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

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.

scholarly journals EFFECT OF CREDIT ACCESS FUNCTION ON FINANCIAL PERFORMANCE OF SACCOS IN KENYA

2016 ◽  
Vol 1 (2) ◽  
pp. 35
Author(s):  
Jackson Mnago Ndungo’ ◽  
Dr. Olweny Tobias ◽  
Dr. Memba Florence
Keyword(s):  
Correlation Analysis ◽  
Financial Performance ◽  
Interest Rates ◽  
Causal Effect ◽  
Pearson Correlation ◽  
Secondary Data ◽  
Target Population ◽  
Descriptive Statistics ◽  
Inferential Statistics ◽  
Credit Access

Purpose: The study sought to establish the effect of credit access 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 either positive or negative relationships between the variables. 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 credit access function and financial performance thus the existence of credit reference bureaus was suitable for improving financial performance of SACCOs. This implied that CRBs help improve credit access resulting to increase in income in form of interest charged from the loans granted. In addition, Credit reference bureaus have led to increase in small and short-term loans. Credit reference bureaus helped members remove fear for access of credit and also for lenders no longer fear to get a negative selection of applicants since their competitor has already picked all cherries.Recommendation: The study recommended that lenders should reduce unnecessary transaction costs like high interest rates on provision of credits which may shy away borrowers or even make loans expensive thus reducing credit access to borrowers. There was also a need to develop strategic plans to act as a road map for the SACCOs future plans that would enhance credit access and performance improvement.

EFFECT OF RISK MANAGEMENT FUNCTION ON FINANCIAL PERFORMANCE OF SAVINGS AND CREDIT CO-OPERATIVE SOCIETIES IN KENYA

2017 ◽  
Vol 2 (5) ◽  
pp. 38
Author(s):  
Jackson Mnago Ndungo ◽  
Dr. Olweny Tobias ◽  
Dr. Memba Florence
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Pearson Correlation ◽  
Secondary Data ◽  
Sampling Technique ◽  
Target Population ◽  
Primary Data ◽  
Independent Variables ◽  
Management Function ◽  
Management Techniques

Purpose: The main objective of the study was to establish effect of risk management function on financial performance of savings and credit co-operative societies (SACCOs). The total assets of SACCOs grew from 257 billion to 301.5 billion while total deposits increasing from 182.7 billion to 205.9 billion from December 2013 to December 2014 financial years (SASRA, 2014). With savings of kes. 380 billion and asset base of Kshs. 493 billion, SACCOs control 39 percent of total loan accounts in Kenya (SASRA, 2012). Howevwer, some SACCOs have gone under liquidation thus putting billions at risk. This has led to the introduction of CRBs to control all financial institutions to reduce the information asymmetry effects between lenders and borrowers. The target population was 181 and a sample of 135 licensed deposit taking SACCOs as at 31st December 2014 was used. Stratified random sampling technique was used for each type or category. Secondary data from publications, CRBs, journals and financial records was used. Primary data was collected using structured questionnaires which had both close ended and open ended questionnaires. The study used multiple regression and Pearson correlation to test for significance and relationship respectively of the independent variables and the dependent variable.Findings: The findings indicated that risk management function had a positive and significant effect on financial performance of SACCOs in Kenya.Recommendation: The study recommends that lenders should review their risk management techniques regularly in order to coup with the rapid advances in technological changes. The study also recommended that SACCOs should always subject their clients to credit reference bureaus whenever they grant a loan.

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

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.

