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Asset structure, leverage, and value of listed firms: Evidence from Kenya
No full textFirm value shows the performance of a firm while reflecting the present value of the
firm’s future cashflows, hence affecting investment decisions. Therefore, this paper explores the relationship between asset structure, leverage, and firm value of 51 listed companies between 2010 and 2019 using secondary data collected from audited financial statements. The study applies panel data regression models and the causal-comparative research design. The quantitative data are analyzed using multiple regression. The result shows that plant, equipment, property, current, and financial assets influence the firm value positively. Nonetheless, the quotient of current to total assets was reported
to yield the highest beta coefficient, implying that significant firm value creation is realized for every additional current asset held, weighed against the quotient of additional equipment, property, and plant to the value of total assets. Leverage had an
insignificant influence on the value of firms, implying that no maximization of value is attainable in manufacturing firms through the astute use of borrowed funds. The study recommends that finance pundits consider firms’ asset structure and the use of borrowed funds when formulating financial and investment policies. The study enriches the scholarly world by developing a model for establishing the value of listed firms
Effect Of Credit Analysis On Non - Performing Loans Of Commercial Banks In Kenya
Get PDFCredit analysis is carried out by commercial banks to analyze and assess the credit risk and credit
worthiness of borrowers. Credit analysis is important since it helps lenders to secure their funds,
mitigate credit risk and improve on the performance of loans. The aim of the study was to assess
the effect of credit analysis on non-performing loans of commercial banks in Kenya. The specific
objectives of this study are to assess the effect of credit history analysis, credit capacity analysis
and credit repayment period analysis on the non-performing loans among the commercial banks
in Kenya. Target population used for this study was 42 commercial banks which are operating in
Kenya. The study was anchored on credit risk theory, Liquidity theory and Loan pricing theory.
The study adopted a descriptive research design and the questionnaires were used to collect
primary data from the 42 officers or heads of credit section in the head offices for all the 42
commercial banks in Kenya and the secondary data was collected from the bank websites and
published reports. The coded data was analyzed using the multiple regression analysis with the
help of SPSS software and Microsoft Excel spreadsheets. From the study findings it was found
that the credit history analysis had no significant effect on non-performing loans while credit
capacity analysis and credit repayment period analysis had a significant effect on the level of
non-performing loans in Kenya’s commercial banks. The study recommendations to commercial
banks were: commercial banks should ensure that they conduct extensive research to come up
with other credit analysis tools and techniques so that they can be able reduce the non performing loans, Capacity analysis should include the analysis of expected cash flows, tangible
assets, firm size and equity share. Extending loans to borrowers with good credit capacity leads
to decrease in non-performing loans among the commercial banks in Kenya. Commercial banks
should reevaluate the credit repayment periods so as to set optimal periods which borrower
should be able to repay the loan on time but also research on other factors influencing the loan
performance and level of non-performing loans. Finally, recommendations were made to
interested parties and a suggestion for further research gaps to be researched by the upcoming
researcher
Digital Marketing Strategy and Consumer Purchase Intention
No full textThe emergence of the electronic marketplace has
redefined marketing practices. Today, competitiveness
is defined by a firm’s experience in being tech savvy.
Leveraging digital marketing tools is an antecedent to
influencing consumer purchase intentions and is gaining
traction in many industries. In the face of these
developments, limited evidence exists on the adoption
and use of technology in the motor vehicle industry.
Global trends point to the existence of volatility in the
sales of vehicles, hence the need for examining the
probable nexus between digital marketing tools and
consumer purchase intention in the motor vehicle
industry in Kenya. Specifically, the study sought to
establish the effect of social media marketing, website
marketing and search engine optimization on consumer
purchase intention. Anchoring on the unified theory of
acceptance and use of technology, theory of reasoned
action and the technology acceptance model, the study
demonstrates the application of these theories in
influencing consumer purchase intention. Guided by a
cross-sectional survey design, the study targeted 197
registered motor dealers in Nairobi City County.
Researchers used a simple random sampling to select
131 respondents. A structured research instrument was deployed in data collection and the survey monkey
technique was applied to complement the process. A
pilot test of the instrument was done, and its validity and
reliability were confirmed. A mean scores analysis
shows that automobile firms have embraced the use of
digital marketing to a great extent. Exploratory factor
analysis decomposed the study variables into a three factor structure. The factors were regressed against the
predicted variable and the first two factors had a positive
and significant effect while the third factor had a
significant but negative effect on the predicted variable.
