Asian Journal of Economics, Finance and Management
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Strategic Implementation and Financial Performance of Deposit Taking Savings and Credit Cooperative Societies in Nairobi City, Kenya
No full textSavings and Credit Cooperative Societies (SACCOs) stand as key actors within a country's economic setup, mainly through their supply of savings and credit facilities. Yet, the financial performance of SACCOs in Kenya has been on a slide with regard to Return on Assets through time. ROA stood at 14.32 percent in 2016 and declined to 11.19 percent in 2020. Therefore, the study evaluated strategic implementation effect on deposit-taking SACCO performance in Nairobi City County. A descriptive survey approach was preferred. The study population included all the 47 deposit-taking SACCOs found in Nairobi City County. A census was then done owing to the number of that target population and primary data was collected with the use of questionnaires. Descriptive and inferential statistics were used to analyze the variables, which were then presented in table formats. The findings demonstrated that strategy implementation positively and significantly impacts financial performance. The study recommends that SACCOs should implement regular workshops or strategy sessions where findings from environmental scans are discussed and directly linked to strategic planning initiatives
Impact of Job Characteristics and Social-demographic Factors on Employee Pay and Retention: An Empirical Study at Five-Star Hotels in Nairobi, Kenya
No full textGlobally, the high employee turnover rates experienced in the hospitality industry are often due to the unfavourable nature of the jobs, which are characterised by long working hours, low wages, and limited opportunities for career advancement, which are worsened by socio-demographic factors that moderate the individual reaction to the situation. As a result of this, the study examined how job characteristics and socio-demographic factors influence employee pay and retention in five-star hotels in Nairobi County, Kenya. Adopting a cross-sectional design as the research design, information was gathered from 112 employees of eight (8) registered five-star hotels using a structured questionnaire. The study was descriptively analysed and inferentially evaluated utilising General Linear Modelling (GLM) Univariate ANOVA. Findings disclosed a significant predictive model for employee pay, with job and socio-demographic factors accounting for up to 70.0% changes in the pay. Within the model, educational level was noted as the significant driver of pay differentials (ηp2=.220, F=12.707, P=.000), which was followed by the job position held (ηp2=.155, F=8.253, P=.001) as well as department (ηp2=.151, F=3.210, P=.010). However, the characteristics established explanatory power that moderates employee retention, accounting for up to 32.4% of the changes. For retention, department was noted as the key driver (ηp2=.213, F=4.722, P=.001), accompanied by average working hours (ηp2=.075, F=3.518,P=.034). In comparison, the outcomes affirmed that pay is significantly higher for employees with higher educational qualifications, alongside those who are supervisors, hence aligning with the position of the Human Capital Theory (HCT). Also, the risk of retention is significantly connected to the operational departments, specifically, Food and Beverage Service, and long working hours. The study emphasized that the retention of employees is chiefly driven by the operational context in question, with department and the average working hours as the key factors to labour stability, whereas human capital attributes proved insignificant. The study recommends that the management should actively reinforce human resource policies linking pay and human capital development. As such, the management ought to constantly encourage and financially pay higher educational achievement and professional experience for all employees to maintain the meritocratic foundation of the pay system
Prudential Regulations and Profitability of Microfinance Banks in Kenya
Get PDFMicrofinance banks significantly add to the reduction of Kenya’s youth unemployment and poverty, which boosts the nation's economic development. Despite the implementation of prudential regulations aimed at enhancing financial stability and performance, many microfinance banks continue to struggle, as evidenced by a record decline in profitability over recent years. Therefore, this investigation examined prudential regulations effect on the Kenyan microfinance banks’ profitability. The effect of capital regulation on Kenyan microfinance banks’ profitability, liquidity regulation effect on Kenyan microfinance banks’ profitability and credit regulation effect on Kenyan microfinance banks’ profitability were examined. The study utilized fourteen microfinance finance banks which served as the target population. Census sampling was employed owing to the few microfinance banks in Kenya; hence, all the fourteen microfinance banks were utilized. Descriptive, correlation and panel regression technique was used as methods of data analysis. Findings uncovered that liquidity regulation insignificantly and positively affect the banks’ profitability; credit regulation possess inverse and insignificant effect on the banks profitability; capital regulation disclose a positive and significant effect on the banks profitability. The survey recommends that central bank should assess the current liquidity requirements and consider streamlining them to reduce unnecessary burdens on microfinance banks. This can involve revisiting reserve requirements, liquidity ratios, or other liquidity-related regulations to strike a balance between prudential safeguards and fostering profitability
Transformational Leadership and Operational Efficiency in Industry 4.0: The Mediating Role of Digitalization through the Lens of Dynamic Capabilities Theory
