KCA University Institutional Repository
Not a member yet
1075 research outputs found
Sort by
Influence Of Public Financial Management Reforms On Organizational Performance Of Commercial State Corporations In Kenya
No full textMost commercial state corporations in Kenya have challenges in financial management which have remained below average and this is evidenced by streak of losses. The poor performance has been attributed to lack of sound financial management, poor reporting, and insufficient internal controls among others. These challenges have necessitated the need to interrogate the linkage amongst public financial management reforms and organizational performance of commercial state corporations. The specific objectives guiding the study were: to determine the extent to which financial planning reforms influenced organisational performance of commercial state corporations in Kenya; to investigate the effect of internal control systems on organisational performance of commercial state-owned entities in Kenya; to examine the influence financial reporting has on organisational performance of Kenya’s commercial state owned entities; and to determine the effect of revenue mobilization practices of organisational performance of commercial state corporations in Kenya. A corresponding number of hypotheses were formulated and tested at 95 percent level of confidence. The study was anchored on three theories; new public financial management theory, the agency theory and the theory of participatory budgeting. This study adopted a mixed method research design. It combined cross-sectional, descriptive and correlational research designs. The study focused on 30 commercial state corporations as the target population and utilised questionnaires to obtain primary data from one respondent from each of the thirty corporations. The questionnaires were administered online to the sample of 30 corporations out of which 24 filled and returned the questionnaires. This was a response rate of 80 percent. The data was analyzed using simple and multiple linear regression for independent effects and combined effects respectively. Results of the independent effect of financial planning indicated a positive and a statistically significant association with organization performance. However, financial planning reforms could only explain 21.9 percent of performance. Furthermore, jointly with other variables, financial performance was found not to have a significant association with performance of state corporations. On its own, internal control systems were found to account only for 2.8 percent variation in organisational performance. Further, the independent effect of internal control systems was found not to be statistically significant. Jointly with other variables, internal control systems were however found to have a statistically significant influence on performance. Financial reporting reforms were found to have a strong and positive correlation with organisational performance of 0.954 and were found to account for 90.9 percent variations in performance of state-owned organisations. Independently, financial reporting reforms were found to have a positive statistically significant association with performance. Jointly with other variables, financial reporting was also found to have a direct and statistically significant effect on stateowned entities performance. Revenue mobilization practices were found not to have a statistical effect on organizational performance, either individually or when combined with the other variables of the study. On its own, revenue mobilization reforms only accounted for 1.3 percent of performance and had a positive though weak correlation with performance. In addition, the association between revenue mobilization and financial performance was found not to be statistically significant. Similarly, the combined effect of revenue mobilization practices was found to have a statistically insignificant association with performance. The results of the combined effect of the public financial management reforms were found to account for 92.8 percent change in organization performance of state-owned entities. The study offered a theoretical linkage between public financial management theories and performance
Volatility Spillover influences and Response Asymmetries of Interest Rates, Exchange Rates, and Banking Stock Returns: Evidence from Banks Listed in the Nairobi Securities Exchange
No full textThis study examines response asymmetries and volatility spillover dynamics of Interest rates,
Exchange Rates and returns of a portfolio comprised of Kenyan banks that are listed in the
Nairobi Securities Exchange. The study employs [1] Exponential Generalized Auto regressive
Conditionally Heteroscedastic (EGARCH) model for empirical modeling. The results suggest the
presence of own transmission of returns in the banking sector. Further, they yield evidence of
own transmission, high persistence, and asymmetric response of volatility in banking stock
returns. Additionally, there is evidence of cross transmission of volatility from exchange rates
to banking sector returns. The findings have several policy implications for investors, bank
managers, and regulators
Relationship Between Selected Macroeconomic Variables and the Financial Performance of Investment Banks in Kenya
No full textCurrently,
investment banks in Kenya are facing a lot of challenges due to persistence losses However, the
available studies are inadequate to aid investment banks in overcoming these challenges in Kenya due to mixed
findings, resulting in rising uncertainty on equity investments performance, leading to massive losses among
investment banks. This study, therefore, sought to model the relationship between inflation, GDP, interest rates,
exchange rates, and financial performance of investment banks Arbitrage pricing theory Modern portfolio theory
as well as classical economic theory (flow oriented model) was used. A causal research design was adopted. The
study found that inflation has negative significant influence on financial performance of equity investments among
investment banks in Kenya. Also, GDP has positive and significant influence on financial performance of equity
investments among investment banks in Kenya. Interest rate was also found to have negative and significant
influence on financial performance of equity investments among investment banks in Kenya. In addition,
exchange rate has negative significant influence on financial performance of equity investments among investment
banks in Kenya. The study therefore recommends any investor including financial investors to methodically
analyze inflation trends and understand how it affects the company s financial performance. Investors must also be
in a position to predict the future concerning inflation changes
Effect Of Bank Specific Factors On Income Diversification Of Listed Commercial Banks In Nairobi Securities Exchange.
