authors of the article focus on the assessments lack of the reconfiguration results and the small volume of recommendations for expanding the use of yardstick regulation. The article summarizes the results of the five-year period of the new tariff regulation approach of GESs. The authors also presented an assessment of the prospects for further use of the analogue comparison method in relation to electric grid enterprises. This was the purpose of the article. To achieve this goal, the authors analyzed the results of the switch to the analogue comparison method. In particular, the article examines changes in sales markups: an increase in the sales markup median value of GESs has been revealed by 2–3 times since 2018, depending on the group of consumers. In conclusion, the authors proposed possible tools for adjusting and fine-tuning the method of analogues comparison in relation to the GESs activities. The article also gives the author's assessment of the prospects for expanding this method to other natural monopoly segments, including electricity transmission and distribution.

Who should select the external auditor in emerging economies? Role of institutional ownership and family ownership

Aim/purpose – This study reports the demand for Big 4 audits among institutional and family owners, the two dominant ownerships in the GCC countries. We conducted this in-depth study to gain an understanding of the type of firms, family-owned or institu- tional-owned firms that lead to choosing audit firms. Design/methodology/approach – This study employed a quantitative cross-country study by selecting a sample based on secondary data extracted from the Capital IQ data- -set from a panel of 1827 non-financial firms listed on the stock exchanges of the Gulf Cooperation Council (GCC) countries from 2010 to 2018. The hypothesized effects of institutional ownership (IO) and family ownership (FO) on the selection of external auditors in these countries were examined using logit, probit, and heteroskedastic probit analysis. Findings – The study finds that institutional investors play a crucial role in influencing firms’ choice of auditors in the GCC. Family-owned firms tend to hire non-Big 4 firms when the owners actively monitor the firms’ financial transactions. In addition, the study finds that both domestic and foreign institutional investors have a significant positive effect on auditor selection, with domestic institutional investors having priority. These findings support the efforts of market authorities in the GCC to highlight the critical role of IO over FO in improving audit quality. Research implications/limitations – The results are highly relevant for shareholders, executives, institutional investors, regulators, and academics. They help them improve the growth of capital and audit markets by developing best practices, thereby helping achieve an optimal framework for auditor choice that matches higher audit quality. This study focuses on only two types of ownership structures (institution and family) despite the many options because of the extensive debates and discussions on the association between the studied ownership types and auditor choice. Originality/value/contribution – Study highlighted the role of institutional investors in GCC countries as one of the most attractive emerging economies in the Middle East. Since no research has been conducted on the role of institutional and family investors in selecting external auditors in GCC countries, this study has made a significant contribu- tion to the accounting and auditing literature. It mitigates the gap in the literature on emerging markets. The findings can provide policymakers with guidelines for including institutional investors and FO in GCC countries to ensure high-quality audits. Keywords: institutional ownership (IO), family ownership (FO), auditor choice, Gulf Cooperation Council, emerging economies. JEL Classification: G23, G32, D10, M42.

High-Frequency Trading Strategies and their Market Impact in Kenya's Capital Market Authority

This study explores the impact of high-frequency trading (HFT) on financial markets in Kenya compared to established economies like the United States and Europe. Through a comparative analysis, the research highlights significant differences in market liquidity, regulatory frameworks, technological infrastructure, investor behavior, and price volatility. The findings indicate that while HFT generally enhances liquidity in developed markets by narrowing bid-ask spreads, its introduction in Kenya may not yield similar benefits due to historically lower trading volumes and limited participation. The regulatory environment in Kenya is underdeveloped, posing challenges for effective oversight and risk management, in contrast to the comprehensive frameworks in established markets. Technological disparities further hinder local firms from competing effectively in HFT, as essential infrastructure such as low-latency data feeds and co-location services is lacking. Moreover, the impact of HFT on market behavior in Kenya is less pronounced, with insufficient competitive pressure for traditional investors to adopt algorithmic strategies. Concerns about increased price volatility in Kenya are heightened by inadequate regulatory safeguards, potentially leading to market instability. The study emphasizes the need for tailored regulatory approaches and technological investments to harness HFT's potential benefits while mitigating associated risks in emerging markets.

