A Series of CoxAg1-x nanostructured granular films have been prepared by io
n beam sputtering and annealed at 100, 250, 400, 500 degrees C. The optical
constants, the complex dielectric function and magneto-optical Kerr parame
ters were measured at room temperature. For the samples having low Co compo
sitions, the strong Kerr effect enhancement is observed around the Ag plasm
a edge. With an increase in annealing temperature, the resonance-like peaks
appear in the Kerr rotation, and the peak positions are shifted toward the
low photon energy region. From the analysis of the numerical calculations,
it is concluded that the magneto-optical Kerr effect enhancement (MOKE) is
due to the presence of the steep plasma edge.