No full textBanking industry is a very critical industry in economic affairs of any given country not to mention the global economic affairs. Bank run in one country if not well controlled can quickly degenerate into a banking crisis and in the long run into a contagion either locally, regionally or even globally. Supervision and examination of banks using the recommended bank specific factors by CAMELS Model comes in handy to ensure all regulations and requirements are followed. This ensures the banks continues to offer their intermediation services as required. The rise in regulation of traditional income sources of commercial banks, industry deregulation and technology changes has allowed non-bank institutions to offer stiff competition to the banks especially in the traditional income space. This has made commercial banks to shift to non-interest incomes in order to supplement the incomes lost. This study therefore sought to understand how bank specific characteristics influence commercial banks in diversifying incomes in both interest and non-interest based sources as measured by Herfindahl Hirschmann Index (HHI). The study considered Capital Adequacy, Asset Quality, Management Efficiency, Earning Ability and Liquidity to test their effect on income diversification. The study targeted the commercial banks in Kenya but specifically focused on the listed commercial banks at the NSE. Census sampling method was employed since the listed commercial banks are few however commercial banks that did not meet the inclusion criteria were not considered in the analysis. The study process utilized the secondary published data from the CMA, CBK, NSE and Individual banks websites among other Economic reports. The data was collected using a data collection form and then transferred to Microsoft Excel for clean up before exporting it to STATA for the analysis. Panel Data analysis techniques was employed and GLS was used to fit the model since the technique is versatile in dealing with Auto correlation and Heteroscedasticty challenges. The output indicated that Capital adequacy has a strong positive correlation to income diversification while Asset Quality and Management Efficiency have a negative significance degree of association to income diversification. Earning Ability has a negative weak significance to the income diversification. Lastly, liquidity effect on income diversification was inconclusive. The output results implied that bank management, Central Bank and Treasury should develop policies and environment that allows banks to invest the excess capital for income diversification. Banks should develop policies and invest in models that favor Asset quality improvement and credit administration policies to manage asset quality. Additionally management of costs is vital in order to assure income diversification benefits hence cost management’s measures and monitoring tools should be implemented. Lastly liquidity effects on income diversification was insignificant and inconclusive therefore further studies on this is recommended
Effects Of Public Debt On Economic Growth Of East African Countries
Get PDFNational debt if properly used can greatly benefit a country and contribute to its economic growth.
