Bond is regarded as one of the popular debt instruments in the developed nations. It plays import... more Bond is regarded as one of the popular debt instruments in the developed nations. It plays important role in developing diversified investment environment, which can act as a cushion against risk from the concentration in the bank loans and equity market. Bond market would promote efficient diversification and protects the investors from concentrated financial markets securities. Although bond is popular in developed nations it is still not popular in developing countries like Nepal (Bhattacharyay, 2013). Investors like to invest in other securities than investing on bonds. The main objective of the study is to determine the factors that influence investment on bond market and whether the independent variables that consist of safety, return, liquidity, tax planning, pricing structure, governance and investor protection and regulation are significant in determining the investment on bond market by institutional investors. The study used structured questionnaire techniques from 80 respondents which includes various investors from Kathmandu valley. The study is based on descriptive and analytical research design. This study used quantitative method for data collection for the purpose of analysis. Mainly structured questionnaire survey was used to generate responses based on which statistical analysis is done to test hypothesis. The sampling technique for the study followed convenience sampling. For the analysis of collected data, various statistical tests such as Correlation, Anova and Regression test were conducted with the help of statistical software SPSS. There are few limitations for this study which are this study might not include all the variables, to study the factors that influence investment on bond market, respondents are from Kathmandu valley only and majority of respondents are other investors which may provide bias representation to the result. The major findings of this research document are: there exits positive relationship between safety, return, tax planning, governance and investor protection, regulation and investment on bond market while negative relation between liquidity and pricing structure. Hypothesis test also inferred that there is significant relationship between governance and liquidity with investment on bond market whereas safety, return, tax planning, pricing structure and regulation did not have a significant relationship with investment on bond market. The study shows that low liquidity and governance present in the bond market is the main reason for low investment on bond market. The market size of bond should be bigger to have more liquidity on the market and attract more investors on the market. Similarly, proper trading mechanism should be established to ensure bonds are easily traded in the market which helps to increase liquidity of the bonds. Investors do not like to invest on bonds as there is large information asymmetry present and low degree of transparency present in the market so government should ensure that information is provided on timely basis on transparent manner.
Bond is regarded as one of the popular debt instruments in the developed nations. It plays import... more Bond is regarded as one of the popular debt instruments in the developed nations. It plays important role in developing diversified investment environment, which can act as a cushion against risk from the concentration in the bank loans and equity market. Bond market would promote efficient diversification and protects the investors from concentrated financial markets securities. Although bond is popular in developed nations it is still not popular in developing countries like Nepal (Bhattacharyay, 2013). Investors like to invest in other securities than investing on bonds. The main objective of the study is to determine the factors that influence investment on bond market and whether the independent variables that consist of safety, return, liquidity, tax planning, pricing structure, governance and investor protection and regulation are significant in determining the investment on bond market by institutional investors. The study used structured questionnaire techniques from 80 respondents which includes various investors from Kathmandu valley. The study is based on descriptive and analytical research design. This study used quantitative method for data collection for the purpose of analysis. Mainly structured questionnaire survey was used to generate responses based on which statistical analysis is done to test hypothesis. The sampling technique for the study followed convenience sampling. For the analysis of collected data, various statistical tests such as Correlation, Anova and Regression test were conducted with the help of statistical software SPSS. There are few limitations for this study which are this study might not include all the variables, to study the factors that influence investment on bond market, respondents are from Kathmandu valley only and majority of respondents are other investors which may provide bias representation to the result. The major findings of this research document are: there exits positive relationship between safety, return, tax planning, governance and investor protection, regulation and investment on bond market while negative relation between liquidity and pricing structure. Hypothesis test also inferred that there is significant relationship between governance and liquidity with investment on bond market whereas safety, return, tax planning, pricing structure and regulation did not have a significant relationship with investment on bond market. The study shows that low liquidity and governance present in the bond market is the main reason for low investment on bond market. The market size of bond should be bigger to have more liquidity on the market and attract more investors on the market. Similarly, proper trading mechanism should be established to ensure bonds are easily traded in the market which helps to increase liquidity of the bonds. Investors do not like to invest on bonds as there is large information asymmetry present and low degree of transparency present in the market so government should ensure that information is provided on timely basis on transparent manner.
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Thesis Chapters by Basanta Bhetwal
The main objective of the study is to determine the factors that influence investment on bond market and whether the independent variables that consist of safety, return, liquidity, tax planning, pricing structure, governance and investor protection and regulation are significant in determining the investment on bond market by institutional investors.
The study used structured questionnaire techniques from 80 respondents which includes various investors from Kathmandu valley. The study is based on descriptive and analytical research design. This study used quantitative method for data collection for the purpose of analysis. Mainly structured questionnaire survey was used to generate responses based on which statistical analysis is done to test hypothesis. The sampling technique for the study followed convenience sampling. For the analysis of collected data, various statistical tests such as Correlation, Anova and Regression test were conducted with the help of statistical software SPSS.
There are few limitations for this study which are this study might not include all the variables, to study the factors that influence investment on bond market, respondents are from Kathmandu valley only and majority of respondents are other investors which may provide bias representation to the result.
The major findings of this research document are: there exits positive relationship between safety, return, tax planning, governance and investor protection, regulation and investment on bond market while negative relation between liquidity and pricing structure.
Hypothesis test also inferred that there is significant relationship between governance and liquidity with investment on bond market whereas safety, return, tax planning, pricing structure and regulation did not have a significant relationship with investment on bond market.
The study shows that low liquidity and governance present in the bond market is the main reason for low investment on bond market. The market size of bond should be bigger to have more liquidity on the market and attract more investors on the market. Similarly, proper trading mechanism should be established to ensure bonds are easily traded in the market which helps to increase liquidity of the bonds. Investors do not like to invest on bonds as there is large information asymmetry present and low degree of transparency present in the market so government should ensure that information is provided on timely basis on transparent manner.
The main objective of the study is to determine the factors that influence investment on bond market and whether the independent variables that consist of safety, return, liquidity, tax planning, pricing structure, governance and investor protection and regulation are significant in determining the investment on bond market by institutional investors.
The study used structured questionnaire techniques from 80 respondents which includes various investors from Kathmandu valley. The study is based on descriptive and analytical research design. This study used quantitative method for data collection for the purpose of analysis. Mainly structured questionnaire survey was used to generate responses based on which statistical analysis is done to test hypothesis. The sampling technique for the study followed convenience sampling. For the analysis of collected data, various statistical tests such as Correlation, Anova and Regression test were conducted with the help of statistical software SPSS.
There are few limitations for this study which are this study might not include all the variables, to study the factors that influence investment on bond market, respondents are from Kathmandu valley only and majority of respondents are other investors which may provide bias representation to the result.
The major findings of this research document are: there exits positive relationship between safety, return, tax planning, governance and investor protection, regulation and investment on bond market while negative relation between liquidity and pricing structure.
Hypothesis test also inferred that there is significant relationship between governance and liquidity with investment on bond market whereas safety, return, tax planning, pricing structure and regulation did not have a significant relationship with investment on bond market.
The study shows that low liquidity and governance present in the bond market is the main reason for low investment on bond market. The market size of bond should be bigger to have more liquidity on the market and attract more investors on the market. Similarly, proper trading mechanism should be established to ensure bonds are easily traded in the market which helps to increase liquidity of the bonds. Investors do not like to invest on bonds as there is large information asymmetry present and low degree of transparency present in the market so government should ensure that information is provided on timely basis on transparent manner.