Equity Investments, Bond Investments and Financial Performance of Collective Investment Schemes in Kenya

The collective investment schemes in Kenya have witnessed increased volatility in their earnings, resulting in irregular growth in the industry. This necessitates the need to understand the factors contributing to poor financial returns from collective investment schemes. Hence this study sought to investigate the effect of equity investments and bond investments on Kenyan CIS’s performance. The specific objectives were: To assess the effect of equity investments, bond investments on financial performance of collective investment schemes in Kenya. The study was anchored on: modern portfolio theory and the efficient market hypothesis. The positivism philosophy was applied, with the firms adopting an explanatory research design. The target population was 17 Collective Investment Schemes registered by the Capital Markets Authority and were operational in the period 2010 to 2018. Secondary data was sought from the Capital Markets Authority Annual reports and from the respective websites of the CIS’. Data was analyzed using descriptive statistics, correlational analysis and panel regression analysis. Hypotheses were tested at a significance level of 0.05. Findings indicate that equity investment, bond investments have an insignificant effect on CIS’ return on assets. Further, equity investments had a positive and significant effect on liquidity whereas bond investments had an insignificant effect on liquidity. The study recommends that CISs actively revise their equity investments and bond investments to stimulate financial returns.

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Competitive Intelligence Practices And Performance Of Firms Listed On The Nairobi Securities Exchange, Kenya

European Scientific Journal ESJ ◽

10.19044/esj.2016.v12n19p107 ◽

2016 ◽

Vol 12 (19) ◽

pp. 107

Author(s):

Paul Waithaka

Keyword(s):

Financial Performance ◽

Secondary Data ◽

Target Population ◽

Business Environment ◽

Competitive Intelligence ◽

Annual Reports ◽

Primary Data ◽

Financial Measures ◽

Listed Firms ◽

And Performance

Performance is critical for every listed firm, as it enhances shareholder’s value and capability to generate earnings from invested capital. Some of the firms listed on the Nairobi Securities Exchange (NSE) have been performing poorly as indicated by the rising number of firms issuing profit warnings. The competitive business environment is continuously working to drive down the rate of return on invested capital. To counter these competitive forces, firms have resorted to gathering information at their disposal and converting it into competitive intelligence through analysis and human judgment. This study sought to determine the effect of competitive intelligence practices on performance of firms listed on the NSE. Firm performance was evaluated using both financial and non-financial measures. The non-financial measures used in the study were goal achievement and customer satisfaction, while Return on Assets (ROA) and Return on Equity (ROE) were the financial measures used. The target population was the sixty firms listed on the Nairobi securities exchange. Primary data was collected using a semi-structured questionnaire; while secondary data was obtained from the firm’s published annual reports available at the NSE using a document review guide. Quantitative data was analyzed using both descriptive and inferential statistics. The findings indicate that competitive intelligence practices have a positive and a statistically significant effect on the non-financial performance of firms listed on the Nairobi Securities Exchange. The intelligence practices were found to have a positive but statistically insignificant effect on the financial performance of listed firms. Managers of listed firms should raise the utilization level of competitive intelligence practices to enable the firms to make accurate predictions on changes in the business environment, compete better in the marketplace against rivals, improve on innovation and automation, track competitors’ activities and improve the competitiveness of their firms by identifying threats and opportunities before they become obvious. The study suggests that future researches should focus on extending knowledge on competitive intelligence practices to non-listed corporate sector firms to support the generalization of the findings to all sectors in the economy.

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DETERMINANTS OF FINANCIAL PERFORMANCE AMONG SAVINGS AND CREDIT CO-OPERATIVE SOCIETIES IN KAKAMEGA COUNTY KENYA

International Journal of Finance and Accounting ◽

10.47604/ijfa.583 ◽

2018 ◽

Vol 3 (1) ◽

pp. 1

Author(s):

Emily Esokomi ◽

Dr. Mbithi Mutua

Keyword(s):

