Asian Journal of Economics, Finance and Management
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Working Capital Management and Financial Sustainability of Micro and Small Cleaning Enterprises in Kakamega County, Kenya
No full textFinancial sustainability of micro and small businesses is a pressing issue with significant implications for local economies and employment. Profit margins in the cleaning sector remain low, averaging 10–15% due to high competition and low pricing strategies. This study examined the effect of working capital management on the financial sustainability of micro and small cleaning enterprises in Kakamega County, Kenya, focusing on cash flow, credit, and inventory management. The study was anchored on the Resource-Based View, Keynesian Liquidity Preference, Credit Risk, and Economic Order Quantity theories. Using an explanatory research design, data were collected from 243 registered enterprises through structured questionnaires, combining qualitative and quantitative approaches. Descriptive statistics and inferential analysis, including correlation and multiple regression at the 5% significance level (p<0.05), were applied. The findings revealed that cash flow, accounts receivable, accounts payable, and inventory management significantly influenced financial sustainability. Effective cash flow management enabled enterprises to meet operational costs and make informed investment decisions. Proper management of receivables sustained cash inflows, while prudent handling of payables strengthened relationships and minimized costs. Efficient inventory management reduced risks of overstocking or stockouts. These results provide actionable insights for managers of small cleaning enterprises and policymakers seeking to enhance the sector’s financial resilience
Natural Gas Consumption in Africa: The Connection Between Gas, Electricity, Residential, Industrial Consumptions and Economic Growth
Get PDFThis research examines the connection between Residential and Industrial Natural Gas Consumption, Electricity Consumption from Gas, and economic development in Nigeria, Egypt, Algeria, and Equatorial Guinea. Secondary data sources obtained from the Nigerian Bureau of Statistics, BP statistical bulletin, Index Mundi, and World Data Atlas were utilized for this study. The analysis employs a range of econometric techniques such as descriptive statistics, unit root tests, cointegration tests, and ARDL-ECM to examine the impact of these factors on Africa's economic growth. The findings indicate that overall natural gas consumption has a minimal and statistically insignificant impact on GDP. Similarly, electricity consumption shows a positive but insignificant correlation with GDP in the region. Conversely, industrial gas consumption demonstrates a negative and significant relationship with GDP, while residential gas consumption exhibits a strong positive correlation with GDP. The study concludes that gas consumption in industrial and residential sectors significantly affects economic growth in the selected African countries. However, total natural gas consumption and gas used for electricity generation do not significantly influence economic growth in these nations. To maximize the potential of natural gas, this study recommends that the leadership of Nigeria, Egypt, Algeria, and Equatorial Guinea should implement automation for the production, distribution, and consumption of natural gas. This will ensure accurate accountability and proper management of the revenue generated from its sales. To promote electricity generation, distribution, and transmission, they should contemplate subsidizing these costs for their citizens. This will incentivize the production of goods and services, thereby revitalizing economic growth. For increased residential consumption, they should continue to supply more natural gas for residential purposes given that it significantly promotes their economic growth. For natural gas consumed for industrial purposes, the governments of the selected African countries should consider reducing the amount of gas supplied to them since it substantially retards economic growth
Strategic Alliances and Performance of Commercial State-owned Enterprises in Nairobi City County, Kenya
Get PDFMost commercial State-Owned Enterprises (SOEs) in Nairobi, Kenya, have been underperforming, often relying on financial bailouts. This study investigated the impact of strategic alliances on their performance, focusing on resource sharing, risk sharing, regulatory compliance, and cost-efficiency-based alliances. Grounded in resource reliance, resource-based view, and public interest theories, the study employed a descriptive survey design, targeting all 37 commercial SOEs in Nairobi. Using purposive sampling, one senior manager from each SOE participated, and structured questionnaires were used for data collection. Data analysis involved descriptive statistics (mean, standard deviation, and coefficient of variation) and inferential statistics (Pearson correlation and multivariate regression). Results indicated that strategic alliances significantly influenced SOE performance, explaining 88.7% of performance variation. Resource-sharing alliances had a positive and significant effect, while risk-sharing alliances also strongly predicted performance (β2= .369, p=.005). Regulatory compliance-based alliances had the highest effect, and cost-efficiency-based alliances significantly enhanced performance (β4= .454, p=.000). The F-calculated value (63.043) exceeded the critical value (2.69), confirming the strong relationship between strategic alliances and SOE performance. The study concluded that forming strategic alliances is crucial for improving the financial and operational sustainability of commercial SOEs in Kenya
Employees' Motivation and Its Impact on Public Servants' Productivity in Nnamdi Azikiwe University Teaching Hospital, Nnewi, Anambra State, Nigeria