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

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

<p>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.</p>

scholarly journals Correlation Analysis of Factors Affecting Shoring Construction Techniques in Central Business District of Addis Ababa Ethiopia

2020 ◽  
Author(s):  
Hailemariam Kassu ◽  
Eyob Mekonnen ◽  
Dumesa Gudissa ◽  
Emer Quezon
Keyword(s):  
Addis Ababa ◽  
Pearson Correlation ◽  
Secondary Data ◽  
Central Business District ◽  
Target Population ◽  
Factors Affecting ◽  
High Rise ◽  
Construction Methods ◽  
Construction Techniques ◽  
Methods And Techniques

Recent urbanization of central parts of Addis Ababa has necessitated the use of deep excavations for the foundation of high-rise buildings and related infrastructure projects. The conditions of the subsoil, the safety of neighboring structures, groundwater conditions, experience by contractors, working space, the effect of vibration, and noise must be considered for the choice of deep excavation support system. Besides, economic factors, local availability of equipment, and technical staff are also governing factors for choosing an appropriate shoring technique. The study focused on the major construction methods and techniques of shoring works in Addis Ababa, Ethiopia. Only four projects utilized shoring construction techniques from the total number of high-rise buildings available in the City. The target population included a minimum of twenty respondents from the four construction sites constructed around Beherawi, Lideta sub-city in Addis Ababa. Two of the projects were supervised by Specialists from Varnero Foundation and Meseret Foundation PLC. Primary and secondary data are gathered to support the objective of the study. All the frequency distribution, Reliability, and Pearson correlation were analyzed using SPSS. All groups of factors that affect shoring construction were ranked using the Relative Importance Index (RII). Results indicated that geotechnical investigation, building type, and excavation depth were the major factors with an RII value of 0.89 and 0.86, respectively. Besides, the analyses showed that were strong correlations between the different factors within each group of factors in undertaking the shoring construction. Hence, it is suggested to take a deep and detailed sub-soil investigation to determine the suitability of shoring materials, appropriate construction methods, and techniques.

Shari'ah Compliance as a Matter for Financial Performance

2020 ◽  
pp. 355-371
Author(s):  
Md. Harun Ur Rashid ◽  
Md Hafij Ullah ◽  
Faruk Bhuiyan
Keyword(s):  
Regression Analysis ◽  
Financial Performance ◽  
Secondary Data ◽  
Descriptive Statistics ◽  
Annual Reports ◽  
Primary Data ◽  
Islamic Banks ◽  
Bank Executives ◽  
Structured Questionnaire

Islamic banks must comply with the Shari'ah rulings fully as it is the foundation of Islamic banks. However, the level of Shari'ah compliance is not the same among the Islamic banks. Similarly, despite performing well, the financial performances of Islamic banks differ from each other. Therefore, the chapter explores the association between financial performance and Shari'ah compliance. The chapter used both the primary and secondary data. The primary data was collected through surveying 300 bank executives from six full-fledged Islamic banks operated in Bangladesh with a structured questionnaire on Shari'ah compliance, whereas information on financial performance were extracted from the annual reports of the sample banks. Descriptive statistics and regression analysis were used to analyze the data and conclude the findings. The findings show that Shari'ah compliance has a positive and significant impact on the financial performance with respect to the total liabilities and total assets.

scholarly journals PENGARUH PEMBIAYAAN MUSYARAKAH, MARKET SHARE DAN MODAL INTELEKTUAL TERHADAP KINERJA KEUANGAN PADA BANK UMUM SYARIAH DI INDONESIA

2020 ◽  
Vol 5 (3) ◽  
pp. 344-361
Author(s):  
Ayu Yunita ◽  
Meutia Fitri
Keyword(s):  
Financial Performance ◽  
Market Share ◽  
Intellectual Capital ◽  
Commercial Banks ◽  
Sampling Method ◽  
Secondary Data ◽  
Target Population ◽  
Financing Market ◽  
Research Type ◽  
Research Show

The purpose of this research is to examine the influence of musyarakah financing, market share, and intellectual capital to financial performance on islamic commercial banks in Indonesia in 2013-2018. The research type used is verificative research by using Purposive sampling method. The target population of this research are 14 islamic commercial banks in Indonesia and the sample of the research are islamic commercial banks. The data used in this research are secondary data, which are gotten from for the book year ended December 31, 2013, 2014, 2015, 2016, 2017, and 2018. The result of this research show that musyarakah financing, market share, and intellectual capital silmutaneously influence to financial performance. Partially, musyarakah financing has influence to financial performance, market share has influence to financial performance, and intellectual capital has influence to financial performance.

scholarly journals EFFECT OF PRIVATIZATION ON FINANCIAL PERFORMANCE OF WATER UTILITIES IN KENYA: A CASE OF WATER COMPANIES UNDER COAST WATER SERVICE BOARD.

