Asian Journal of Economics, Finance and Management
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Capital Lifecycle and Financial Stability of Women Table Banking Groups in Nakuru County, Kenya
Get PDFPoverty continues to severely impact women in Sub-Saharan Africa, especially in regions like Nakuru County, Kenya, where many face financial exclusion. Table banking, a microfinance model, offers potential for economic empowerment, yet its sustainability remains uncertain. Most women's table banking groups in Nakuru fail to operate beyond three years, often displaying weaker Gross Profit Margins compared to national averages. This study examined how different phases of the capital life cycle affect the financial stability of these groups. It focused on four key components: Capital Generation, Capital Distribution, Capital Deployment, and Capital Reinvestment. The research, conducted from January 2021 to December 2023, was grounded in Resource Mobilisation Theory, Social Capital Theory, the Life Cycle Hypothesis, and Financial Intermediation Theory. A descriptive approach was used, targeting 322 women-led groups in Nakuru County, from which 82 were randomly selected for in-depth analysis. Primary data was collected through surveys administered to group leaders, with a pilot study conducted in Nakuru town. Data reliability and validity were ensured through rigorous statistical tests and methods, including Panel Regression and Pearson's correlation. Findings revealed that Capital Generation (p=0.044), Capital Distribution (p=0.012), and Capital Reinvestment (p=0.0000) positively influenced financial stability. Notably, Capital Distribution had the strongest positive correlation. Conversely, Capital Deployment (p=0.034) showed a significant negative impact on financial health. The study concluded that enhancing Capital Formation, efficient Capital Allocation, and robust Capital Recycling practices contribute to long-term financial resilience. However, excessive or mismanaged Capital utilisation can threaten stability. Based on these insights, it is recommended that women’s table banking groups prioritise savings, improve resource allocation, promote reinvestment, and manage deployment with caution to achieve sustainable financial outcomes
Impact of Lease Financing on the Financial Performance of Listed Firms in Kenya
Get PDFThe financial performance of manufacturing firms listed on the Nairobi Securities Exchange (NSE) has experienced fluctuations, with some firms stagnating or declining, raising concerns among stakeholders such as the government, investors, and shareholders. To address this, some firms are exploring lease financing to reduce asset acquisition costs. This study investigated the effect of lease financing on the financial performance of listed manufacturing firms, focusing on operating leases, finance leases, and leverage financing, while also examining the moderating effect of liquidity. The study was guided by Financial Contracting Theory, Walker’s Theory of Profit, Liquidity Preference Theory, and Trade-off Theory. A descriptive research design was employed, analyzing secondary data from 2017 to 2022 for all eight listed manufacturing firms. Using EVIEWS, descriptive and inferential analyses, including regression and correlation, were conducted alongside diagnostic tests. The findings revealed that operating leases and leverage financing positively and significantly influenced financial performance, whereas finance leases and liquidity had a negative yet significant impact. Liquidity was determined to be an independent factor rather than a moderating variable. The study recommends increased adoption of operating leases and leverage financing to improve financial performance, while advising caution in the use of finance leases. Further research is encouraged to investigate lease financing in other sectors, ensuring current insights and wider applicability in this area
Effect of Beauty on the Economic Opportunities: A Truth Hidden in our Subconscious
Get PDFPhysical attractiveness is frequently dismissed as a superficial trait, yet its pervasive influence on economic outcomes is both striking and undeniable. The study explores the profound impact of physical attractiveness on economic opportunities, particularly within the context of employment and career advancement. Through a mixed-methods approach, incorporating both quantitative surveys (N=220) and qualitative interviews across diverse cultural settings, the research reveals that societal perceptions of beauty play a pivotal role in hiring decisions, salary levels, and long-term career progression. Quantitative data were analysed using Analysis of Variance (ANOVA) to examine differences in economic outcomes (salary, promotions) across self-rated attractiveness levels. The NVivo software facilitated coding, ensuring systematic theme identification. Despite the focus on qualifications such as education and experience, the "beauty premium"—the advantage granted to physically attractive individuals—remains a significant and often subconscious factor influencing professional success. A striking 80% of respondents acknowledged that attractiveness affects their job prospects, with correlations found between self-rated attractiveness and higher earnings. The findings further highlight cultural and gender nuances, particularly in industries where personal presentation and public engagement are critical. This research underscores the need for greater awareness and mitigation of beauty bias in hiring practices, as well as the growing importance of fostering inclusive work environments that value diverse talents, regardless of physical appearance. Looking ahead, as workplace dynamics evolve with remote work and shifting cultural norms, the role of beauty in economic outcomes may transform, yet the persistence of attractiveness as a form of "erotic capital" in competitive markets remains a topic of concern. This study calls for continued research and policy interventions to ensure equity in economic opportunities, irrespective of beauty standards
