Asian Journal of Economics, Finance and Management
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Cybersecurity Challenges and Technopublic Auditing: Safeguarding Digital Accountability Mechanisms in the Nigerian Public Institutions
No full textThis study investigates cybersecurity challenges in technopublic auditing with emphasis on safeguarding digital accountability mechanisms in Nigerian public institutions. It specifically examines how public sector auditing facilitates cybersecurity risk management, the extent to which financial auditing detects cybersecurity threats, and the role of IT auditing in countering and preventing such threats. The research employed a descriptive survey design, targeting a heterogeneous population of 205 staff drawn from the Office of the Accountant-General of the Federation (60), the Office of the Auditor-General of the Federation (75), and IT departments of the Federal Ministry of Finance (70). Using purposive and judgmental sampling techniques, 75 senior staff were selected for their expertise. Data were collected through a structured Likert-scale questionnaire and analyzed using regression techniques. Findings reveal that risk management exerts a strong and positive influence on technopublic auditing (β = 0.778, t = 5.457, p < 0.001), confirming its significance in enhancing digital accountability. Financial auditing produced a relatively high standardized coefficient (β = 0.924) but was statistically insignificant (p = 0.214), indicating a limited role in addressing cybersecurity-related risks. Conversely, IT auditing demonstrated a negative but statistically significant effect (β = –1.207, t = –3.967, p < 0.001), suggesting that overly rigid IT audit procedures constrain innovation and reduce overall audit efficiency. The constant term (p < 0.001) further confirms the presence of a baseline level of technopublic auditing independent of predictors. The study concludes that integrated audit methodologies, recalibrated auditing priorities and institutionalized cybersecurity frameworks are essential. The study recommends that embedding systematic risk assessments, strengthening IT and cybersecurity auditing, and aligning national audit practices with international digital governance standards to safeguard Nigeria’s digital accountability mechanisms. This study has the potential to enhance cybersecurity frameworks in public institutions by identifying vulnerabilities and informing more resilient defense strategies in strengthening cybersecurity frameworks in public institutions by providing data-driven insights and proactive defense strategies
The Effect of Access to Credit on Standard of Living among the Beneficiaries of Selected Groups: A Case of Iringa Municipality
No full textThis study examined the effect of access to credit on the standard of living among members of Tusaidiane Manispaa and Umoja Community-Based Savings Groups (CBSGs) in Iringa Municipality, Tanzania. Specifically, it analysed five credit access dimensions: credit service availability, ease of loan application, loan approval rate, loan interest rate, and collateral requirement. A mixed method approach was adopted, combining quantitative and qualitative technique. The study employed a descriptive cross-sectional design was adopted, using structured questionnaires administered to 120 respondents, complemented by qualitative insights from key informant interviews. Data were analysed using descriptive statistics, reliability tests, and multiple linear regression (MLR) through SPSS. The findings revealed that loan approval rate, loan interest rate, and collateral requirement had significant positive effects on members’ standard of living, while credit service availability and ease of loan application were statistically insignificant. The regression model explained 51.8% of the variation in standard of living, with diagnostic tests confirming the reliability of the model. These results suggest that strengthening approval mechanisms, adopting flexible but accountable collateral arrangements, and ensuring balanced interest rates are critical for improving household welfare through CBSGs in Tanzania
Corporate Compensations and Financial Performance of Multinational Firms in Nigeria
No full textCorporate compensation is a crucial issue affecting the financial performance of business organizations around the world. Even with these worldwide developments, there are still obstacles to overcome in order to guarantee that corporate remuneration results in long-term financial success. This study therefore examined the effect of corporate compensation on the financial performance of multinational firms in Nigeria. Specifically, the study assessed the effect of salaries and wages on the financial performance of multinational firms in Nigeria, investigated the effect of bonus payments on the financial performance of multinational firms in Nigeria, and assessed the influence of corporate benefits on the financial performance of multinational firms in Nigeria. The study covered nine years, from 2013 to 2022. The study population consists of 42 multinational firms listed on the Nigerian Exchange Group (NGX) as of 31st December 2023. The study sampled 20 multinational firms out of 42 multinational firms using purposive sampling techniques. The study used secondary data sourced from sampled firms. Ordinary Least regression analysis was employed to analyze the data. The study found that salaries and wages have a significant negative effect on the financial performance and corporate benefits negatively also influence financial performance, while bonus payments have a positive effect on financial performance. This study concludes that salaries and wages and corporate benefits exert a significant negative impact on financial performance, while bonus payments have a positive effect. Empirically, this study provides evidence that excessive fixed compensation may hinder financial sustainability, while performance-driven incentives may contribute positively to profitability and growth. The research recommends that the managers of multinational firms should reassess their corporate benefits policies to ensure that they provide value to employees while maintaining financial sustainability