It was deduced that digital marketing tools significantly
affected consumer purchase intention; therefore, players
in the auto mobile industry should swiftly embrace and
invest in digital marketing technologies to excel in the e-market space
Corporate Governance Principles And Financial Management Of National Government Constituency Development Fund In Nyanza Region, Kenya
Get PDFThe main objective of the research was to determine the influence of corporate governance
principles on financial management of NG-CDF in Nyanza Region, Kenya. The study’s
specific objectives were; to establish the influence of the principle of accountability on the
financial management of NG-CDF in NG-CDF in Nyanza Region, Kenya, to determine the
influence of the principle of transparency on the financial management of NG-CDF in
Nyanza Region, Kenya, to establish the influence of the principle of fairness on the financial
management of NG-CDF in Nyanza Region, Kenya, to determine the influence of the
principle of integrity on the financial management of NG-CDF in Nyanza Region, Kenya.
Descriptive research design was adopted for the study. The total population of the study was
420 respondents from all the 42 constituencies across Nyanza Region, Kenya represented by
42 fund managers and 378 NG-CDF committee members. Proportional sampling, developed
by Taro Yamane, was used to calculate the study's sample size of 205. The study used
questionnaire as data collection tool for primary data. The test for normality was done using
Q-Q normal plots as generated by use of SPSS version 26 and the data used were normally
distributed. There was no multicollinearity between independent variables used as the
Variance Inflation Factor (VIF) of the variables fell between 1.564 and 1.683. The study
concluded that the four corporate governance principles account for up to 77.8% significant
variance in financial management (R square =.778, P=0.000). There was linear relationship
between independent variables and dependent variable as tested by the Pearson Correlation
Analysis. The corporate governance principles had correlation coefficients as follows:
Accountability (r=0.757, p=0.000), Transparency (r= 0.702, P=0.000), Fairness (r= 0.618,
P=0.000) and Integrity (r= 0.587, P=0.000). The study therefore recommended that for public
resources to be efficiently managed, the four corporate governance principles which are
accountability, transparency, integrity and fairness guidelines should be adhered to. The also
recommended that policy makers should put in place enabling policies and procedures to help
put in place a board that is independent, accountable, well structures and committed in
regards to Chapter VI of the Constitution of Kenya 2010 on integrity and leadershi
The Effect Of Knowledge Management Practices On The Performance Of Telecommunication Companies In Kenya
Get PDFKnowledge management practices are considered vital requirements for organizational survival
and achieving competitiveness. Knowledge management is also prerequisite because it assists
organizations in achieving their capabilities and attaining their organizational goals and objectives.
Knowledge management improves organizational performance. Organizations recognize
knowledge as a strategic resource for competitive advantage, survival, and business success.
Telecommunication companies in Kenya have experienced poor deployment and a lack of
knowledge management practices, causing poor performance. Kenya Telecommunication
companies operate in a challenging environment characterized by changing regulations, increased
demand for innovation demand, social exclusion, especially among the youth, and increased
competition from within the telecommunication industry. However, there is a dire need for
telecommunication companies in Kenya to adopt knowledge management practices to improve
organizational performance. This study’s objectives include: to establish the effect of knowledge
acquisition on the performance of telecommunication companies in Kenya, to determine the effect
of knowledge storage on the performance of telecommunication companies in Kenya, to find out
the effect of knowledge distribution on the performance of telecommunication companies in
Kenya, and to establish the effect of knowledge use on the performance of telecommunication
companies in Kenya. The study’s target population was 650 participants. The study deployed
stratified random sampling to select an appropriate sample size. Data was analyzed using
Statistical Package for the Social Sciences (SPSS) version 20. The study’s findings hope to be
valuable to the telecommunication companies in Kenya
Influence Of Forensic Accounting Services On Financial Performance Of County Governments In Kenya
Get PDFThis study undertook comprehensive analysis case studies and empirical data, to establish the positive impact of forensic accounting in ensuring efficient utilization of resources and in fostering the credibility of County governments in Kenya. The study sought to address the following: To assess the level of awareness on existing forensic accounting policies relating to financial management practices in the County governments ;to establish the extent to which Forensic Accounting Investigation is used to detect financial frauds in County governments; to examine the extent to which Litigation Support is used to prevent financial fraud and mismanagement ;to evaluate the effectiveness of reconstruction accounting and auditing in safeguarding public funds and assets and to assess how analysis of financial transactions is used to detect and prevent financial frauds in County governments.The study was guided by fraud triangle, deterrence and Fraud Diamond Theory. The study adopted a descriptive research design. The sample size was 30 percent of the targeted study regions (47 Counties) and one respondent each per cluster making the total number of respondents to be 45 (3 clusters). Purposive and convenience sampling was used in selection of each respondent per cluster. Data was collected by use of questionnaires and analyzed using descriptive and inferential statistics with the help of Statistical Package of Social Sciences Version 23. The findings of the study revealed that fraud hinders County governments from achieving their