Financial Performance ◽

Survey Design ◽

Pearson Correlation ◽

Correlation Coefficients ◽

Secondary Data ◽

Sampling Technique ◽

Target Population ◽

Risk Identification ◽

Annual Reports ◽

Return On Equity

Purpose: The main objective of this study was to investigate determinants of financial performance of Savings and Credit Co-operative Societies in Kakamega County. Methodology: This study used a descriptive survey design. The target population for this study was 44 SACCOs in Kakamega County. The study used census sampling technique. Secondary data was obtained from Audited Annual Reports of the 44 SACCOs in Kakamega County- Kenya. The data was analyzed using the Statistical Packages for Social Sciences (SPSS). Analysis of the data collected focused on both the descriptive statistics (trends) and inferential statistics (Pearson Correlation Coefficients and multiple regression coefficients. The analyzed data was presented in frequency tables and graphs. Regression analysis was used to establish the relationship between the independent and dependent variables. Results: The study findings revealed that liquidity and return on equity were positively and significantly related, results further indicate that capital structure and return on equity were positively and significantly related. It was further established that assets quality was negatively and significantly related to return on equity. Similarly, results showed that income diversification was positively and significantly related to return on equity Policy recommendation: The study recommends that all SACCO’s managers should be trained on the deployment of efficient systems to strengthen liquidity risk control fundamentals, that SACCOs should capitalize on efficient mobilization of members’ savings and borrow less, unless they get cheap sources of external funds such as soft loans, that the Saccos should improve their investment assets levels and improve assets quality by reducing the rate of nonperforming loans through credit risk identification.

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EFFECT OF CONSUMER PROTECTION FUNCTION ON FINANCIAL PERFORMANCE OF SACCOS IN KENYA

International Journal of Finance and Accounting ◽

10.47604/ijfa.145 ◽

2016 ◽

Vol 1 (2) ◽

pp. 48

Author(s):

Jackson Mnago Ndungo’ ◽

Dr. Olweny Tobias ◽

Dr. Memba Florence

Keyword(s):

Correlation Analysis ◽

Financial Performance ◽

Consumer Protection ◽

Causal Effect ◽

Pearson Correlation ◽

Secondary Data ◽

Target Population ◽

Descriptive Statistics ◽

Accurate Information ◽

Inferential Statistics

Purpose: The study sought to determine the effect of consumer protection function on financial performance of SACCOs in Kenya.Methodology: The study adopted a descriptive research design. The target population comprised of registered 181 deposit-taking SACCOs as at 31st December 2014 and the three licensed CRBs in Kenya. Stratified random sampling was used in the study, where SACCOs were grouped into five respective strata which were then randomly selected. The SACCOs were grouped into five respective strata of government based, teachers based, farmers based, private institutions based and community based. The study sampled 135 of the 181 (74.5%) licensed deposit taking SACCOs since these were the only licensed deposit-taking SACCOs by 2014. The choice of the licensed deposit taking SACCOs in Kenya was very objective since it was possible to obtain information that is representative of Kenya. In addition, SACCOs form the smaller arm in the financial sector and in most cases deals with a larger group of clients from the informal sector as opposed to other financial institutions like banks. Both primary and secondary data were analyzed using SPSS software, and statistics generated included descriptive statistics and inferential statistics. The particular descriptive statistics used included frequencies and percentages while the particular inferential statistics included Pearson correlation analysis and regression. Correlation analysis was used to establish relationships between the consumer protection function and financial performances. Regression analysis was used to establish the significance of the variables and the degree of causal effect of the independent variables on the dependent variable. The hypotheses testing were conducted using simple regression model.Findings: From the data analysis the study concluded that there was a significant and positive relationship between consumer protection function and financial performance thus the existence of credit reference bureaus was suitable for improving financial performance of SACCOs. This implies that that Credit reference bureaus have led to consumer protection and increased customers’ rights. Similarly, credit reference bureaus have led to assumption that borrowing is a right regardless of capabilities. Credit reference bureaus have reduces undesired monopolistic actions of lenders. Lastly, credit reference bureaus have led to reduced bad “culture” on loan repayment.Recommendation: The study recommended that lenders should ensure that they have accurate information before listing the unworthy borrowers to avoid unnecessary legal battles which may affect performance as a measure for customer rights protection.