Tax Policies and Financial Performance of Selected Registered Manufacturing Firms in Kenya
No full textGlobally, tax regulations continue to shape the fiscal and operational outcomes of manufacturing enterprises. In the United States, corporate tax reforms implemented in 2017 reduced rates from 35% to 21%, contributing to a 12% rise in manufacturing firms’ net earnings within two years. The financial performance of manufacturing firms in Kenya has been constrained by a complex tax policy environment characterised by high corporate tax rates, cumbersome VAT compliance, inconsistent tax incentives, and heavy customs duties. This study examined the effects of tax policies on the financial performance of registered manufacturing firms, focusing on corporate income tax rates, VAT policies, tax incentives, and customs and excise duties. Anchored on the Modigliani and Miller Theory of Corporate Taxation, the Laffer Curve Theory, and Harberger’s Excess Burden of Taxation Theory, the study adopted a descriptive research design targeting 100 firms across Nairobi, Mombasa, Kisumu, and Nakuru. Stratified random sampling and Yamane’s (1967) formula ensured representative and statistically sound data collection. Secondary data were obtained from audited financial statements, KRA, and KAM reports covering the period 2020–2024. Data were analysed using descriptive and inferential statistics, including multiple regression analysis, with diagnostic tests ensuring model robustness. Findings revealed that VAT, tax incentives, and customs and excise duties positively and significantly influenced financial performance, while corporate income tax rates had a positive but insignificant effect. The Corporate Income Tax Rate (CITR) averaged 2.7%, significantly below the statutory 30%, suggesting the impact of tax incentives, deductions, or compliance challenges. Value Added Tax (VAT) averaged 15.14 with limited variability, implying a relatively uniform and high VAT burden across firms. The Heteroscedasticity Test yielded a significance value of p = 0.000 (p < 0.05), revealing the presence of heteroscedasticity. Results of correlation analysis showed that the corporate income tax rate (CITR) had a strong positive correlation with return on assets (ROA) (ρ = 0.928, p < 0.01). The study concluded that firms should strategically manage tax burdens, strengthen VAT compliance to improve liquidity, and maximise tax incentives for growth. Policymakers are urged to maintain predictable tax regimes, streamline VAT systems, enhance transparency in incentives, and formulate excise duty policies that promote industrial competitiveness
Cooperative Farming for Agricultural Produce Export in the Southeast Region of Nigeria: Problems and Prospects
No full textThis study explores the readiness and willingness of farmers’ cooperative societies to internationalize their offerings by engaging in agricultural produce export and to identify the factors driving these behavioural intents. Being a quantitative survey involving 425 members of vibrant farmers’ cooperative societies in the Southeast region of Nigeria, a structured questionnaire based on the theory of planned behaviour was deployed to generate relevant primary data. Data generation spanned through the period of February 2022 to January 2023.The data were analyzed using the SmartPLS structural equation modeling. Findings indicate that access to finance, facilities and insecurity stand as the major challenge faced by the respondents in internationalization of their offering, while subjective norms and government policies are the major drivers of intent to engage in internationalization. Government policies, access to information, management of cooperatives, and subjective norms are the key positive drivers of intention to export. The study provides, practical and theoretical insights
Inter-Relationship between Corporate Governance and the Financial Performance of Commercial Banks in Kenya
No full textThe objective of this study was to examine the relationship between corporate governance and the financial performance of commercial banks in Kenya. Specifically, it explored how ownership structure, board diversity, audit quality, board transparency, and institutional size influence financial performance. The research was anchored on Agency Theory, Lending Credibility Theory, Stakeholder Theory, and Resource Dependency Theory. A correlational research design was adopted, targeting 38 registered commercial banks in Kenya. Secondary data covering governance variables and financial performance indicators were collected and analyzed using descriptive statistics and regression analysis in STATA version 14. Diagnostic tests were conducted to ensure model reliability and validity. The findings revealed that ownership structure had a significant negative effect on financial performance, suggesting that concentrated ownership may reduce operational efficiency. Board diversity, audit quality, and institutional