objectives through denial of critical resources that are meant to support such services. The inferential statistics showed that there was no statistically significant difference between fraud awareness and financial performance. However, there was average influence between awareness program and financial performance of county governments. The findings further showed that there was no significant difference between investigative aspect of forensic accounting and financial performance of county governments in Kenya. This implied that if investigative aspect as a forensic accounting service was enhanced, the incidences of fraud discoveries would have enhanced and appropriate action taken as a way of containing fraud in county governments. It was also established that though litigation of fraudulent cases has ability to deter involvement of employees in fraudulent activities as well as ability of forensic experts acting as prosecution witness, there were divergent views on the prosecution of past cases of fraud, conviction of fraud cases and recoveries from past beneficiaries of fraud. Inferential statistics however established that there existed a strong positive and statistically significant relationship between litigation support services.The result further revealed that financial reconstruction and auditing are important in fraud identification and control. Inferentially, it was found that there was no statistically significant difference between reconstruction accounts and auditing as a forensic accounting function and financial performance of county governments in Kenya. It was noted that forensic data analysis is a key forensic account strategy in fraud mitigation as it was revealed that there was no statistically significant difference between forensic analysis of financial and financial performance. Based on the findings of the study, the researcher recommended that; there was need for county governments to not develop comprehensive policies on fraud control and enforcement but also a program for creation of awareness on the same under induction program for new members as well as periodic sensitization of the of the staff. It was critical that investigative services within the organization should be enhanced through utilization of services of forensic accountants. There is need to have periodic reconstruction and auditing of financial operation as a way of establishing reliability of financial transactions and dependability of financial statements. Lastly, there is need to deeper analysis of financial transaction as away tracing the financial transaction in view of complexity in the dimension that financial transaction are assuming with advancement of technological innovation and globalization
Effect Of Strategic Orientation On The Organizational Performance Of Three- Star Rated Hotels In Nairobi County, Kenya
Get PDFThe tourism and hospitality sectors are recognized as among the most vital and swiftly expanding economic segments on a global scale. Within the current dynamic landscape, hotels encounter numerous challenges in their operations. These challenges encompass technological advancements, the frequent evolution of customer preferences, and crises such as pandemics, all of which pose substantial threats to the industry's sustenance. The ramifications of these challenges include diminished revenues, decreased customer demand, job cuts, escalated operational expenses, and even closures of businesses within the hotel industry. A pivotal capability that holds significant promise in enhancing performance for hotels is strategic orientation. This capability not only guides and influences a firm's activities but also shapes the behaviors necessary to ensure the firm's viability and survival. The study specifically examined into the influence of strategic orientations such as entrepreneurial, market, and technological aspects on the performance of these three star-rated hotels within Nairobi County, Kenya. The theoretical framework for this study is grounded in dynamic capability, and contingency theories. Employing a descriptive research design, the study intends to involve a target population of 320 top, mid, and low-level managers drawn from 40 three-star rated hotels in Nairobi County, Kenya. The research employed a stratified random sampling approach, ensuring comprehensive representation across all management tiers among the respondents. The determination of the sample size, comprising 178 respondents, adopted the Yamane formula. To gather primary data for the study, a structured questionnaire was utilized. The research adopted both descriptive and inferential. Descriptive statistics, such as mean, frequencies, and standard deviations, was employed to analyze quantitative data. The findings was presented through tables and figures. Furthermore, inferential statistics was employed, specifically regression analysis, to ascertain the effect of entrepreneurial, market, and technology orientations on performance outcomes. To conduct these analyses, the research used the SPSS (Statistical Package for the Social Sciences) software. The findings indicated entrepreneurial orientation (β= 0.347, p=000), market orientation (β= .290, p=000), and technology orientation (β= 0.476, p=000). The results indicate that all three strategic orientation variables; entrepreneurial orientation, market orientation, and technology orientation have positive and statistically significant relationships with organizational performance. The study concluded that fostering entrepreneurial qualities, prioritizing market orientation, and embracing technology-oriented practices are all significant factors positively impacting the organizational performance of three-star-rated hotels. The recommendations for three-star-rated hotels in Nairobi County based on the research findings include prioritizing the cultivation of an entrepreneurial mindset and culture among staff, emphasizing market orientation through customer-centric practices and adaptive strategies, and placing a strong focus on technology adoption and integration into their operations to enhance overall performance and competitiveness
The Structural Quality of Soil Organic Matter under Selected Soil Fertility Management Practices in the Central Highlands of Kenya
