1,720,960 research outputs found
Price Levels, Exchange Rates, Interest Rates and Return on Equity of Commercial Banks in Nigeria: The Moderating Effect of Bank Competitiveness
Get PDFThe study sought to establish the moderating effect of bank competitiveness on the relationship between price levels, exchange rates, interest rates and return on equity of commercial banks in Nigeria. This paper originates from the PhD Thesis of the author. The study focused fifteen out of the seventeen commercial banks in Nigeria which were fully operational within the period 2010 to 2017. The study found that bank competitiveness had a significant moderating effect (β=0.0484, p=0.0130) on the relationship between price levels and return on equity of commercial banks in Nigeria. The study however found that bank competitiveness had no significant moderating effect (β=0.0009, p=0.4990) on the relationship between exchange rates and return on equity of commercial banks in Nigeria. The study further documented that bank competitiveness had no significant moderating effect (β=0.2066, p=0.1860) on the relationship between interest rates and return on equity of commercial banks in Nigeria. The study therefore recommends that in periods of rising price levels, bank management should stay competitive in the market by adequately adjusting interest rates upwards and accordingly. This in turn will help in cushioning the effect of any loss in the real purchasing power of money
International Oil Prices, Exchange Rates, Interest Rates and External Reserves of Nigeria: The Moderating Effect of Balance of Trade
Get PDFThe study sought to examine the moderating effect of balance of trade on the relationship between international oil prices, exchange rates, interest rates and external reserves of Nigeria. This study emanates from the master’s thesis of the author. The analysis was based on time series data spanning from 1981 to 2014. The study was based on causal research design. The study findings reveal that balance of trade had no significant moderating effect on the relationship between international oil prices and external reserves of Nigeria. The findings of the study indicate that balance of trade had a significant moderating effect on the relationship between exchange rates and external reserves of Nigeria. Furthermore, the study findings reveal that balance of trade had no significant moderating effect on the relationship between interest rates and external reserves of Nigeria. The study therefore recommends that policies aimed at managing the exchange rate should incorporate the dynamics in the balance of trade of Nigeria
Information Technology Capabilities and Competitive Advantage of SKOL Brewery Limited Kigali, Rwanda.
Get PDFThis study assessed the effect of information technology capabilities effect on competitive advantage of Skol breweries limited Kigali, Rwanda. The study was grounded in the theoretical frameworks of technological acceptance model, perceived usefulness, perceived ease of use, user acceptability, and competitive advantage theory. A design that is descriptive was deployed. To obtain the data, a sample of 97 was selected using purposive sampling techniques from a target population of 100 that include sales marketing, production, operations, commercial, logistics, supply chain and information technology staffs of Skol Brewery Ltd Kigali Rwanda. A semi-structured questionnaire was prepared to collect the necessary data. Findings unveiled that IT infrastructure capability insignificantly affected competitive advantage positively; IT personnel capability insignificantly affected competitive advantage positively while IT management capability affected competitive advantage significantly and positively. The study recommends that the management of the brewery should invest in strengthening its IT management practices to fully leverage this advantage. This can be achieved by implementing comprehensive training programs for IT staff to enhance their skills in strategic IT alignment, project management, and data analytics. Keywords: Information Technology Capabilities, Competitive Advantage and Skol Brewery Limited DOI: 10.7176/EJBM/17-9-01 Publication date: October 30th 202
Effect of Price Levels, Exchange Rates and Interest Rates on Return on Assets of Commercial Banks in Nigeria