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THE MODERATING EFFECT OF INDEPENDENT COMMISIONERS ON FINANCIAL POLICY AND PUBLIC OWNERSHIP TOWARD CORPORATE FINANCIAL PERFORMANCE

International Journal of Contemporary Accounting ◽

10.25105/ijca.v2i2.7517 ◽

2020 ◽

Vol 2 (2) ◽

pp. 139

Author(s):

Niko Silitonga

Keyword(s):

Financial Performance ◽

Stock Exchange ◽

Measurement Instrument ◽

Secondary Data ◽

Sampling Technique ◽

Annual Reports ◽

Corporate Financial Performance ◽

Financial Policy ◽

Public Ownership ◽

The Relationship

AbstractThe corporate financial performance is one of the measurement instrument whether the company is sustainable. This study aims to determine the effect of financial policy and public ownership on corporate financial performance with Independence of commissioners as a moderating variable in mining companies listed on Indonesia Stock Exchanges. This research uses a quantitative research model using secondary data. The data in this study were processed by the Moderating Regression Analysis (MRA) method supported by the IBM SPSS and Microsoft Excel programs as support software with data analysis techniques in the form of a classic assumption test and R2 test, F test, and t test. The population in this study are companies that have reported annual reports consistently during the 2014-2017 period. This study used a purposive sampling technique and obtained as many as 19 companies in accordance with predetermined criteria. The results of this study indicate that financial policy proxied by debt policy (DER) has a significant and positive effect on corporate financial performance, public ownership has no significant effect on corporate financial performance, independence commissioners strengthen the relationship between financial policy on corporate financial performance and independence commissioners do not has a moderating role between the relationship between Public Ownership and corporate financial performance. This study uses data from mining sector companies, it is recommended for further research to use other sectors such as: Property & Real Estate Sector, Manufacturing Sector, and others listed on the Indonesia Stock Exchange. The implications of this study for the company management, this research can provide input to the company to be able to choose and use an independent commissioner who fulfills expertise in the financial and business fields of his company in order to make a decision on his company's financial policy.Keywords: Independence of Commissioners, Financial Policy, Public Ownership, Corporate Financial Performance.

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Analyzing the Effect of Board of Commissioners’ Characteristics, Managerial Ownership, and Financial Performance on Financial Risk Disclosure

Sebelas Maret Business Review ◽

10.20961/smbr.v3i1.14960 ◽

2019 ◽

Vol 3 (1) ◽

Author(s):

Muhammad Syafwan Hady

Keyword(s):

Financial Performance ◽

Financial Risk ◽

Control Variable ◽

Secondary Data ◽

Target Population ◽

Financial Statements ◽

Managerial Ownership ◽

Risk Disclosure ◽

Independent Variables

This study aims to examine the role of the board of commissioners’ characteristics, managerial ownership, and financial performance on financial risk disclosure. The target population of this study was sharia banks registered in the Indonesian banking directory in 2012-2016. This study used secondary data in the form of annual financial statements obtained from the source sites of each bank. Using purposive sampling, 11 sharia banks in Indonesia were selected as the appropriate sample. This study employed a scoring technique to measure the level of financial risk disclosure. The results show that the independent variables including the board of commissioners size, independent board of commissioners proportion, profitability, and size as the control variable significantly influenced the variable of FRD. However, the variable of CAR, FDR, and managerial ownership had no effect on financial risk disclosure. The result of F test showed that independent variables included in the regression model simultaneously affected the dependent variable.

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The Effect of Branchless Banking Strategy on the Financial Performance of Commercial Banks in Kenya

International Journal of Financial Research ◽

10.5430/ijfr.v8n4p167 ◽

2017 ◽

Vol 8 (4) ◽

pp. 167 ◽

Cited By ~ 5

Author(s):

Gift Kimonge Dzombo ◽

James M. Kilika ◽

James Maingi

Keyword(s):