No full textAs influenced by agricultural practices, soil organic matter (SOM) stability is imperative in maintaining soil fertility and crop production. Integrated soil management practices have been recommended for soil fertility improvement by enhancing soil organic matter. We examined the SOM stability under integrated soil management practices for six consecutive cropping seasons in the high agricultural potential area of the Central Highlands of Kenya. The experimental design was a complete randomized block design with fourteen treatments replicated four times. The treatments were minimum (Mt) and conventional tillage (Ct) combined with sole mineral fertilizer (Mf), crop residue combined with mineral fertilizer (RMf), crop residue combined with mineral fertilizer and animal manure (RMfM), crop residue combined with animal manure and Dolichos Lablab L. intercrop (RML), crop residue combined with Tithonia diversifolia and animal manure (RTiM), and crop residue combined with Tithonia diversifolia and phosphate rock (Minjingu) (RTiP), as well as a control (no inputs). SOC was higher in treatments with organic inputs and a combination of organic and inorganic inputs. Treatments with sole mineral fertilizer and no input recorded lower SOC amounts. The C functional groups followed the sequence: alkyl C (53%) > O-alkyl C (17%) > aromatic C (9%) > carboxyl C (8%) > methoxyl C (7%) > phenolic C (6%). The alkyl C proportion was higher in organic inputs treatments, while O-alkyl C was higher in organic and inorganic fertilizer treatment combinations. Methoxyl C, aromatic C, and phenolic C proportion of SOC was greater in crop residue and mineral fertilizer combination, while carboxylic C was lower than the control in most treatments. In addition, the organic inputs treatments had a higher alkyl C/O-alkyl C ratio, increased aliphaticity, and higher hydrophobicity. Applying organic fertilizers individually or in combination with inorganic fertilizers could potentially increase C storage in the soil, thereby enhancing SOC stocks
Administrative Strategies and Revenue Collection Efficiency within the Devolved Governments in Kenya: Case of Machakos County.
No full textThe revenue collection within the county governments in Kenya has remained insufficient in funding the development projects and ensuring effective service delivery. However, administrative strategies, such as revenue diversification, human capital management and technology adoption, have been adopted by most of these county governments to enhance revenue collection efficiency. Hence this study sought to assess the effect of these administrative strategies on revenue collection efficiency within Machakos County in Kenya. The descriptive research design was applied to gather information using a structured questionnaire. Descriptive statistics and inferential analysis were used to analyze the data, which indicated that the adopted administrative strategies have positive influence on revenue collection efficiency within the devolved government systems, particularly the technology adoption strategy. The study recommends that the County Governments in Kenya should therefore put more effort on coming up with administrative strategies which are technology oriented in order to boost their revenue collections
Effect Of Reforms On Services Delivery In Murang’a County Government
Get PDFThe Kenya County Governments has a growing need to enhance service delivery as a key devolution objective. Insufficient funding, labor disputes, poor involvement in the budget process, and insufficient responsibility for the delegated resources from the exchequer are just a few of the difficulties the county has in providing services. The Auditor General has also repeatedly cited Murang'a County for failing to comply with a number of laws and regulations, which has had a significant impact on service delivery. The goal of this study was to determine how reforms affected the way the Murang'a County Government delivered services. The study's specific goals were to: evaluate the effects of automation on service delivery; ascertain the impact of procurement law changes on service delivery; ascertain the extent to which changes in motivational factors have an impact on service delivery; and ascertain the impact of leadership transition on service delivery in the Murang'a County Government. The study's methodology was a social survey utilizing mixed method. All 4,000 County Government employees made up the study's target population, from which a sample of 350 county employees was drawn. Data was gathered using a semi-structured questionnaire and processed with SPSS Version 22. The findings show a good and significant relationship between service delivery and reforms. Shows that reforms and service delivery at the County government of Murang’a had a strong linear relationship (correlation value of 0.830). The overall ANOVA results indicate that the regression model was significant at F=9.381 and (p<0.05) at 0.05 or 5% level of significant. Coefficient of determination (R2) was 0.113 which was significant at 0.001 level. This implied that reforms explained about 11.3% of the variation in service delivery. While automation and procurement laws reforms were not significant in correlation with service delivery, Leadership Transition and changes in Staff Motivation were significant and depicted a positive relationship. The study therefore establishes that various reforms and the attendant changes had a significant influence on service delivery in County Government of Murang’a. While the results show that the changes under review only accounted for 11.3% (R2= 0.113), the study concluded that changes in changes in staff motivation due to reforms had significant influence on service delivery in the county. The county staff play an important role in achieving the service delivery. To insulate service delivery from the negative effects of transition every electoral cycle, county staff should be given incentives to motivate in the light of changes that could disrupt service delivery. Also, the implementation of various changes should follow proper guidelines and timeline to ensure effective service delivery. The researcher recommends further studies on other possible factors that might also contribute to service delivery