However, various studies provide mixed findings on the effect of public debt on economic growth
in various countries. The purpose of this study was to determine the influence of public debt on
economic growth of three east African countries (Kenya, Uganda and Tanzania). Specifically, the
study aimed to establish the influence of external concessional public debt, external commercial
public debt and domestic public debt on economic growth of the three east African countries. This
study applied a causal research design as it sought to assess effect of public debt on economic
growth and collect secondary time series data for 57 years (1963 – 2019). The data on public debt
and economic growth was collected from World Bank, Central Bank of Kenya, Bank of Uganda,
Bank of Tanzania, Kenya National Bureau of Statistics, National Bureau of Statistics, and Uganda
Bureau of Statistics. Dynamic panel data regression was used to analyze the collected data. The
study findings established that concessional debt and external commercial debt had a significant
positive effect on economic growth, while domestic debt had a significant negative effect on
economic growth. Based on these study findings, the study makes the following recommendations.
First, the study recommends that the three East African countries should source for more external
concessional debt through bilateral or multilateral arrangements to plug into their budget deficits,
invest in strategic assets and finance projects in neglected sectors. Regarding external commercial
debt, the study recommends that the three east African countries should consider this source of
funding but ensure that a balance is struck between the different external financing sources. Lastly,
the study recommends that the level of domestic borrowing in the three East African countries
should be reduced. This is because domestic borrowing is harmful to economic growth of the three
countries
Effect Of Credit Management Practices On Loan Performance In Self Help Groups In Kenya
No full textSelf Help Groups (SHGs) play a major role in empowering members in order to improve their economic well being. However, self-help groups in institutions like Catholic Archdiocese of Nairobi are faced with issues such as increase in non-performing assets, high default rates, and large amount of loans in default, and lower stakeholder dividends. Therefore, the general objective of this study was to assess effect of credit management practices (CMP) on loan performance in Catholic self-help groups in Kenya. Moreover, the specific objectives were to establish the influence of credit terms, client appraisal, credit collection policies and credit risk control on loan performance of Catholic SHGs in Kenya. The target population was 120 accountants in Catholic SHGs in Kenya. This study adopted a census method in selecting the population of the study. A semi structured questionnaire was deployed comprising of open as well as closed questionnaire which was administered to accountants in each of the groups. Data was analyzed by employing descriptive as well as inferential statistics such as regression and correlation. The results indicated that credit terms have positive and significant effect on loan performance of SHGs in Kenya. In addition, findings established that client appraisal has a positive and significant influence on loan performance of SHGs in Kenya. Further, the study found that credit risk control has positive significant effect on loan performance of SHGs in Kenya. In addition; the study found that credit collection policies have positive and significant influence on loan performance of SHGs in Kenya. The study concludes that credit collection policy was the most significant credit management practice affecting loan performance of SHGs in Kenya, followed by credit risk control, credit terms and client appraisal. From the findings, the study recommends that the leaders of SHGs in Kenya should set credit terms such as credit period, interest rate and fees, repayment schedule and also provide penalties information in order to lower the default risk from the borrowers. In addition, the study recommends that before issuing the loans, the leaders of SHGs in Kenya should evaluate the clients‟ ability to pay back the loans in order to ensure that the clients are credit worthy. Moreover, the study recommends that the leadership of SHGs should set credit policies in order to save time by ensuring that the same problem is not addressed repeatedly each time a decision is required
Effect Of Corporate Governance Practices On Organizational Performance Of State Corporations In The Health Sector In Kenya
Get PDFSound corporate governance practices are a major contributor to effective and efficient
management of State Corporations in the health sector in Kenya. “Since independence, the level
of accountability in management of State Corporations has continued to decline despite the
availability of various monitoring structures like legal frameworks, Ethics and Integrity, Policies
and the Code of Conduct and Ethics intended to provide a clear road map to successful
performance of the State Corporations. The objective of this study was to determine the effect of
corporate governance practices on the performance of the State Corporations in the health sector
in Kenya. The specific objective was to determine the effects of accountability, transparency,
responsibility and moral integrity on organizational performance of health State Corporations.