Effect of Information Asymmetry, Institutional Ownership and Related Party Transaction on Real Earnings Management in Listed Companies in Nigeria
Get PDFThis study examines the effect of information asymmetry, institutional ownership, and related party transactions on real earnings management (REM) among listed manufacturing firms in Nigeria over the period 2018–2022. Drawing on agency theory and signalling theory, the study employs an ex-post facto research design and utilises panel data regression techniques to analyse secondary data extracted from the audited annual reports of ten purposively selected firms. The analysis, conducted using STATA 15, reveals that information asymmetry exerts a positive and statistically significant influence on REM, indicating that firms with less transparent information environments are more likely to engage in earnings manipulation through operational activities. Additionally, institutional ownership is found to have a significant and positive effect on REM, suggesting that institutional investors in Nigeria may exert short-term performance pressures or lack the monitoring intensity typically observed in more developed markets. In contrast, related party transactions exhibit a negative but statistically insignificant relationship with REM, implying a limited role in shaping earnings manipulation practices during the review period. The findings underscore the need to enhance financial reporting transparency, promote active and independent institutional shareholding, and maintain stringent oversight of related party transactions. The study contributes to the growing body of literature on earnings management in emerging markets and offers practical insights for regulators, investors, and corporate boards seeking to strengthen financial accountability and market integrity in Nigeria
Forensic Accounting Techniques and Performance of Listed Deposit Money Banks in Nigeria: An Investigative Approach
Get PDFFundamentally, deposit money banks derive their operations based on degree of integrity in their accounts, correctness and clear reporting that aids in boosting confidence of investors and the general public. This study looks at the apparent influence of forensic accounting techniques on the performance of the publicly listed Deposit Money Banks (DMBs) in Nigeria, and it applies the mixed methodological approach where survey and ex post facto strategies are applied. Data were gathered by administering structured questionnaires to 50 professional accountants working in banks in the capitals of Ondo and Ekiti States employing the stratified and census sampling methods. Regression analysis was employed to investigate the relationship between forensic accounting measures comprising forensic accounting procedures, reliability of reporting, detection of fraud, and forensic accounting methodologies and the performance of banks. The results show that forensic accounting practices have a substantial positive effect on bank performance (p = 0.0390), while other variables produced positive but statistically insignificant effects. The outcome of this study shows that the forensic accounting methods largely positively enhance bank performance. Banks should consider investing in forensic tools and training, infuse forensic processes into their operations, while regulatory agencies in the banking sector should encourage and support the development of forensic capacities in the rest of the industry for increased financial performance and fraud deterrence
Quantifying the Effects of Queuing on Customer Satisfaction in Commercial Banks
No full textThis study examines the effects of queuing on customer satisfaction in commercial banks in Cameroon by employing a quantitative approach with data collected from 25 customers of various commercial banks. Observation shows that many customers are still compelled to go to banks and queue for financial services instead of using online banking systems. Using descriptive statistics, correlation analysis, and linear regression, the study reveals that waiting time has a significant positive effect on customer satisfaction, with a coefficient of 0.502 indicating that customers instead feel happier when they spend longer time on lines to collect their salaries. In contrast, queue management has a significant negative coefficient of -0.589 at a significance level of less than 0.01, indicating that effective queue management is crucial for improving customer satisfaction. The study recommends that policymakers and bank managers prioritize effective queue management strategies to enhance customer satisfaction and loyalty. The findings of this study provide valuable insights for commercial banks in Cameroon seeking to improve their service delivery and customer experience
Itax System Role in Tax Compliance for Residential Landlords in Kiambu County, Kenya