Financial Performance ◽

Commercial Banks ◽

Banking Sector ◽

Secondary Data ◽

Exploratory Research ◽

Electronic Banking ◽

Economic Activities ◽

Significance Level ◽

Negative Effect ◽

The Individual

The Banking sector acts as the life blood of modern trade and economic development. Commercial banks influence, facilitate and integrate the economic activities like resources mobilization, poverty elimination, production, and distribution of public finance. The financial performance of commercial banks has great implications in the financial sector and in the country at large, and will still remain an important subject of concern by all the stakeholders in the banking industry. In the last two decades, a lot of banking innovation has taken place in order to improve commercial banks financial performance. Branchless banking which involves the use of agency banking and electronic banking channels in the distribution of banking products and services is one such innovation. This study purpose was to evaluate the effect of branchless banking on the financial performance of commercial banks in Kenya. The specific objectives of the study were to analyze the individual effects of agency banking and electronic banking channels on the financial performance of commercial banks in Kenya and the combined effect of both agency and electronic banking on the financial performance of commercial banks in Kenya. The study adopted an exploratory research design. A survey of all the 42 licensed commercial banks in Kenya was done. Both primary and secondary data on branchless banking and financial performance of banks was obtained from the individual commercial banks, Central Bank of Kenya banking annual supervision reports respectively. Return on Assets (ROA) was used as the main indicator of commercial banks financial performance. The amount of investment in agency and electronic banking was used as indicator for agency and electronic banking. Data analysis was done using SPSS and STATA statistical softwares. Descriptive statistics, diagnostic tests and tests of hypothesis were done. Data was presented using tables and charts. Study findings indicated that when used in isolation; both agency and electronic banking had a significant negative effect on the financial performance of commercial banks at 5 percent significance level. However, when agency and electronic banking channels were used together as a multichannel strategy, they had a significant positive effect on bank’s financial performance at 5 percent significance level. The study recommends that for positive returns, commercial banks should invest in both agency and electronic banking as a multichannel strategy since these channels are complimentary to each other.

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The Relevance of Accounting Theory on Business Financial Performance in Nigeria

European Scientific Journal ESJ ◽

10.19044/esj.2018.v14n25p37 ◽

2018 ◽

Vol 14 (25) ◽

pp. 37

Author(s):

Osho, Augustine E. ◽

Adebambo Adeniyi

Keyword(s):

Regression Analysis ◽

Financial Performance ◽

Financial Reporting ◽

Secondary Data ◽

Reporting Quality ◽

Financial Reporting Quality ◽

Annual Reports ◽

Business Organizations ◽

Accounting Theory ◽

And Performance

The study was on the relevance of accounting theory on business financial performance in Nigeria. The objective of the study was to examine how accounting theory affects financial performance of business in Nigeria. The research was carried out, using three quoted companies (Berger Paint, Lafarge Cement and Meyer Plc) as the study area. Secondary data was gotten from the companys’ audited annual reports on return on asset with multiple regression analysis. Findings revealed that accounting theory have no significant relationship with the financial performance of business organizations in Nigeria. Thus, it is recommended that the Management of quoted companies must introduce new accounting theories to improve their financial reporting quality and performance; so that the level of their profit can significantly increase.

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From global aspirations to regional dominance: the case of Deutsche Telekom

Info ◽

10.1108/info-01-2014-0001 ◽

2014 ◽

Vol 16 (4) ◽

pp. 33-53 ◽

Cited By ~ 5

Author(s):

Jason Whalley ◽

Peter Curwen

Keyword(s):

Financial Performance ◽

Design Methodology ◽

International Markets ◽

Annual Reports ◽

Complex Nature ◽

Financial Returns ◽

International Expansion ◽

Content Type ◽

International Telecommunications ◽

Telecommunication Companies

Purpose – This paper aims to investigates the argument that the financial case for continued internationalisation by telecommunication companies is unclear with respect to Deutsche Telekom, a leading international telecommunications company. Design/methodology/approach – The international footprint of Deutsche Telekom is mapped over the period 1995-2013 (inclusive). Data are drawn from the annual reports of Deutsche Telekom as well as its principal subsidiaries. After mapping the international footprint, the financial dimension of this internationalisation is investigated to determine whether there are financial returns from continued international expansion. Findings – The results demonstrate the extensive and complex nature of the international footprint of Deutsche Telekom. The company operates in 38 countries through a variety of lines of business, with its systems division being responsible for almost half of these countries. Although international markets now account for a majority of the company’s revenues, the lack of consistent data means that it is not clear whether the financial returns from internationalisation are positive. Research limitations/implications – The paper highlights the challenges of using annual reports as a source of data, as well as the difficulties of mapping the international operations of large multinationals like Deutsche Telekom. Originality/value – The paper uniquely seeks to relate the international footprint of Deutsche Telekom to its financial performance.