Get PDFThe purpose of this study is to investigate the effect of transformational leadership (TL) on operational efficiency (OE) with the mediating role of digitalization in Industry 4.0 (manufacturing firms). This research fills the gap by combining the dynamic capabilities theory (DCT) to describe how leadership can help in adopting the digital transformation and improve efficiency. This research used a quantitative approach and primary data, which were collected via structured closed-ended questionnaires. 400 questionnaires were distributed using convenience-based sampling among employees of manufacturing firms, and 331 complete responses were received. The current study used a deductive approach with the positivist philosophy, and the Partial Least Squares Structural Equation Modeling (PLS-SEM) technique was used for analysis using smart PLS 4. The findings of the study reveal that TL has a significant positive effect on OE. Digitalization fully mediates the relationship between TL and OE. The findings signify the impact of the leadership in assisting the technological advancements to optimize the processes and increase productivity. The research findings help owners and policymakers to train the leaders for digital technology adoption to increase the OE of firms. The government should support digital transformation by providing incentives and training. This offers manufacturing industries, new approaches in how leadership and technology can drive efficiency
Assessing the Role of Digital Evidence in the Prosecution of Financial Fraud Cases in Nigeria
Get PDFThis study explores how digital evidence functions within financial fraud prosecutions in Nigeria. In particular, it looks at its use, issues of admissibility and integrity, and its influence on conviction rates. Using a cross-sectional survey research design, primary data were obtained using questionnaires administered to 50 legal practitioners, one from each legal firm in Ondo State, Nigeria, through purposive sampling. The analysis of the data was done by using descriptive and inferential statistics, applying Eviews version 9. The results indicate that when digital evidence is a factor in cases, prosecution is more likely to be successful (coefficient =.505; p=.0021), and therefore successful prosecution is correlated with an increased prevalence of digital evidence. On the other hand, the legal admissibility of digital evidence supports a negligible and non-significant result (coefficient = -.003; p =.9842), indicating that procedural challenges are not a significant obstacle to prosecuting successfully after digital evidence has been accepted. But, conviction rates were positively and significantly correlated with the ability to obtain a successful prosecution (0.547; p =.0003). Therefore, the findings of the study show that digital evidence has significant value in the prosecution of financial fraud and is not to be considered from the standpoint of issues related to admissibility and strategy. The study recommended that there is a need for Nigeria’s legal system to invest in digital forensics tools and training, standardization of evidentiary procedures, as well as continuous legal training for lawyers in order to better equip them in the utilization of digital evidence
Sustainable Supply Chain Management in Southeast Asian Manufacturing: Practices, Barriers, and Opportunities
Get PDFSustainable supply chain management (SSCM) is increasingly vital for aligning manufacturing with global sustainability goals, yet its adoption in Southeast Asia’s dynamic manufacturing sector remains underexplored. This study examines SSCM practices in three ASEAN countries—Vietnam (electronics), Thailand (textiles), and Malaysia (automotive)—using a qualitative case study approach. Drawing on interviews with supply chain managers and secondary data, the research identifies key practices, including green logistics, circular economy principles, and renewable energy integration, alongside barriers such as high costs, regulatory fragmentation, and global supply chain disruptions. Opportunities include regional collaboration, rising consumer demand for sustainable products, and digital technologies like blockchain. The findings highlight industry-specific and regional nuances, contributing to the SSCM literature by addressing a gap in ASEAN-focused research. The study offers practical implications for firms to adopt cost-effective sustainability practices and for policymakers to harmonize regional regulations, supporting the United Nations’ Sustainable Development Goals (SDGs 8, 12, and 13). By providing a Southeast Asian perspective, this research advances the global discourse on sustainable industrial growth in emerging economies
Sentiment Index and Stock Return in the Nigerian Capital Market
No full textInvestor sentiment is a critical factor that cannot be directly measured, it depicts how investors react to emotions, fear, gains, and losses in the capital market. Investors' sentiment has varying impacts on all market participants, both positively and negatively. This study examines interplay of sentiment index and stock return in Nigerian capital market covering period 30/04/2019 to 02/06/2025, using daily secondary time series data with focus on constructing a tailored sentiment index, identifying sentiment indicators that contribute most to sentiment index and interplay between sentiment index and stock return in Nigerian capital market. The sentiment index is constructed using principal component analysis (PCA) with sentiment indicators: trading volume, exchange rate, and interest rate. The study adopts ex-post facto research design using Principal component analysis (PCA) and ordinary least regression (OLS) estimation techniques to analyze dynamic interactions between investor sentiment index and stock returns in Nigerian capital market. The study findings revealed sentiment index is not statistically significant and cannot influence stock returns, while trading volume and exchange rate contribute most to sentiment index in Nigerian capital market. This implies that investors mirror market trading activities in stock selection for trading which promote sentiment driven trading in the market. Also, findings revealed Volatility index (VIX) is statistically significant and good predictor of stock return. this implies, stock price movement is a reflection of how investors respond to market activities. Hence, regulatory authorities should implement robust policies in the area of exchange rate and volatility management as a critical tool for capital market performance for both retail, institutional, and foreign portfolio investors
The Impact of Macroeconomic Variables on Bank Profitability: Empirical Evidence from Selected Private Commercial Banks in Bangladesh
No full textPurpose: The profitability of banks is closely tied to macroeconomic dynamics, and this linkage is particularly critical in emerging economies like Bangladesh where financial institutions face persistent volatility. While prior studies have examined macroeconomic influences on banking performance, limited research has focused specifically on private commercial banks, which dominate the Bangladeshi banking sector. This study addresses this gap by investigating the effects of exchange rates, interest rates, and inflation on their financial performance.