Capital Structure and Financial Performance of Non-Financial Firms Listed at Nairobi Securities Exchange, Kenya

Background: Globally, the choice of an optimal capital structure has posed a great challenge to most firms. In Kenya, some firms have achieved optimum levels while others are still faced with serious capital structure issues. Theoretically, there is a general inclination that capital structure employed automatically affects financial performance. It is against this background, that the purpose of the study was to establish the effect of capital structure on financial performance of non-financial firms listed at the Nairobi Securities Exchange in Kenya. Specifically, the study sought to establish the effect of capital structure on financial performance. Theoretical literature postulates conflicting relationship between capital structure and financial performance which has underscored the usefulness of panel dataset in the study. Materials and Methods: This study employed both cross sectional and longitudinal research designs, organized as panel data. The sample population of the study consisted of thirty-three (33) non-financial listed firms. This study only used data from the 2009 to 2018 annual financial reports. The study adopted purposive sampling procedure in the determination of the sample size and secondary data from annual financial reports of the firms, African Listed Companies, Nairobi Securities Exchange publications and Capital market Authority handbooks were used. STATA statistical tool was employed in the analysis of the data. Descriptive statistics were used to analyse the main characteristics of the variables. The hypotheses were tested using regression analysis and correlation analysis. Results: The findings of the study revealed that the effect of Debt Ratio (DR) and Debt-Equity Ratio (DER) on firms’ financial performance (ROA) was statistically significant. Further, the results of Equity Ratio showed that the effect of equity finance on financial performance was not statistically significant. Conclusions: The study not only contributed to understanding the link between capital structure and financial performance in Kenya, but at the same time confirms the findings of previous studies which revealed significant and insignificant links between capital structure and financial performance.

Consequences of the Financial Markets Authority Guidelines on the Relevance of Non-GAAP Earnings

In this paper, we investigate the consequences of the FMA guidelines on the relevance of non-GAAP earnings (NGE). These guidelines require firms NGE to conform to a certain code of practice to improve transparency and comparability. From our sample of 441 NGEs disclosed over the period 2011-2017, we find a decrease in the relevance of NGE after the FMA guidelines were implemented. Nonetheless, we find that market participants reward NGE disclosed after 2015, when they are accompanied by “better quality” communication (i.e. compliance with the FMA guidelines). Also, we find a decrease in analysts’ forecasts dispersion after 2015, suggesting a reduction in information asymmetry following the application of FMA guidelines.

The impact of Covid-19 on the behavior of actors and the regulation of the Moroccan stock market

Purpose: This study examines the impact of the COVID-19 health crisis on the behavior of actors and legislation on the Moroccan stock market. Research Methodology: This study uses the collection and exploitation of data from key institutional reports and legal data limited to certain laws and regulations (excluding relevant case law and doctrine) attesting to the orientations of capital market authorities following the declaration of a state of health emergency. Results: The analysis revealed that the measures taken by the government, central bank, and AMMC helped curb the capital market and provide investors with the tools they need to strengthen the resilience of Morocco's capital market. Limitations: The first concerns the difficulty of analyzing the long-term effects of a health crisis. The second limitation concerns the existing models, theories, and methodological limitations. Contribution: This documentary study synthesizes the psychic reactions and behaviors of Moroccan stock exchange market actors in times of crisis. In addition, it enables researchers to better understand the legal interventions taken to regulate and redirect behaviors influenced by the pandemic in the Moroccan capital market.

The Effect of Financial Performance on The Tobin's Q Value of Company Investment

This study aims to provide To explain the impact of financial performance, corporate social responsibility and good corporate governance on firm value. Companies that sell their shares to the public by going public must have a good picture. A good picture is necessary to gain the trust of investors. Companies in an effort to gain the trust of investors will provide reliable information. This information describes the character of the company, especially regarding financial performance. This study used a descriptive associative quantitative research method. To determine the effect of firm value used regression analysis techniques. From the research results there is a significant influence between financial performance on firm value, this occurs due to the Efficient Market Semi Strong Hypothesis. Based on the results of the discussion that has been put forward, the conclusion in this study is simultaneous that there is a significant influence between financial performance, corporate social responsibility, good corporate governance on firm value ratio expressed by the Tobin's Q, when investing in companies that are included in the LQ-45 stock indexer in Indonesia, list namely the best stock rating index in Indonesia. The limitation in this study is that the measurement for company value is to use Tobin's Q, which is calculated based on the market value/price of a company divided by the company's asset value. Measurement of company value is carried out for a years. The results of this research for the industrial world can be used as a source of information about efforts in implementing financial performance on firm value with CSR disclosure and good corporate governance (GCG) as intervening variables. And it is hoped that it can provide useful information for readers, especially investors, potential investors, and capital market authority bodies regarding the relevance of CSR information disclosure and good corporate governance in company annual reports with firm value and financial performance.