Get PDFMotivation plays a crucial role in enhancing employee productivity, which directly influences the success of any organization, whether public or private. However, public servant productivity in Nigeria has faced significant challenges, often criticised for being suboptimal amidst the country's prevailing economic difficulties. This study examines the impact of motivation on the productivity of public servants with a focus on Nnamdi Azikiwe University Teaching Hospital, Nnewi, Anambra State, Nigeria. Grounded in Maslow's Hierarchy of Needs and Herzberg's Two-Factor Theory, the research examines how motivational factors influence employee performance and identifies strategies to enhance productivity. A descriptive research design was employed, involving 100 healthcare professionals from the hospital's general outpatient department. Data were collected using a structured questionnaire with a reliability coefficient of r=0.82. The findings reveal that motivation significantly improves employee productivity by encouraging greater effort and commitment. Effective motivational strategies identified include educational sponsorship, employee benefits, fair wages, and recognition through praise and rewards. In conclusion, the study demonstrates that employee motivation is a critical factor influencing organizational productivity at Nnamdi Azikiwe University Teaching Hospital, Nnewi, Anambra State, Nigeria. The study recommends implementing a combination of intrinsic and extrinsic motivational strategies tailored to the unique needs of employees. These include prompt payment of salary and increment, fair wages, education sponsorship for its employees, career advancement opportunities, suitable working conditions, providing house allowance and other fringe benefits like overtime, uniform allowance, financial incentives, awards and gratuities etc. By adopting these measures, public sector organizations can achieve sustained productivity and service delivery improvements
Analysing the Impact of Global Market Indicators on Nifty 50: Evidence from Quantile Regression
Get PDFThis study inspects how selected five global market indicator such as the Dow Jones Industrial Average, WTI crude oil prices, gold prices, the U.S. 10-year Treasury yield, and the Dollar Index influence India’s Nifty 50 index across the return distribution. Using 1,512 weekly observations spanning November 1995 to October 2024, we employ quantile regression to capture heterogeneous effects across nine quantiles (τ = 0.1 to 0.9), addressing issues of non-normality and heteroscedasticity that traditional OLS methods fail to resolve. The Dow Jones displays a strong and statistically significant influence on Nifty 50 returns across all quantiles, endorsing global equity interdependence. Gold and U.S. bond yields have varying degrees of impact across the quantile spectrum, while the Dollar Index exerts mixed, mostly negative effects. Notably, WTI crude oil displays no statistically significant impact across any quantile. By offering a long-horizon, distribution-aware analysis, this research enhances understanding of how global shocks transmit to Indian equity markets. The findings provide insights for investors managing exposure in emerging markets and for policymakers aiming to strengthen financial market resilience against external shocks
Tax Revenue and Economic Growth in Nigeria: A Theoretical and Empirical Review
Get PDFThe main objective of this study is to examine the effect of tax revenue on economic growth in Nigeria. This study covers a period of 27 years (1995-2022). The reason for choosing this period is that it depicted the period in which value added tax (VAT) one of components indirect was introduced by the Nigerian government. Vector error correction modelwas employed to ascertain the relationship between dependent and independent variables. The results showed that first; there is a negative significant relationship between company income tax (CIT) and economic growth in Nigeria in both long and short run. The result also revealed that there is a significant negative relationship between custom excise duty and economic growth. On the contrary the results revealed that there is a positive and significant relationship between value added tax (VAT) and economic growth in both long run and short run.Based on the result the study recommends, government should close every leakage that may lead to drainage of taxes
Supplier Relationship Management and Supply Chain Performance of Flour Milling Companies in Nairobi County, Kenya
Get PDFIn Kenya, where agriculture forms the backbone of the economy, the production of flour has been steadily increasing, driven by the revenue generated from milling activities converting harvested grains into flour. However, challenges within the flour milling industry have emerged, leading to the closure of subsidiary firms like Mombasa maize and Kitui flour mills due to issues such as insufficient suppliers, competition, and subpar supply chain performance. The inefficiencies extend to the Nairobi context, where outdated supply chain management practices and technological limitations, coupled with weak institutional frameworks, lack of innovation, inadequate infrastructure, and skills shortages, have further hindered the performance of flour milling companies. This study investigates the effects of supplier relationship management on the supply chain performance of flour milling companies in Nairobi County, Kenya. The research focuses on four key supplier relationship management practices: trust-based relationship management, supplier collaboration, information sharing, and supplier quality. Using a descriptive research design, data were collected from ninety-six 96 employees across sixteen 16 flour milling companies through structured questionnaires. The findings reveal that information sharing has a significant positive effect on supply chain performance, while trust-based relationship management, supplier collaboration, and supplier quality exhibit positive but statistically insignificant effects. The study conclude that effective information sharing is critical for enhancing supply chain performance, and it recommends that flour milling companies adopt performance-based contracts, improve transparency, and enhance supplier evaluation processes to optimize their supply chain operations
Firm-level Determinants of Deferred Taxation in Manufacturing Sector of Sub-Saharan Africa
Get PDFThe importance of investigating deferred taxation in Sub-Saharan Africa (SSA) lies in the region’s rapid economic transition, combined with weak institutional enforcement and highly heterogeneous regulatory frameworks. Manufacturing firms are central to industrial development, and their financial statements often feature deferred tax components that can mask or reveal important information about future tax obligations and asset recoverability.