Primary data was obtained from respondents through questionnaires. The study adopted a
descriptive research design with a population comprising of the health State Corporations. The
unit of observation in the health State Corporations comprised of Chief Executive officers,
Corporation Secretaries, staff from marketing, finance, human resource management, supply chain
management, audit and integrity assurance officers. A sample size of 354 respondents was used as
derived from the Yamane Formula. Primary data was collected the using questionnaires. The data
was analyzed using descriptive and inferential statistics. The study conducted normality test,
multicollinearity and heteroscedasticity. A regression model was used to test the effect of corporate
governance practices on the performance of the State Corporations in the health sector in Kenya.
The results indicated that accountability and organizational performance of health State
Corporations is positively and significantly related (β=0.158, p=0.000). The results further
indicated that transparency and organizational performance of health State Corporations is
positively and significantly related (β=0.114, p=0.002). Board Responsibility and organizational
performance of health State Corporations is positively and significantly related (β=0.108,
p=0.001). Lastly, results showed Moral Integrity and organizational performance of health State
Corporations is positively and significantly related (β=0.184, p=0.000). The study concluded that
corporate governance practices have a positive and significant effect on organizational
performance of State Corporations in the health sector in Kenya. The study recommends that the
management of the State corporations should establish certain control mechanisms that ensure
accountability. The study recommends that there should continuous internal check and audit on
the part of management and low level of management to ensure adequate accountability systems
in the State Corporations. Finally, the study recommends that monitoring should be done
thoroughly by the board. These findings inform the need to ensure compliance with corporate
governance principles and codes of governance
Effect Of Compensation On Employee Job Satisfaction In Private Hospitals In Nairobi City County, Kenya
No full textThe issue of healthcare workers striking has been the order of the day for many years in Kenya. Employees in private hospitals have raised complaints on financial and non-financial compensation. Interestingly, compensation demanded by healthcare workers are not only financial, but also non-financial incentives, such as on the job training to boost their efficiency and productivity. Despite the demands raised by employees in private hospitals, the same has not been effectively articulated. Thus, this study was designed to establish the effect of compensation practices on job satisfaction in private hospitals in Nairobi County. The specific objectives of the study were to: ascertain the effect of direct compensation, find out the effect of indirect compensation on employee’s job satisfaction, establish the effect of non-financial compensation on employee’s job satisfaction, and investigate the effect of competency-based pay compensation on employee’s job satisfaction. The study applied the theory of behavioral reinforcement, equity theory and agency theory to draw theoretical constructs that underlined the variables of the study. A descriptive survey research design was applied in this study. The target population comprised 566 private hospitals in Nairobi City County, where one Human Resource Officer from each hospital was targeted, which totaled 566 Human resource personnel as the target of population. The sample selection was done through Krejcie and Morgan table which yielded a sample size of 226 respondents. Purposive sampling was adopted to select the sample size. Structured questionnaires were applied in data collection since the study solicited quantitative data. Descriptive (mean, frequency and standard deviation) and inferential (correlation and linear regression) statistics were generated using SPSS version 24. Analysis of the collected revealed that all the predictor variables (competence-based pay, direct compensation, non-financial compensation, indirect compensation) were positively and significantly associated with employee job satisfaction in private hospitals (p<.05). This study recommends the need for organizations to offer competitive salaries and remuneration that is consistent with the qualifications of the employees. The study recommends the need for organizations to meet the financial needs of their employees in timely manner offer trainings and educational opportunities to the employees as way to upscale their job satisfaction
Effect Of Forensic Accounting Practices On Fraud Mitigation Among Commercial Banks In Kenya