Mediating Effect of Pleasure-Seeking and Loss Aversion in the Relationship Between Phantasy and Financial Risk Tolerance and the Moderating Role of Confidence

Abstract Research background Deciding to trade in financial markets is psychologically difficult and wearing. Investors want to find rational justifications for the correctness of their decisions. However, there is uncertainty in financial markets. This uncertainty does not allow for mathematical calculations. In such case, feelings get involved in the decision process. Purpose This study aimed to investigate the mediating effect of two motivational systems (loss aversion and pleasure-seeking) on the effect of phantasy, which is fantasies that are based on an individual’s early infancy, that develop and exist throughout life, but are not consciously aware of by the individual, on financial risk tolerance, and to analyze the moderating effect of confidence in the effect of these two motivational systems on financial risk tolerance. Research methodology Data were collected from 1,643 subjects from Turkey in November–December 2021 using a questionnaire. The link to the survey prepared by the researchers was created using Google Survey and shared by our graduates’ students on their social networks. Results According to the results, phantasy had a positive and significant effect on both motivational systems and financial risk tolerance. Simultaneously, two motivational systems have a mediating effect on the relationship between phantasy and financial risk tolerance. Confidence, on the other hand, has a moderating effect on the effect of these two motivational systems on financial risk tolerance. In addition, as expected, phantasy showed its effect on all individuals without differing according to demographic variables. Despite this, loss aversion and low financial risk tolerance were higher in female and married individuals. While pleasure-seeking is higher in males, it does not differ according to marital status. Novelty Modeling unconscious processes, motivational systems and individual characteristics such as confidence together will provide important and useful findings for both investors and market authority in terms of showing the effect of unconscious and cognitive factors on financial risk tolerance.

EFFECTS OF CAPITAL STRUCTURE ON AGENCY COSTS IN COMMERCIAL AND SERVICES COMPANIES LISTED AT THE NAIROBI SECURITIES EXCHANGE IN KENYA

<p>Academic and business research has focused on the competing interests of shareholders and managers, as well as the resulting agency fees. It is well known that managers have a strong desire to advance their own interests, such as their pay, the size of their companies, and the value of their securities. According to agency theory, shareholders will pay agency costs in order to reduce these conflicts. According to the free cash flow principle, when a company creates considerable free cash flow, there are significant agency conflicts between stockholders and executives. A number of empirical studies have proposed solutions to this problem, one of which is the use of a capital structure. Numerous studies on the effect of capital structures on agency costs have been conducted, with varying degrees of success. However, the majority of these studies took place in industrialized nations. The primary goal of this study, which lasted from 2012 to 2018, was to determine how capital configuration affected agency expenses in Kenyan commercial and service firms that were listed on the Nairobi Securities Exchange. The study's specific goals included investigating the effects of equity on agency costs, retained earnings on agency costs, long-term debt on agency costs, and firm size as a moderator of the effects of investment configuration on agency costs. A descriptive research method was used in this study to provide a thorough examination of the relationship between capital structure and agency costs. To collect the required seven-year panel data from the entire population of firms, the Nairobi Securities Exchange, the Capital Market Authority's data banks, and the firms' websites were used. These data were then examined at two levels of statistics: descriptive statistics and inferential statistics. In Kenyan commercial and service firms, variations in equity capital, retained earnings, and long-term debts jointly accounted for 65.9% of the variations in agency costs, according to the regression results.</p><p><strong>JEL:</strong> E22; G31; L10</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0075/a.php" alt="Hit counter" /></p>

Financial leasing in Palestine “Prospects & Obstacle”

