5 research outputs found
Real Estate loans and Financial performance of Commercial Banks in Kenya
No full textThe main purpose of the study was to determine the influence of real estate loans on financial
performance of commercial banks in Kenya and a corresponding hypothesis was formulated
and tested. A census of 42 fully operational commercial banks in Kenya was done for a period
of ten years from 2006-2015 because of increased loan portfolio, using across-sectional survey
design. A questionnaire was used to collect primary data from one key person in the
finance/credit department of each bank. Secondary data was collected from audited financial
statements and other relevant financial sources using data analysis sheet. Both descriptive and
inferential statistics were used. Statistical package for social sciences (SPSS) and STATA
version 14 were used to analyze data. Research findings established that real estate loans
influence the financial performance of commercial banks. The study findings are supported by
the Utilization of modern portfolio theory
Influence of Personal loans on the Financial Performance of Commercial banks in Kenya
No full textThe main purpose of the study was to determine the influence of personal loans on financial
performance of commercial banks in Kenya and a corresponding hypothesis was formulated
and tested. A census of 42 fully operational commercial banks in Kenya was done for a period
of ten years from 2006-2015 due to increased loan portfolio, using across-sectional survey
design. A questionnaire was used on primary data that involved collecting data from one key
person in the finance/credit department of each bank. Secondary data was collected from
audited financial statements and other relevant financial sources using data analysis sheet.
Both descriptive and inferential statistics were used. Statistical package for social sciences
(SPSS) and STATA version 14 were used to analyze data. Research findings established that
personal loans influence the financial performance of commercial banks. The study findings are
supported by the Utilization of loan pricing theory and Asymmetric information theory
Corporate Governance and Performance of Savings and Credit Co-Operative Societies in Selected Private Universities in Nairobi County, Kenya
No full textThe study sought to establish the effect of corporate governance on the performance of savings
and credit co-operative societies (SACCOs) in selected private universities in Nairobi County,
Kenya, and the corresponding hypothesis was formulated and tested. The study targeted 120
employees of SACCOs in the sixteen selected private Universities in Kenya and 110 of them
responded. The study adopted a descriptive research design and purposive sampling design.
SPSS Version 21 was used to analyze data using multiple regression analysis. Research
findings from the test of hypothesis established that corporate governance positively and
significantly affected the performance of SACCOs in private Universities in Kenya. The study
findings support Agency theory and stakeholder theory which explain the role corporate
governance plays in organizational performance
Determinants of Investment Decisions by Sacco Members: A Case of Imarisha Sacco, Kenya
No full textJournal articleBackground: Investment decision by SACCO members is influenced significantly by many variables; Arbitrary or well-founded. It is not known to what extent emotional biases and financial literacy influence such decisions. In this paper, we seek to empirically estimate the contribution of emotional biases and financial literacy to financial decisions.
Objective: To empirically evaluate the influence of financial literacy and emotional biases on investment decisions by SACCO members.
Method: Data was collected from July 28th to 31st 2025 among 284 Imarisha SACCO members in Kericho Couty, Kenya. The data was cleaned, coded, tested for normality before analysis. To estimate
the influence of financial literacy, herd behavior bias, overconfidence bias, loss aversion bias and
investment decisions, a multiple linear regression followed by multiple logistic regression are
estimated. The models were evaluated for validity. Then, results were obtained and interpreted.
Results: The findings from both multiple linear and logistic regression analyses demonstrate that
emotional biases and financial literacy significantly shape SACCO members’ investment decisions. In
this regard, the linear regression results indicates that investment decisions increase by 28.6% when
emotional biases and financial literacy are held constant. A unit increase in emotional biases and
financial literacy enhances investment decisions by 51% and 38.2%, respectively. Confirmatory
analysis using logistic regression model corroborate the joint influence of emotional biases
(overconfidence, loss aversion, and herd behavior) and financial literacy, with the latter contributing an
additional 16.1% improvement in investment outcomes.
Conclusions: Both emotional biases and financial literacy influence investment decisions. There is
both tradeoff and synergies in the influence of the considered variables
Comparative Analysis of Emotional Biases in Investment Decisions
No full textBackground: Emotional Biases have influence in investment decision of SACCO members. These biases are overconfidence, loss aversion, and herd behavior. We seek to establish empirically to what extent each emotional bias contributes to investment decisions and identify which emotional bias has an overarching influence.
Objective: To identify influence of each emotional bias and establish which among them has overarching influence.
Method: Perception based data was collected among 284 Imarisha SACCO members in Kericho County, Kenya between 28th to 31st July, 2025. The data collected was self-filled questionnaire using KoboCollect. The data was checked for completeness, entered in excel, cleaned, coded and analyzed. First the data was tested for normality before Principal Component Analysis (PCA) to compare the strength of the three dimensions; PC1, PC2, PC3. Results were obtained and interpreted.
Results: The principal component analysis revealed that herd behavior (PC1) emerged as the most significant emotional bias, loading strongly at 75.2% and explaining the largest share of variance at 58.26%. Overconfidence bias (PC2) also featured prominently, with a positive loading of 70.1%, and together with herd behavior, the two accounted for 81.26% of the total variance, underscoring their combined influence on investment decisions. Conversely, loss aversion bias (PC3) loaded negatively (-76.4%), indicating that it primarily acts as a constraint, discouraging SACCO members from making investment decisions. Overall, herd behavior exerts a disproportionate influence compared to other biases, while loss aversion uniquely inhibits investment participation