This study investigates the determinants of deferred taxation among Sub-Saharan Africa (SSA)-listed manufacturing firms, analysing deferred tax assets (DT1), liabilities (DT2), and net differences (DT3). The research covers an eleven-year period (2012–2022). Secondary data were extracted from audited financial statements of listed manufacturing firms, sourced from AfricanFinancials, Proshare, MachameRatios DataPC, and official stock exchange websites. The final sample includes 186 manufacturing firms from 14 SSA countries, yielding 1,800 firm-year observations. The study employs Tobit regression to address data censoring and Ordinary Least Squares (OLS) for robustness checks. Key independent variables include firm size, leverage, board characteristics, asset tangibility, and profitability. The results reveal that firm size, leverage, and asset tangibility significantly shape deferred tax outcomes. Larger firms accumulate more deferred tax assets (DT1: 0.257*) but exhibit higher net liabilities (DT3: -0.913*), reflecting scale-driven tax strategies. Leverage consistently amplifies deferred tax positions (DT1: 0.017; DT2: 0.046), aligning with temporary book-tax differences from debt structures. Asset tangibility increases liabilities (DT2: 0.157*) while reducing net deferred taxes (DT3: -0.127*), underscoring depreciation-driven tax exposures. Profitability reduces assets (DT1: -0.070*) but elevates liabilities (DT2: 0.124), signalling strategic deferral practices. Governance variables, such as board independence, show limited influence except on net positions (DT3: -0.079*). Theoretical insights link findings to Agency Theory (governance oversight), Signalling Theory (fiscal narratives), and Positive Accounting Theory (efficiency-driven strategies). Diagnostic tests confirm robustness. The study advocates for enhanced tax transparency mandates, standardised regional reporting frameworks, and proactive firm-level tax compliance units. Policymakers are urged to implement anti-abuse rules targeting aggressive deferral, particularly in leveraged firms. By bridging empirical and theoretical insights, this study contributes to understanding deferred taxation in emerging markets, offering actionable pathways for sustainable fiscal governance in SSA. This study identifies firm size, leverage, asset tangibility, and profitability as pivotal determinants of deferred taxation among Sub-Saharan Africa (SSA)-listed manufacturing firms, with governance mechanisms exerting context-dependent influence
Information Technology Investment and Tax Compliance in Nigerian Informal Sector
Get PDFIn an era marked by increasing globalization and heightened fiscal scrutiny, tax compliance has emerged as a critical area of concern for governments, businesses, and individuals worldwide. This study assessed the effect of information technology investment on tax compliance of Nigerian informal sector in Ekiti State. This study adopted survey research and population of the study comprised 1,440,771 registered MSMEs in Ekiti State as of 31st December 2023 (SMEDAN,2023). A sample size of 400 respondents was selected using Taro Yamane’s formula. Data was collected through a well-structured questionnaire and analysed with descriptive and inferential analysis. The empirical analysis showed that electronic tax platform investment had positive and significant effect on tax compliance among the Nigerian informal sector. On the other hand, computer software investment had positive and insignificant effect on tax compliance. Finally, the study concludes that investment in digital tax platforms have contributed to diminishing tax processing time and its user-friendly nature has improved compliance of taxpayers in the informal sector of Ekiti state. Also, when considering form of capital investment that can improve tax compliance, computer software investment is not significant. Based on the study's conclusions and findings, it is recommended that business owners should not embrace investment in computer software investment for tax purpose because it is inadequate and the cost can discourage tax compliance, and taxpayers should be encouraged to improve on their computer literacy so they can easily file their taxes and submit their files with ease and convenience in order to boost their tax compliance
Evaluating the Role of ERP, Cloud, and Blockchain Systems in Improving Financial Efficiency of NGOs in Kenya
No full textThis study explored the impact of technological financial systems including ERP, cloud accounting, and blockchain on the financial efficiency of humanitarian organizations in Kenya. Grounded in the Technology Acceptance Model (TAM), Resource-Based View (RBV), and Institutional Theory, it examined how these digital tools influence budgeting, reporting, and internal control within the nonprofit sector. A mixed-methods cross-sectional design was adopted, combining surveys and interviews with 120 participants from finance, IT, procurement, and operations departments. Data was analyzed using SPSS, with results presented through tables and graphical summaries. The findings revealed mixed perceptions of these technologies: while adoption significantly enhanced the accuracy, timeliness, and transparency of financial reporting, challenges emerged around system integration, inconsistent user acceptance, security concerns, and high implementation costs. Not all departments experienced equal benefits, and cost-effectiveness remained a concern. The study concluded that the effectiveness of digital financial systems depends on organizational culture, institutional support, and user competence. Recommendations included tailored implementation, enhanced staff training, better system integration, and user-centered design of financial tools. The research was limited to Kenyan NGOs, which may affect the generalizability of the findings to other contexts. Nonetheless, the results highlight the potential of technology to foster transparency and accountability in humanitarian financial management, with future studies encouraged to assess long-term impacts and effectiveness in areas such as procurement and project monitoring