Get PDFThe profitability of commercial banks in Nigeria has been characterized by fluctuating trend over the years. Due to the significant roles carried out by commercial banks, this scenario has brought about concerns in the financial sector of Nigeria. The study sought to establish the effect of price levels, exchange rates and interest rates on return on assets of commercial banks in Nigeria. The period 2010 to 2017 was the time scope of the study. The study was based on descriptive, correlation and panel regression analyses which focused on the period 2010 to 2017. The study established that price levels had a significant effect (β=0.003, p=0.0170) on return on assets of commercial banks in Nigeria. The study findings indicate that exchange rates had a significant effect on return on assets (β=-0.0002, p=0.0440). Interest rates had a significant effect on return on assets (β=0.0136, p=0.0090) of commercial banks in Nigeria. The study recommends that the managers of commercial banks in Nigeria should always be in the know of the prevailing economic conditions of the country and that of other countries which they have operational branches. Commercial banks can engage in foreign exchange hedging practices where the fixed forward exchange rates can be used. This will cushion against the potential adverse effect of exchange rates on the assets of commercial banks. The study further recommends that policy makers and regulators (government) should implement policies that will lower the exchange rates which in turn will enhance the value of the local currency. This can be done by upholding restriction policies by government on importation of similar goods which are already manufactured locally in Nigeria. The study further recommends that in periods of high demand for loans, bank managers can take advantage of such periods by charging higher interest rates on loans, however moderately. Price discrimination can also come into play so as to apply different interest rates on loans to different customers which can be guided by their credit history. Keywords: Price levels, Exchange Rates, Interest Rates, Return on Assets and Commercial Banks DOI: 10.7176/EJBM/12-15-12 Publication date:May 31st 202
Board of Directors’ Characteristics and Corporate Tax Planning: Evidence from Manufacturing and Allied Firms Listed at the Nairobi Securities Exchange, Kenya
Get PDFThe study sought to examine the effect of board of directors’ characteristics on corporate tax planning by Manufacturing and Allied Firms Listed at the Nairobi Securities Exchange, Kenya. Following the explanatory research design, data for the nine (9) manufacturing and allied firms listed at the Nairobi Securities Exchange, Kenya for the period 2010 to 2019 was analyzed based on descriptive and inferential analyses. The results obtained revealed that board independence had significant negative effect p=0.009, β=-0.0037 on the effective tax rate of the manufacturing and allied firms listed at the Nairobi Securities Exchange. On the other hand, both board size and board gender diversity had insignificant negative effect (p=0.783, β=-0.0197, and p=0.146, β=-3.9573 respectively) on the effective tax rate of the manufacturing and allied firms listed at the Nairobi Securities Exchange. Hence, the paper concludes that amongst different board of directors’ characteristics, independence is most important in predicting the corporate tax planning. Specifically, a board of directors with greater independence would ensure better corporate tax planning of firms. The paper therefore recommends that the listed firms should always ensure the constitution of elaborate and balanced boards comprising of both executive and non-executive directors, as this brings about significant improvements in oversight functions of boards and consequently efficient tax planning
Chief Executive Officer Characteristics and Firm Value: Evidence from Construction and Allied Firms Listed at the Nairobi Securities Exchange, Kenya
Get PDFThe construction sector is considered one of the key sectors driving the economic growth of Kenya. The paper therefore set out to investigate the effect of chief executive officer characteristics on firm value of construction and allied firms listed at the Nairobi Securities Exchange, Kenya. Agency theory and stakeholder theory were used to support the relationship between the research variables. Inferential statistics were based on panel regression analysis. It was established that chief executive officer nationality and age had a significant effect on the firm value of construction and allied firms listed at the Nairobi Securities Exchange, Kenya. It was concluded that chief executive officers of Kenyan origin and young chief executive officers are more effective in enhancing firm value. It was however recommended that non-Kenyan individuals with a good understanding of the Kenyan market can still be considered for the top position of companies. Through the international experience of non-Kenyan chief executive officers, foreign expertise can be introduced to local firms. Young chief executive officers should be considered by listed construction and allied firms to benefit from the aggression and resilience that come with young age. The appointment of young or younger chief executive officers should be done given capacity as well as educational qualifications
DOES FISCAL CONSOLIDATION IMPROVE CURRENT ACCOUNT BALANCE? EVIDENCE FROM SUB-SAHARAN AFRICAN ECONOMIES.
