9 research outputs found
Board Diversity and Financial Performance; Evidence from Kenya
No full textUsing panel data from firms listed on the Nairobi Securities Exchange during the period
2004-2014, this paper examines the effect of board diversity and firm performance. Specifically the study investigates the effect of independent directors, board size, gender and financial expertise of directors and firm performance. The study finds, steadily with trends in most countries, the representation of women on the corporate board remains low. Regression results indicate that board independence has a negative and significant relationship on firm performance. The study also finds that gender diverse boards perform better as measured by Return on Assets (ROA)
Assessing the Factors Contributing to Non –Performance Loans in Kenyan Banks
No full textThe Banking sector is an indispensable financial service sector supporting development plans through channelizing funds for productive purpose, intermediating flow of funds from surplus to deficit units and supporting financial and economic policies of government. This paper will look at the factors contributing high rates of NPLs in Kenya despite the introduction of CBR. The other objectives are to determine the effects of Non-performing Loans in Kenyan commercial banks, to establish the trend of bad loans, before and after the introduction of CRB in Kenyan commercial banks and to determine the efforts taken to reduce the risks due to NPLs. The research covers all commercial banks in Kenya for the last ten years. The paper used secondary data and to analyse and draw conclusions and recommendations. This paper will provide an insight to the authorities manning the institutions and the government such that they find it in order to reduce the NPLs also it will provide a basis for further research. Key words: Non-Performing Loans, Kenya, Commercial banks, Credit Reference Bureau
Does Environmental Knowledge Matter? Social Influence and Pro-Environmental Behavior in University Students: An Indirect Effect Model
No full textPurpose- This study aims to provide an analytical framework that focuses on environmental knowledge as a mechanism through which social influence enhances pro-environmental behavior among university students.
Design/Methodology- The research employed quantitative strategy, cross-sectional survey design, and systematic random sampling techniques to obtain data from a sample of 335 university students using a structured self-administered questionnaire. The study hypotheses were tested using Hayes Process Macro vs. 3.5 (Model 4).
Findings- Results indicate that social influence strongly impacts students’ environmental knowledge, and both variables significantly predict pro-environmental behavior. Environmental knowledge was discovered to be the strongest predictor of pro-environmental behavior among students. Finally, results show that environmental knowledge mediates the relationship between social influence and pro-environmental behavior, revealing a complimentary mediation model superior to the direct effect model.
Originality- These findings reveal that social influence and students’ environmental knowledge have a strong influence in cultivating students’ pro-environmental behavior. Furthermore, the complementary mediation model, which shows superior results than the direct effect model, contributes to the body of knowledge and offers new insights into theory and practice.
Practical Implications- Environmental sustainability may be positioned as a social trend by government and business agencies, such as a promotional campaign, workshops, and training to demonstrate and raise awareness about environmental issues
Effect of Transformational Leadership on Organizational Performance of Micro Finance Institutions in Kenya
No full textTransformational leadership has attracted extensive attention in management research. The influence of transformational leadership on organizational performance is an important aspect. Given the background where greater attention is being paid to transformational leadership in the banking industry, this research aimed to establish the degree of the influence of transformational leadership on organizational performance of micro finance institutions in Kenya. Questionnaires were used for data collection. They were analyzed via structural equation modeling. The findings reveal that organizational performance is positively influenced by transformational leadership (β= 1.505; p < 0.05). These findings remind managers of the need to pay close attention to transformational leadership, to cultivate organizational performance, and thereby to eventually improve employee’s sustainable performance
EMPIRICAL ANALYSIS ON FINANCIAL PERFORMANCE OF LISTED FIRMS IN COMMERCIAL AND SERVICE SECTOR IN KENYA: CORPORATE BOARDS, DO THEY MATTER?