size exhibited significant positive effects, highlighting their importance in improving bank outcomes. Board transparency, however, had a small negative effect on performance. Additionally, institutional size significantly moderated the relationship between governance structures and financial results, indicating that the effectiveness of governance practices is influenced by the scale of the bank. The study concludes that robust corporate governance, aligned with institutional size, is essential for enhancing the financial performance of commercial banks. It recommends that banks improve board diversity to leverage diverse perspectives, strengthen audit functions to ensure accountability, and strategically manage ownership and transparency structures. These measures are crucial for promoting resilience, competitiveness, and long-term sustainability in Kenya’s banking sector
Operational Internal Controls and Financial Performance Efficiency in Selected Non-Governmental Organizations: Evidence from Nairobi City County, Kenya
No full textOperational internal control systems are vital in enhancing financial performance efficiency within the Non-Governmental Organization (NGO) sector, where accountability, transparency, and optimal resource utilization are paramount. In Kenya, NGOs continue to encounter persistent challenges, including financial mismanagement, weak budgetary control, delayed reporting, and inadequate donor fund accountability often stemming from deficient or poorly implemented oversight mechanisms. This study examined the influence of functional internal controls—preventive, detective, directive, and managerial—on financial performance efficiency in NGOs operating within Nairobi City County. The research investigated how mechanisms such as segregation of duties, authorization protocols, internal audits, financial guidelines, and budgetary procedures impact key performance measures, including program effectiveness, resource mobilization, overhead expenditure, budget deviation, and beneficiary expense efficiency. Guided by Agency Theory, Stewardship Theory, Contingency Theory, and the COSO Framework, the study adopted a descriptive survey design targeting fiscal administration staff in 263 NGOs. A stratified random sample of 157 respondents was selected. Data, collected through standardized questionnaires, were analyzed using descriptive statistics and multiple linear regression. Reliability was confirmed via Cronbach’s Alpha, and validity through expert review, factor analysis, KMO, and Bartlett’s tests. Multicollinearity was assessed using Variance Inflation Factors. Findings revealed that preventive controls exerted the strongest positive effect on financial performance efficiency (r = 0.691, B = 0.521, p < 0.001), followed by managerial controls (r = 0.772, B = 0.374, p < 0.001). Directive (r = 0.667, B = 0.439) and detective controls (r = 0.352, B = 0.423) also demonstrated significant positive impacts. The model explained 64.45% of the performance variation. The study concludes that robust preventive controls, complemented by strengthened detective, directive, and managerial measures, are essential for fostering transparency, compliance, and strategic oversight. Practically, the findings provide actionable insights for NGO management and policymakers by underscoring the need to institutionalize preventive mechanisms, reinforce audit and training frameworks, and align financial oversight with donor accountability requirements to enhance governance and sustainabilit
Internal Controls and Operational Efficiency of Human Rights Organizations in Nairobi City County, Kenya
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The study aimed to determine the connection between internal controls and operational efficiency of Human Rights Organizations in Nairobi, Kenya. Specifically, the study sought to: evaluate the impact of reporting controls on the accuracy and timeliness of financial information, assess the level of compliance with local, international and internal regulations and policies, assess the effectiveness of communication and information controls, examine the effectiveness of monitoring and evaluation controls in ensuring optimum implementation and ascertain the moderating effect of Board resolutions on the relationship between internal controls and operational efficiency of Human Rights Organizations in Nairobi, Kenya. The following theories guided the study: Agency theory; Stewardship theory as well as Contingency theory. The researcher utilized a descriptive research design on a sample survey of 101 Human Rights Organizations operating in Nairobi, Kenya during the 5-years period covering 2015-2019. Both primary and secondary data were used. Questionnaires were utilized to collect primary data while secondary data was collected through a desk review of the Organizations’ annual reports covering the period under study. That financial reporting controls were generally viewed positively, particularly for the accuracy and timeliness of reports. Secondly, compliance controls emerged as a critical factor with strong correlations to other governance mechanisms, especially board resolutions. Thirdly, communication information controls showed a significant, but negative, impact on operational efficiency, indicating that while communication systems are essential for transparency and stakeholder engagement, inefficiencies in these systems can hinder performance. The M&E controls were highly rated, particularly for the measurement of outcomes and the frequency of monitoring activities. Board resolutions stood out as a critical governance mechanism with strong positive ratings for providing oversight and aligning with organizational vision