No full textBanks are one of the critical enablers of development of a country since they facilitate economic progress through formation of new capital and/or provision of saving and lending services. Despite the critical role they play in the economy, financial institutions have been victims of fraud where banks have lost funds running into billions of shillings. Such fraud leads to the loss of colossal sums of money from banks and other financial institutions. The general objective of this study was to analyze the effect of forensic accounting practices on fraud mitigation among commercial banks in Kenya. The specific objectives of the study were to: determine the effect of fraud investigation on fraud mitigation; analyze the effect of litigation support on fraud mitigation; and establish the effect of dispute resolution on fraud mitigation among commercial banks in Kenya. The study adopted the Fraud Triangle Theory, Enterprise Theory of Crime and Routine Activity Theory. This study applied a descriptive survey research design to establish the impact of forensic accounting practices on fraud mitigation. The target population for this study were 41 commercial banks that are currently active as at 31st December, 2019. The study applied census technique since it is possible to access all the commercial banks in Kenya. Structured questionnaires were applied in data collection since the study seeks to solicit for quantitative data. Data Analysis was done using SPSS version 24. Data was analyzed using descriptive statistics, correlation analysis and multiple regression analysis. Analysis of data indicated that there exist a positive and significant association between litigation support and fraud mitigation in commercial banks (p<.05). In addition, the established that there exist a significant and positive relationship between fraud investigation and fraud mitigation in commercial banks (p<.05) in addition to existence of a significant and positive relationship between dispute resolution and fraud mitigation in commercial banks (p<.05). The study recommends the need for proactive measures that identify red flags, such as analysis of unusual activities and the need for capacity building through regular training and the need for commercial banks should go beyond investigating fraud to include process expedition in terms of fact presentation in litigation processes and adoption of alternative dispute resolution mechanisms outside courts since this enhances recovery of the lost funds
Survey Of Contemporary Challenges Faced In Marketing Of Life Insurance Policies In Embu County
No full textJust like many developing nations, Kenya is still in the early phases of comprehensive
insurance cover with liability coverage. The considerably low marketing of insurance implies
that insurance penetration is pretty low, devastating experience. Such as low penetration is
rendering competition in the insurance industry currently high and each insurer is striving to
get its slice. As a result, many insurance companies are registering falling business in an
extreme situation, and a number have folded because insurance cover coverage has been
decreased. The life insurance industry in Kenya, which is becoming dynamic, turbulent, and
unpredictable, demands reaction for efficiency and productivity to the environmental change
and also serves a significant majority. The way insurance firms operate would be changed
through their innovation and by enhancing their goods, markets and operations innovation.
However, these studies have not adequately addressed the challenges faced in marketing of
life insurance policies. Accordingly, this research was undertaken against this context in
order to bridge the gap by assessing the contemporary challenges faced in marketing of life
insurance policies in Embu County. The Objective of the study was to establish the effect of;
knowledge of insurance to acceptance of life insurance policy in Embu County, perception of
life insurance policy by the public of Embu County, influence of culture to taking up of life
insurance policy in Embu County, and demographic factors to acceptance of life insurance in
Embu County. The asymmetric information theory, The Reasoned Action (TRA), and Basic
Economic Theory were the foundations around which this research is built. The research
applied a descriptive research methodology, with 81 senior insurance managers from Embu
County as the target population and using census for sampling. As a result, the research
included responders from the whole target demographic. An unstructured questionnaire and
an interview guide were used to gather data for the study. The questionnaire was pretested for
validity and reliability in advanced of its administration. In analysis, quantitative approach
was used to yield descriptive statistics; explaining relationship between energy strategies and
realization of the big four agenda. SPSS was used to assist produce these descriptive
statistics. The study findings were beneficial to the insurance companies and policy makers in
Embu County for ensuring effective policy making on life insurance policy marketing and to
academicians and scholars for knowledge, and researchers and scientists as a reference guide.
The study found that; knowledge of insurances has a low positively and significantly affects
marketing of life insurance in Embu County, perceptions has a low positively significant
effect on marketing of life insurance in Embu County, culture has a moderate positively
significant effect on marketing of life insurance in Embu County, and demographics of
individuals have low positive and significant effect marketing of life insurance in Embu
County. The study revealed that, at 0.05 level of significance, knowledge of insurances,
perceptions about insurance, culture and demographics of individuals are strong predictors of
marketing of life insurance in Embu County explaining 26.16% variation in marketing of life
insurance in Embu Count