International Journal of Humanities and Social Science

ISSN 2220-8488 (Print), 2221-0989 (Online) 10.30845/ijhss

The Effect of Investment in Technology on Lagged Stock Returns of Banks Listed at the Nairobi Securities Exchange
Dr. Cyrus Iraya, Kitonyi Saiti

The study sought to establish the relationship between the implementation of technology and lagged bank stock returns of banks listed at the Nairobi Securities Exchange. Information Technology is increasingly important in banking because it is an industry that is information-intensive. Therefore banks included Kenyan banks have invested heavily in new technologies in the industry. The study used a descriptive research design as it is ideal in identification of relationships among variables. A cross-sectional study was adopted as data was collected within the period 2010 to 2015. The indicators of technology in this study are internet banking, mobile banking and Automated Teller Machines commonly known as ATMs. The population of the study was the NSE listed banks as at 30 April 2016. The data collection process consisted of content analysis of the annual reports of the listed banks particularly the Chairman and CEO’s reports. The sentences about the indicators of technology were counted and analyzed. Descriptive statistics were carried out and tests of significance conducted. The regression model was used to investigate relationship. These technologies have led to convenience for customers and efficiency in bank operations however they are not without security issues.

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