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KINERJA KEUANGAN DALAM KERANGKA MAQASHID SYARIAH: PENGARUHNYA TERHADAP NILAI PERUSAHAAN DENGAN ISLAMIC SOCIAL REPORTING SEBAGAI VARIABEL MODERATING

Jurnal Riset Akuntansi Aksioma ◽

10.29303/aksioma.v15i2.6 ◽

2017 ◽

Vol 15 (2) ◽

pp. 72

Author(s):

Nur Fitriyah ◽

Alamsyah M Tahir ◽

Herlina Pusparini

Keyword(s):

Financial Performance ◽

Financial Statements ◽

Social Reporting ◽

Annual Reports ◽

Fiscal Year ◽

Islamic Banks ◽

Legitimacy Theory ◽

Significance Level ◽

Company Value ◽

The Relationship

The objective of this study is to provide empirical evidence on the influence of financial performance based on the framework of Maqashid Sharia toward the company value moderated by the Islamic Social Reporting (ISR) of Islamic banking in Indonesia. This study applied Agency Theory, Signaling Theory and Legitimacy Theory to justify the relationship between the variables studied. The sample of this study consisted of 11 Islamic Banks in Indonesia. Data were collected from financial statements and annual reports published by Bank Indonesia (BI) and Islamic Banks for the fiscal year of 2011-2015. Data were analyzed based on Moderating Regression Analysis (MRA). The results showed that financial performance, ISR and the interaction between the financial performances and the ISR does not simultaneously affect the company value at a significance level of 5%. However, it showed a significance level at 10% level of confidence. Partially, the results do not show that financial performance nor the ISR has influence on the company value. The result also indicated that ISR does not moderate the relationship between the financial performance and the company value. Keywords: financial performance, Islamic social reporting, company value.

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Analyzing Effect of Alternative Banking Channels on Financial Performance of Burundi Commercial Banks: Evidence from Kenya Commercial Bank in Burundi

Asian Journal of Advanced Research and Reports ◽

10.9734/ajarr/2020/v10i430247 ◽

2020 ◽

pp. 1-11

Author(s):

Nkeshimana Carlos ◽

Martin Onsiro Ronald

Keyword(s):

Financial Performance ◽

Commercial Bank ◽

Commercial Banks ◽

Strong Relationship ◽

Target Population ◽

Internet Banking ◽

Sample Population ◽

Mobile Banking ◽

Significance Level ◽

Descriptive Survey

The study sought to assess the effect of channels of alternative banking on financial performance of Kenya Commercial Banks in Burundi. The specific objectives were: to examine the effect of mobile banking on financial performance of Kenya Commercial Bank, Burundi; to assess the effect of internet banking on financial performance of Kenya Commercial Bank, Burundi; to examine the effect of auto teller machines on financial performance of Kenya Commercial Bank, Burundi; and to assess the effect of agency banking on financial performance of Kenya Commercial Bank, Burundi. The study employed descriptive survey research design as well as correlation research designs. Based on information obtained from KCB, the target population for the study was 37 employees and 114 customers. The researcher used Slovin’s formula to define the sample population n = 60 (14 employees and 46 customers). A questionnaire was used for data collection. The data was qualitatively and quantitatively analyzed. The results of the study showed that there was a strong relationship between the different banking distribution channels and the financial performance of KCB Bank. It also found that 14.1% of the total variance in financial performance of KCB Bank could be attributed to alternative banking channels. The remaining 85.9% of the variance in financial performance could be attributed to other determinants of financial performance that were not the focus of this study. ANOVA statistics revealed that the regression model was ideal since it had a significance level of 0.0%. The study also found that mobile banking, Automated Teller Machine, agencies and Internet banking affected the performance of commercial banks in a positive and statistically significant way. The study recommends that Burundian commercial bank sought to invest heavily in alternative banking as this will lead to an improvement in banks' financial performance. The study also recommended that KCB should examine the competitive environment and determine the means to achieve the goal of interoperability, and continue to make electronic banking products available, offering various types of bank cards adapted to the needs of each client.

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