The study aims to test the impact of financial leasing on the financial performance of financial leasing institutions in Palestine during the period between 2015 and 2021, the study examines the prospects and obstacles of financial leasing in Palestine. in an attempt to show the regulations of financial leasing in enhancing financial performance indicators represented by the rate of return on deposits, rate of return on ownership, rate of return on investment and rate of return on available assets. Financial leasing is a contract finance agreement that allows companies to sell goods, such as medical equipment, vehicles, and machinery, without having to pay the full price of the purchased goods. These regulations form Capital Market Authority (CAM) in Palestine that provides access to goods and services that maybe it is expensive to purchase. However, there are several obstacles to the growth of financial leasing in Palestine, including the lack of roles and regulations, the limited of supplying leasing products, and the lack of access to finance the contracts. The study concludes that while financial leasing can provide businesses in Palestine with the necessary financing to obtain the required goods and services, the current lack of a regulatory environment and the limited access to financing and leasing products are major obstacles to its growth. The purpose of the study is to find out the obstacles of financial leasing in Palestine, to understand the potential for this type of financing, and to the challenges that must be overcome for it to become more widely available. The paper begins by providing an overview of financial leasing and its benefits in Palestine. It then discusses the major obstacles to the growth of financial leasing in Palestine, including the lack of regulations and laws, the limited supply of leasing products, and the lack of access to financing. Finally, the paper outlines potential solutions for overcoming these obstacles and promoting the growth of financial leasing in Palestine. The study intends to analyze the influence of financial leasing on the financial performance of Palestinian financial leasing institutions between 2015 and 2021. It also examines the opportunities and challenges of financial leasing in Palestine. to demonstrate the regulations of financial leasing in improving financial performance measures such as the rate of return on deposits, rate of return on ownership, rate of return on investment, and rate of return on available assets. Financial leasing is a type of contract finance agreement that allows businesses to sell things like medical equipment, automobiles, and machinery without having to pay the full purchase price. In Palestine, these regulations create the Capital Market Authority (CAM) [1], which gives access to goods.

The Multiple-Scenario Valuation Method: When Robust Strategy Meets Valuation Needs

In the presence of great uncertainty and volatility, the valuation of single assets or enterprises can be extremely complicated. Over the last few years, the European Securities and Market Authority (ESMA) has analyzed the potential impacts of these uncertainties on the application of the Impairment of Assets (IAS 36) accounting standards and exhorted firms adopting the IAS/IFRS accounting standards to consider multiple scenarios in forecasting information. This study, adopting a theoretical and conceptual perspective, aimed to analyze the theoretical and practical implications of the shift from single-path to multiple-scenario analysis. This paper contributes to the literature in the following ways: first, it suggests a new perspective of analysis that combines valuation needs with a strategic approach (a robust strategy). Second, it contributes to clarifying the antecedents and consequences of the ESMA recommendations. Furthermore, the paper also has practical implications as it highlights some critical issues associated with every valuation process, including the need to cope with growing uncertainty, the necessity of clarifying the great misunderstanding related to the confusion between the multiple-scenario valuation method and sensitivity analysis, and, last but not least, the importance of the relationship between strategy and the valuation process.

Effects of Exchange Rate on Performance of Equity Funds in Kenya

In recent years, Kenya has witnessed significant growth in both the quantity and scale of diversified equity mutual funds. Despite this expansion, their performance has not surpassed that of their benchmark, specifically the market return on a risk-adjusted basis. This assessment is based on various performance measures, including the Sharpe ratio. Poor performance of mutual funds in Kenya discourages individual and corporate investors, in addition to hindering the realization of Vision 2030. Investors believe that information on past performance can be used to predict future performance. The extent to which macro-economic variables affect the performance of mutual funds is unclear. Some scholars show a positive correlation, while others show a negative correlation between the variables. Other factors that had an impact on the overall economic climate, such as the COVID-19 pandemic, the war in Ukraine, and the uncertainty in Kenya's political environment as a result of its general elections, made the situation even more unpredictable. The purpose of this study was to examine the impact of the exchange rate on the performance of equity mutual funds in Kenya. The study adopted a descriptive and correlational research design. The target population was 23 equity funds licensed by the Capital Market Authority, of which eleven were sampled through a census. The study relied on secondary data from the Central Bank of Kenya, the Capital Markets Authority, and the Kenya National Bureau of Statistics between 2018 and 2022. Panel data analysis was used. Descriptive statistics, encompassing measures such as mean and standard deviation, were employed in the analysis. Additionally, inferential statistics, specifically panel regression, were conducted. A static linear panel model was constructed to elucidate the relationship between independent variables and the dependent variable, which in this context is financial performance. The data was organized and presented in tables. Notably, the results indicated a noteworthy negative relationship between the exchange rate and the financial performance of equity funds. The findings of this research are of great importance to policymakers, managers of equity funds, and the scholarly community at large. It will be of significance to researchers and future scholars who might need to refer to it and build on it for further research. The study recommended that equity fund managers should invest in both domestic and foreign portfolios to diversify the risk associated with exchange rates.