Get PDFThe Kenyan government relies on taxes as a major source of revenue, yet compliance remains a challenge, particularly in the real estate sector. Despite the significant growth of Kenya’s real estate market, tax revenue has not increased proportionally due to widespread non-compliance among landlords. This study examined the role of the iTax system in improving tax compliance among residential landlords in Kiambu Town, focusing on tax rates, cost acceptance, tax literacy, and tax awareness. The research was grounded in fiscal exchange, ability to pay, institutional anomie, and economic deterrence theories. A descriptive research design was used to survey 1,004 rental property owners, with a sample of 286 selected using Yamane’s formula. Data was collected via structured questionnaires with a five-point rating scale, achieving a Cronbach’s alpha of 0.7 for reliability. The study employed SPSS for data analysis, using both descriptive statistics (frequencies, mean scores, and variability measures) and inferential statistics (multivariable regression). The results showed that tax literacy (β=0.364, p=0.000), tax awareness (β=0.254, p=0.015), and cost acceptance (β=0.235, p=0.002) positively influenced compliance, while higher tax rates (β=-0.221, p=0.007) reduced adherence. The study recommended that the Kenya Revenue Authority (KRA) enhance tax literacy and awareness through educational programs, workshops, and public campaigns. Additionally, making tax filing services more affordable through certified professionals and reviewing tax rates for fairness and transparency would encourage voluntary compliance. Future research should explore stakeholder sensitization and other unidentified factors influencing tax adherence among landlords
Application of Ito’s Theorem on the Value of Economic Variables of Business Cycles
Get PDFTo effectively manage an investment depends mainly on the value of each economic variables. Stochastic Differential Equation (SDE) is prevailing mathematical equation used for such prediction. Four systems of SDE were re-formulated from Bouali’s firm model to value economic variables of business cycles and solved using the Ito’s lemma. The detailed and coincided conditions are effectively achieved which gave rise to the valuation of profits, reinvestments, flow of borrowing and value of profits as a result of quadratic function with periodic influences in time varying investment. From the stochastic analysis, the results showed as follows: (i) an increase in reinvestments and flow of borrowing increases the value of profits over time (ii) the value of profit over time in the economic structural circuit shows positive linear trend of the investment, (iii) increase in the variations of yearly reassessment rate of the business increases the value of reinvestments over time. (iv) the value of profits as a quadratic function with periodic influences grows exponentially over time. Notwithstanding, the effects of the value of the economic variables were analyzed and ic solutions of economic variables and other relevant parameters were discussed within the investment cycles. The results presented here will be beneficial to investors in taken vital decisions based on the levels of their investments
Board Structure and Profitability of Microfinance Banks in Kenya
Get PDFMicrofinance institutions in Kenya undertake a pivotal function in addressing numerous financial needs arising from the unbanked population. They provide credit facilities at a low cost to support start-up businesses and maximise welfare. The board structure's impact on performance based on profitability in Kenyan microfinance banks is crucial to understand. Worldwide, no firm, be it financial or non-financial, can exist without the coordinating role of board members of the organisation. This is critical to ensuring efficient and effective use of resources for the attainment of organisational objectives. Factors such as board independence and gender can affect the overall profitability of these institutions. The study aims to structure of the board and the profitability of microfinance banks in Kenya. This study utilised secondary panel data from 2015 to 2022. Findings revealed that the independence of boards affects profitability insignificantly and negatively. Microfinance banks should focus on other governance attributes that may possess a more pronounced influence on financial performance. Board gender significantly affected profitability negatively. The study recommends that these institutions actively pursue gender diversity in their board composition. By increasing the representation of women on boards, microfinance banks can leverage diverse perspectives and decision-making styles, which may enhance strategic planning and financial performance. Board age negatively affected profitability. Microfinance banks should prioritise improving board effectiveness through the recruitment of members with diverse skills and experiences, fostering a culture of active participation, and ensuring robust strategic oversight. This signifies that the board of directors can influence the profitability of these institutions. Larger boards may bring diverse perspectives, skills, and resources that contribute to improved decision-making and strategic planning
Corporate Governance and Working Capital Management in Selected Manufacturing Firms in Nigeria
Get PDFThis study examined the effect of corporate governance practices on working capital management of the selected consumer goods companies in Nigeria, spanning from 2015 to 2023. The model of study specifies that working capital management (cash conversion cycle) is a function of corporate governance (board size, board composition, board remuneration and corporate social responsibility). Using cross sectional data extracted from 10 consumer goods companies, and estimated using fixed panel regression, the study revealed that board of directors’ remuneration and corporate social responsibility adversely affected cash conversion cycle while board size and board composition positively affected it. Further findings revealed that none of the variables significantly impacted on cash conversion cycle. The findings of the study underscore the importance of corporate governance best practices tailored to firm-specific contexts to enhance liquidity and operational efficiency. This study contributes to the literature on corporate governance practices in emerging economies and offers actionable insights for practitioners and policymakers