No full textThe worrying debt situation in Sub-Saharan Africa has led to calls for government debt management by countries in the region in order to create additional fiscal space to enable them meet their development goals by reducing their budget deficits and ensuring that long-term public financial sustainability is achieved. This paper, using panel data analysis, provides answers to whether fiscal consolidation improves the current account balance of the countries in Sub-Saharan Africa. The results obtained showed a positive relationship between budget balance and current account balance in Sub-Saharan Africa; giving credence to the twin deficit hypothesis. The paper therefore concluded that fiscal consolidation is indeed a veritable tool to achieving stability of the external balance. Hence, it was recommended that governments in Sub-Saharan Africa should explore avenues that would boost their revenue generation towards financing their budget expenditures rather than overrelying on debt. To this end, measures including the widening of the tax base through targeting of the informal sector where perceived revenue leakages abound and enhancing their tax administration would increase government revenues
Financial Technology and Financial Inclusion of Small and Medium Enterprises in Kenya: Do Government Regulations Really Matter?
No full textThe study sought to evaluate the significance of government regulations on the relationship between financial technology and financial inclusion of Small and Medium Enterprises in Kenya. This study emanates from the Doctoral dissertation of the first author where the co-authors served as supervisors. Technology, Organization and Environment Theory and Financial Intermediation Theory were utilized. The study adopted explanatory research design. The top 100 Small Medium Enterprises in Kenya constitute the target population and the sample size was 200 based on purposive sampling technique and simple random sampling where two respondents were picked from each Small Medium Enterprises of interest. A response rate of 81.5 percent was achieved. The study used multiple regression analysis and it was established that government regulations had significant moderation effect on the relationship between financial technology and financial inclusion of small and medium enterprises in Kenya. The study recommends that the existing transaction limits should be reviewed in line with economic conditions of the country. Government should ensure that favorable lending rates are put in place so as to further enhance the level of financial inclusion of small and medium enterprises in Kenya. Government guidelines on screening of customers should be favorable to business owners and stringent requirements should be discouraged.
Keywords: Government Regulations, Financial Technology, Financial Inclusion, Small and Medium Enterprise
Mediating Effect of Firm Size on the Nexus between Camel Rating Model and Financial Performance of Deposit Taking Savings and Credit Cooperative Societies in Kenya
No full textSavings and credit cooperatives are of importance to developing countries due to their huge contributions on the national economy. The study sought to examine the mediation effect of firm size on the relationship between CAMEL rating model and financial performance of deposit taking SACCOs in Kenya. The study emanates from the Doctoral dissertation of the first author where the co-authors served as supervisors. Efficiency structure theory and working capital management theory were used. Panel regression analysis was used based on secondary data for the period 2013 to 2022. The study established that the mediation effect of firm size on the relationship between CAMEL rating model and financial performance of deposit taking SACCOs in Kenya was significant. Higher market value and consequently financial performance are linked to institutions with large firm sizes. It is therefore recommended that SACCOs should strive towards growing their total assets which will subsequently translate to higher profits and ultimately higher financial performance. The advantages of economies of scale of large institutions should be fully maximized so as to sustain higher financial performance of SACCOs.
Keywords: CAMEL Rating Model, Firm Size, Financial Performance and Deposit Taking SACCO
Effect of Cash Ratio on Financial Performance of Agricultural Firms Listed at the Nairobi Securities Exchange, Kenya
No full textThe study was informed by the continuous decline in financial performance of the agricultural firms listed at the Nairobi Securities Exchange, Kenya. The study emanates from the Doctoral dissertation of the first author in which the co-authors served as supervisors. A census approach was adopted where secondary data from audited annual financial reports of all the six Agricultural firms listed at the Nairobi Securities exchange, Kenya was used, covering the period 2015 to 2022. Descriptive analysis and panel regression analysis were applied. Based on the outcome of the panel regression analysis, the study established that cash ratio has significant effect on financial performance of the Agricultural firms listed at the Nairobi Securities Exchange, Kenya. The study recommends that agricultural firms listed at the Nairobi Securities Exchange need to improve on their cash and cash equivalents holdings so as to easily address current liabilities when due. This will in turn sustain the financial performance of agricultural firms listed at the Nairobi Securities Exchange, Kenya. Additional research can be done using a different method of analysis to further investigate the relationship between cash ratio and financial performance of agricultural firms listed at the Nairobi Securities Exchange, Kenya.
Keywords: Agricultural Firms, Cash Ratio, Financial Performance, Liquidity Preference Theory and Stewardship Theor
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