No full textCorporate boards are tasked with overall financial performance of firms under commercial and service sector which have for decades been at the centre of driving the economies of the developing nations as evidenced through the tremendous growth in the private sector credit over time. Unfortunately, commercial and service sector in Kenya has been witnessing a slow growth for the last five years topping the list of firms selling off their assets to cater for operational expenses. To realize better and improved financial performance however, it is vital to understand the nature and composition of these boards that have shown great interest in shifting towards asset-light business models to remain afloat. These actions have left shareholders with some of the worst wealth destruction experience ever seen at Nairobi Securities Exchange (NSE). Therefore, this study aimed at establishing the empirical relationship between board characteristics and financial performance of commercial and service sector in Kenya. The study used the base data collected from the NSE reports which has all the annual reports of the listed firms under commercial and service sector as at December 2015. The study employed a panel data estimation technique with application of Hausman specification test which preferred Fixed Effects Regression Model as opposed to Random Effects GLS model in estimation. Significance was tested at 5% level. From the study results, both board size and board diligence were shown to significantly increase firm financial performance while gender diversity led to a significant decline in firm financial performance. Based on the results, the study recommends for considerable proportion of directors in board since these managers have a better appreciation of the business and can therefore make better decisions. Also, there is need for more board meetings undertaken by directors to solve emerging organizational problem as they were associated with increased financial performance and finally, firms need to set up a department which will facilitate affirmative action through research to have appropriate incorporation of both gender as it was associated with improved financial performance
Effect of Transformational Leadership on Organizational Performance of Micro Finance Institutions in Kenya
No full textTransformational leadership has attracted extensive attention in management research. Theinfluence of transformational leadership on organizational performance is an important aspect.Given the background where greater attention is being paid to transformational leadership in thebanking industry, this research aimed to establish the degree of the influence of transformationalleadership on organizational performance of micro finance institutions in Kenya. Questionnaireswere used for data collection. They were analyzed via structural equation modeling. The findingsreveal that organizational performance is positively influenced by transformational leadership(β= 1.505; p < 0.05). These findings remind managers of the need to pay close attention totransformational leadership, to cultivate organizational performance, and thereby to eventuallyimprove employee’s sustainable performance
DEMOGRAPHIC DIVERSITY IN THE BOARDROOM: DOES GENDER AFFECT CORPORATE SOCIAL RESPONSIBILITY AND FIRM REPUTATION IN KENYA
No full textBoard of directors is the decision-making organ in the organization that faces complex tasks
pertaining to strategic-issue processing. It comprises of directors from various backgrounds
hence face interaction difficulties that can prevent them from fulfilling their tasks. This study,
will investigate whether the board diversity influences CSR and firm reputation in Kenya. This
will capture the boards’ monitoring and resource provision abilities; and it will be in line with
Agency and resource dependency theories. The general objective to the study is to establish
whether board diversity influences firm’s CSR and corporate reputation in Kenya. There have
been studies on how board diversity on firm performance and CSR but no paper has been
published looking at the corporate reputation and more over concerning gender diversity on
boards in developing countries.The number of women in the board has a significant impact on
corporate social responsibility and corporate reputation. Women bring a number of strengths to
the board including an increased sensitivity to CSR and participative decision-making styles
and these benefits contribute to enhanced corporate responsibility strength ratings.This study
makes a theoretical contribution to the corporate governance literature by analysing board
diversity within the framework of two major theories Agency and Resource. This study also
makes a theoretical contribution to the diversity and governance literature by providing a better
understanding of the relationships between board gender, professional and experience diversity
andfirm’s CSR and reputation.This study will be beneficial to the management of corporations
and top management in decision making especially on the issue of SCR and the firm’s
reputation. It will also lay ground for more studies to be conducted in Kenya and other
developing nations
Policy, Institutions and Aid Effectiveness in Developing Nations: Literature Revisited
No full textThis paper is an attempt to investigate policy and institutions aid effectiveness from various contributions made by past scholars. It was found that good policy environment and institutions were good for aid effectiveness. However, aid was also found to enhance good policy especially where past and present policy is bad. This argument was however highly contested by a number of researchers saying that it’s not policy alone that enhances aid effectiveness but other factors like external shocks. Political stability enhances aid effectiveness, though aid in repressive regimes was also found to be as effective to a given degree. The main lesson learned from this research is not to deny the role of policy and institutions in aid effectiveness but to consider its role in a dynamic and broader context. Keywords: Aid, Effectiveness, policy, countries, institution
Public-Public-Private Partnership for Sustainable Solid Waste Management in Eldoret Town, Kenya
No full textSolid waste management is one of the most difficult environmental problems in the urban centers of developing countries, where services are often grossly deficient, especially within low-income settlements. The purpose of this study was to investigate if Public-Public-private Partnership contributed to sustainability of solid waste management, in Eldoret town, Kenya. The objective was to investigate the effects of public-private firm’s resource capacity on sustainability of solid waste management in Eldoret town, Kenya. The researcher used stratified simple random sampling to get the respondents. Data was collected using interviews and questionnaires. Interviews were conducted to the management while the questionnaires were distributed to the sampled staff. Study findings revealed that resource centre has a significant effect on sustainable solid waste management; regulatory framework has a positive significant effect on solid waste management. The involvement of private partners in ensuring sustainable solid waste management is a positive contribution. Municipals should build a uniquely capable workforce enabling it to counter the problem of solid waste management. Clear health and sanitation regulations governing waste procedures should be in place. Municipal should relate well with residents, employees, SMEs and industries since good mutual relationship are paramount for sustainable solid waste management. Private partners should be consulted in formulation and development of bylaws and in making environment management systems for the public and private sectors. Keywords:Sustainable, solid waste, Public private partnership, Eldoret, Keny