Corporate Governance Practices and Performance of Deposit Taking Sacco's in Nairobi City County Kenya

Good performance of SACCOs is a key ingredient for its continuous existence and sustainability. The financial intermediation function carried out by SACCOs is dependent on how well they perform. Over the years, there have been various concerns by policy makers and academician over the SACCOs' dismal performance in Kenya. Despite the various corporate governance initiatives and measures implemented by important organizations such as the Centre for Company Governance, the issue of firm corporate governance remains unresolved, despite the involvement of the Capital Markets Authority and SASRA. The aim of this research is to determine how the performance of deposit taking SACCOs in Nairobi is influenced by corporate governance. The research focused on how stakeholder involvement, board composition, organizational structure, and control environment affect Nairobi-based deposit-taking SACCOs’ performance. The study's base was stakeholder, agency, stewardship, and resource dependence theory. The study employed a descriptive design. A census approach was used whereby all the deposit taking SACCOs in Nairobi were included in the study. The target population was 47 CEOs, 47 Sacco officers, 47 heads of finance and 47 heads of credit department. Data was gathered using structured questionnaire. In this research, to evaluate the construct and content validity, the researcher did a pilot test. Both descriptive and multiple regression analysis were used to examine the data. The findings showed that corporate governance factors (board composition, organization structure, control environment and stakeholder involvement) had a correlation coefficient (R) of 0.691 with an R squared of 0.477. From the ANOVA table corporate governance had a significant effect on performance of DT Saccos (F=28.513; p= 0.000). From the regression, corporate governance (board composition, organization structure, control environment and stakeholder involvement) had a positive effect on performance of DT Saccos. This study concludes that corporate governance (board composition, organization structure, control environment and stakeholder involvement) has a positive effect on performance of DT Saccos in Nairobi, Kenya. The study recommends that management of DT Saccos improve their corporate governance for increased performance levels. There is need for similar research based on other factors influencing performance, other measures of the variables, other Saccos & institutions as well as adopting secondary data.

Securitization Enhancing Liquidity in Kenya

Purpose: This paper aims to explain the benefits of securitization in Kenya’s economy that is to both the government, the private sector, and the Kenya capital market. The paper provides a road map on how the government and private sector can diversify their funding sources, lower borrowing costs, improve liquidity, and transfer risk. It will help offer clear policy direction to government policymakers in efforts geared towards the introduction of asset securitization in the country which will increase liquidity, economic growth, and expansion of capital in the country. The regulator of the financial market Capital Market Authority (CMA) will therefore formulate guidelines and regulatory requirements that can enhance the performance of the securitization industry. The paper will also be useful to corporate strategists of companies as they seek to optimize return considerations in driving shareholder wealth margins. The paper is expected to motivate and be a key reference for future research work in the securitization industry in Kenya. Securitization is one of the innovative products that may be used by government and private firms and investors to increase wealth.
 Methodology: The study adopted a desktop methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library
 Findings: Securitization will bring benefits in terms of growth in the economy and expansion of capital markets and hence wealth creation. Securitization involves the conversion of a pool of assets with a regular and predictable cash income such as mortgage repayments receivables, and credit card receivables e,t,c into a security or marketable instrument that allows the institution to transact a large number of its assets, which would otherwise not be attractive as individual. The originator who will be the financial institution or the government then creates a legal entity known as a Special Purpose Vehicle (SPV). The special purpose vehicle may be in the form of a Limited Liability Company, a trust, a partnership, or even a subsidiary of the Originator. These selected receivables are then transferred to the special purpose vehicle which then becomes the owner of these receivables. The securities to be issued by the special purpose vehicle are usually rated by a rating agency. This is due to the fact that such instruments are unsecured, which will require that investors are protected.
 Unique Contribution to Theory, Practice and Policy: Profit maximising theory and theory of innovation can be used to anchor future studies on securitization enhancing liquidity. If the Government or the financial institution wants to issue 'AAA' rated asset-backed securities or mortgage-backed securities, collateralized mortgage securities, or collateralized debt obligations (CDOs)then they must choose first-class loans not prone to prepayment and default risk where originators conduct their own rating, they select all the best asset bundles for investment. In order to get a favorable rating, the special purpose vehicles can provide credit enhancement to the securities.