Impact of Working Capital Management Practices on Firm Value: Evidence from Manufacturing Companies Listed on the Nairobi Securities Exchange, Kenya
No full textFirm value is a critical determinant of investor perceptions and capital allocation decisions. Despite its importance, manufacturing firms listed on the Nairobi Securities Exchange (NSE) have experienced declining market valuations, reflected in volatile share returns. This study investigates the impact of working capital management practices specifically trade receivables, trade payables, and inventory levels on firm value, addressing a gap in empirical evidence from emerging markets. Grounded in transaction theory, the cash conversion cycle, and shareholder wealth theory, the study adopted an explanatory research design. It focused on nine listed manufacturing firms, with purposive sampling yielding seven consistently listed between 2014 and 2023. Secondary panel data were analyzed using descriptive statistics, correlation, and regression analysis, supported by diagnostic tests including distribution checks, multicollinearity, serial correlation, and the Hausman specification test. Results indicate that efficient accounts receivable management, reflected in shorter collection periods, strengthens investor confidence by signaling effective credit policies. Strategic accounts payable management enhances liquidity but requires careful balancing to preserve supplier trust. Lean inventory practices emerged as a key driver of firm value, reducing holding costs and improving operational efficiency. The study contributes to literature by providing context-specific evidence from Kenya’s capital market, highlighting how working capital practices influence firm value in developing economies. It extends theory by linking working capital decisions to shareholder wealth maximization and market-based valuation outcomes. The findings suggest that firms should adopt integrated working capital frameworks that align receivable, payable, and inventory management. Practical measures include comprehensive credit risk assessment, transparent supplier partnerships, and AI-driven inventory forecasting. These strategies not only enhance operational efficiency but also strengthen investor confidence and long-term firm value
The Impact of Monitoring and Evaluation Systems on the Implementation of Strategic Plans in Public Corporations in Nairobi, Kenya
No full textThe Government of Kenya has acknowledged the importance of state corporations for development since the country's independence to accelerate social and economic advancement, address regional economic imbalances, and increase the economic participation of Kenyans. The primary aim of the investigation is to explore the effects of monitoring and evaluation systems on strategic plan implementation within state corporations in Nairobi City County, Kenya. Hence, the functioning of Kenyan State Corporations is crucial for the nation's macro- and microeconomic development. To fulfil the Public Service's role in achieving Vision 2030, the Kenyan government created a public sector transformation strategy along with other strategic plans. This investigation sought to determine the effect of monitoring and evaluation systems on the implementation of the strategic plan within state corporations in Nairobi City County, Kenya. The investigation was guided by the theory of change, stakeholder, and systems theory. A descriptive study design guided the suggested assessment. The target population for the present investigation was the 248 state corporations within Nairobi City County, Kenya, as of 2023. The units of analysis were the state corporations, whereas the units of observation were the heads of the state corporations in the 248 state corporations. Employing a stratified random sampling approach, responses were generated randomly from amongst the heads of the corporations totalling one hundred and fifty-three 154 respondents. Primary data was gathered using the drop and pick method, and the instrument that was utilised was structured questionnaires. Findings revealed that data collection efficiency has an inverse and insignificant effect on strategic plan implementation. The coefficient for reporting, however, is 0.218, and its corresponding p-value is 0.027. The result depicts a positive and significant impact on strategy execution. Therefore, an increase in reporting by 1% would increase strategy execution by 0.218%. The coefficient for the feedback mechanism is 0.428, and its corresponding p-value is 0.000. The outcome also noted that data reporting demonstrated a positive and significant effect on strategic plan implementation. The feedback mechanism had a significant positive effect on strategic plan implementation within state corporations in Nairobi City County, Kenya. The study recommends that the state-owned enterprises need to put in place standardised, institutionalised, timely, and open procedures for reporting data. These procedures should provide for the availability in real-time of performance data for all relevant managerial levels. The findings showed that feedback has a strong and significant positive effect on strategy execution success, with the focus placed on the fact that the feedback loop facilitates learning, adaptive management, and continuous improvement. In conclusion, the study proves that feedback mechanisms are essential in increasing the efficiency and responsiveness of the strategic plans of state corporations