Design/Methodology/Approach: Secondary data were collected from the World Bank database and the financial statements of 20 Bangladeshi private commercial banks. A descriptive research design was employed, while correlation analysis was used to explore associations between return on assets (ROA), return on equity (ROE), and selected macroeconomic variables. A multiple linear regression model further assessed the random effects of the independent variables on bank performance.
Findings: The results reveal a strong negative relationship between the foreign exchange rate and bank profitability, while inflation demonstrates a positive impact. Moreover, interest rates were found to positively influence ROA but negatively affect ROE. The model’s coefficient of determination (R²) of 0.473 suggests that approximately 47.3% of the variation in financial performance among Bangladeshi private commercial banks can be attributed to the selected macroeconomic variables, highlighting a moderate explanatory power and the relevance of these factors in shaping bank profitability.
Research Implications: The findings suggest that banks should strengthen risk management practices concerning foreign exchange exposure and that government initiatives supporting export-oriented policies can enhance sectoral stability and performance.
Originality/Value: This study adds to the empirical literature on the macroeconomic determinants of bank profitability in Bangladesh, with a specific focus on private commercial banks.
Future Research: Future studies may extend the analysis by incorporating additional macroeconomic and non-economic factors, examining longer time horizons, or comparing results across different types of banks to provide broader insights
Youth Empowerment through Entrepreneurship Management: A Pathway to Sustainable Job Creation in Kenya
No full textYouth unemployment is an increasing problem around the world that makes poverty and dependency cycles worse, which slows down progress. In response, governments and development partners have introduced national policies, programs, and funding to furnish young people with the essential knowledge and skills to overcome these challenges. Despite the efforts made by various stakeholders to enhance youth empowerment, the outcomes have consistently fallen short of expectations. The education levels in Kilifi County, currently at 60%, have significantly impacted coastal youth's access to entrepreneurial training. The research aimed to determine the impact of entrepreneurship management practices on youth empowerment in Kilifi County, Kenya. The study extensively analyzed the effects of resource orientation, entrepreneurship culture, growth orientation, and management structure on youth empowerment programs in Kilifi County, Kenya. The empowerment theory, stakeholder’s theory, dynamic capability theory, and theory of innovation anchored the study. The study used a descriptive and explanatory research design. The target population consisted of four hundred youths participating in youth empowerment initiatives across seven distinct sectors; however, a sample size of two hundred was chosen via stratified and random sampling methods. Data were collected using semi structured questionnaires and analyzed through regression modeling. Findings indicated that entrepreneurship management practices significantly and positively influence youth empowerment programs (R² = 0.774, p < 0.01). Specifically, entrepreneurship culture, growth orientation, management structure emerged as the strongest predictors of youth empowerment. The study concluded that ongoing evaluation of the needs of young individuals, the strategic distribution of financial, human, and material resources, along with proactive collaboration with various stakeholders, fosters accountability, optimizes decision-making processes, and improves operational effectiveness
Firm Characteristics on the Financial Performance of Pension Funds Schemes with Moderating Role of Regulatory Frameworks in Kenya
No full textPension schemes are critical to national economic stability, offering retirement income security and supporting long-term financial planning. While global studies have explored determinants of pension fund performance, limited evidence exists in the Kenyan context. This study investigated the effect of firm characteristics on the financial performance of pension schemes in Kenya, focusing on fund size, fund design, portfolio mix, and membership age, while also examining the moderating role of regulatory frameworks. Anchored on Stakeholder Theory, Agency Theory, and the Theory of Constraints, the study employed a descriptive research design targeting 1,075 registered pension schemes, with a purposive sample of 39 schemes. Secondary data from annual reports (2018–2022) were analyzed using SPSS Version 20, employing both descriptive and inferential statistics. Multiple regression analysis, supported by diagnostic tests, confirmed model reliability. The findings revealed that fund size, portfolio composition, and membership age significantly and positively influenced financial performance, whereas fund design had a significant negative effect. Furthermore, the regulatory framework moderated the relationship between firm characteristics and financial outcomes. The conclusion of study concludes that these characteristics are critical determinants of pension fund performance in Kenya. Key recommendations include encouraging consolidation strategies to achieve economies of scale, diversifying investment portfolios to enhance returns, attracting younger contributors to ensure sustainability, transitioning from defined benefit to contributory schemes, and strengthening regulatory oversight to foster innovation and compliance. These insights contribute to policy and practice, offering actionable strategies to enhance pension fund sustainability and performance in Kenya