Cost of Capital and Investment Decision of Non-Financial Firms Listed at Nairobi Securities Exchange, Kenya

The main purpose of the study was to assess the influence of cost of capital on investment decision of non-financial firms listed at the Nairobi Securities Exchange, Kenya. The study employed the theory of Modern Portfolio and The trade-off theory. The study employed descriptive research design. The study was carried out at firms listed at the NSE, Kenya with a population of 46 non-financial firms listed at the Nairobi Securities Exchange (NSE) as at December 2019. A census of 46 non-financial firms was considered. Secondary data was collected from annual reports of the non-financial companies listed at NSE and the NSE handbooks. Expert opinion was used to ensure data validity and reliability. The data was analyzed descriptively by means and the standard deviation, while multiple regression analysis was used to establish the influence between the variables. Regression results showed that cost of equity has a positive effect on financial performance as measured by Return on Assets (β = 0.2737, p = 0.0000); cost of preference shares affects investment decision negatively and significantly (β = -0.2430, p = 0.0015), and that the effect of cost of debt on investment decision is significantly positive (β = 0.2934, p = 0.0000). Given from the findings of the study that less than 34% of variations can be attributed to the cost of capital on investment decisions for the listed non-financial firms, this study has proved that effective working capital management practices will play a crucial role in improving the overall profit margins for the listed non-financial firms at NSE. In conclusion, cost of debt is a significant positive contributor to the investment decision of the non-financial listed firms at the NSE. The debts are essential when the firm is lacking finance in running its daily expenditure smoothly. The NSE and other regulating authorities such as the Capital Markets Authority (CMA) should therefore ensure that policies are put in place to help the firms manage their cost of capital efficiently. These policies must be in line with the Sustainable Development Goals (SDGs). These policies may include availing access to credit facilities and promoting trading in shares of the listed firms and these policies should be integrated with SDGs, which recognizes that action in one area will affect outcomes in others, and that development must balance social, economic and environmental sustainability.

Examining latest costs and prescribing on Liothyronine (T3) by dose levels with respect to the 2017 Competition and Market Authority (CMA) investigation into liothyronine prices and the implementation of 2023 British Thyroid Association (BTA) guidance for appropriate patients suggesting Liothyronine daily dose levels of 5-10mg at possible split dose twice day

Examining latest costs and prescribing on Liothyronine (T3) by dose levels with respect to the 2017 Competition and Market Authority (CMA) investigation into liothyronine prices and the implementation of 2023 British Thyroid Association (BTA) guidance for appropriate patients suggesting Liothyronine daily dose levels of 5-10mg at possible split dose twice day

The Construction of Securities Public Interest Litigation System from the Perspective of Protecting Small and Medium Investors

Securities violations have dual consequences, both damaging public and private interests. The emergence of securities public interest litigation can bridge the gap between "private remedies" and "public enforcement" in the governance paths. However, due to the lack of legal provisions and judicial practice, the establishment of the securities public interest litigation system and its operation need to be explored. This article, from the perspective of protecting small and medium investors, discusses the goals and challenges of constructing the securities public interest litigation system. It also examines the necessity of using public interest litigation to restrain the abuse of controlling shareholders' rights and protect the interests of small and medium investors. Regarding the obstacles faced by current securities public interest litigation, the main issues include the questionable legislative positioning and the need for clarity in specific procedures. In the process of exploring the construction of the securities public interest litigation system, this article focuses on discussing the scope of application of public interest litigation, the selection of suing entities, and the allocation of burden of proof. It aims to enhance the understanding of the public and relevant departments regarding the construction of the public interest litigation system, while highlighting its significant role in protecting the rights and interests of small and medium investors, effectively promoting the protection of public interests and the lawful performance of regulatory authorities in the securities market, and safeguarding the healthy development of the securities market.

Tripartite evolutionary game analysis of power battery carbon footprint disclosure under the EU battery regulation

The EU's battery regulation aims to promote low-carbon and sustainable batteries and achieve carbon neutrality goals. However, in the actual implementation, limited government supervision, asymmetric information, and economic interests may induce battery manufacturers and third-party verification agencies to manipulate carbon footprint data. To prevent the occurrence of the above phenomena, this study constructs a tripartite evolutionary game model involving battery manufacturers, third-party verification agencies, and national market authorities. The model examines the strategic decision-making process, influential factors, and evolutionary stability of the three players, followed by simulation analysis. The results showed that the evolutionary system may exhibit two stable states: (0,0,1) and (1,1,0), corresponding to two strategy combinations {disclose false carbon footprints, intend rent-seeking, supervise} and {disclose true carbon footprint, reject rent-seeking, not supervise}, respectively. However, if the benefits of third-party agencies objectively assessing carbon footprints are not substantial enough, there will be only one stable state (0,0,1) in the system. To guide the evolutionary system towards the desired stable state (1,1,0), supportive policies should be implemented along with the EU battery regulation. Therefore, this study puts forward some policy recommendations in terms of institutional improvement, database construction, and the application of emerging technologies.