2017 ◽  
Vol 2 (1) ◽  
pp. 36
Author(s):  
Nguthu Jayne
Keyword(s):  
Service Delivery ◽  
Private Sector ◽  
Financial Performance ◽  
Service Providers ◽  
Secondary Data ◽  
Target Population ◽  
Water Utilities ◽  
Water Service ◽  
Private Sector Participation ◽  
Water Companies

Purpose: This study therefore sought to evaluate the effects of privatization on financial performance of water utilities in line with water sector reforms objectives aimed at improving performance in the sector in Kenya in order to fulfill the global and national goals. The target population of the study was all seven water utilities registered as public limited companies commonly referred to as water service providers (WSPs) that operate under Coast Water Service Board (CWSB) in coast region. Methodology:The study used a census approach hence, included the whole population. Secondary data was used in the study for analysis using the Statistical package for Social Sciences (SPSS) to generate descriptive statistics, trend analysis and inferential statistics.Results: Descriptive results indicate that private sector management is an efficient means of privatization which some water companies in Coast County adopt. Delegated management a method of privatization is most used by most Water Service companies as it improves efficiency in operations, productivity and service delivery. Leasing contracts are considered expensive means of privatization; however, it is equally a performance efficient means of privatization. Corporatization on the other hand promotes efficiency and service delivery.  Regression results show a positive and significant relationship between private sector participation, delegated management, leasing contracts and corporatization. ANOVA statistics indicate that the overall model was significant. Pearsons’ bivariate correlations show that all the variables had strong and positive correlation, private sector participation (0.893), delegated management (0.151), leasing contracts (0.441)and corporatization (0.536)respectively.Unique contribution to theory, practice and policy: These results imply that privatization positively affects the overall performance of a company. Through privatization companies are able to positively affect their service delivery, production levels, profitability and increase investment through stock trading.

scholarly journals Corporate Governance, Financial Performance and Firm Value;

2019 ◽  
Vol 8 (4) ◽  
pp. 41-48
Author(s):  
Evans Machero Ochego ◽  
Job Omagwa ◽  
Stephen Muathe
Keyword(s):  
Corporate Governance ◽  
Data Analysis ◽  
Central Bank ◽  
Financial Performance ◽  
Commercial Banks ◽  
Firm Value ◽  
Secondary Data ◽  
Target Population ◽  
Capital Requirements ◽  
Mediating Effect

Firm value is dependent on corporate which leads to increased value. High valued firms attract more investors. Towards firm value protection, minimum capital requirements were raised by the Central Bank of Kenya from 250 million to 1 billion shillings on commercial banks to cushion bank shareholders value. Despite the increased oversight and regulatory efforts on corporate governance to protect and enhance firm value, some commercial banks have recorded low firm value. Hence, this study sought to investigate the mediating effect of financial performance on the relationship between corporate governance and firm value of commercial banks in Kenya. The study was anchored on Agency Theory. Explanatory research design was adopted. Target population was forty four Kenyan commercial banks, where a census was conducted. Secondary data was collected from published financial statements and bank websites for the period 2009 to 2018. STATA version 13.0 was used for data analysis. Descriptive and inferential statistics specifically panel regression was used in data analysis. The study findings established that there is a statistically significant effect between financial performance and firm value of commercial banks in Kenya. Therefore, the study concluded that firms with good financial performance have high firm value. And as such, these calls for the management of the commercial banks improve financial performance which will go a long way in improving firm value. There is also need for Central bank of Kenya, Capital Markets Authority and Nairobi Securities Exchange to emphasis on corporate governance and short term goals to enable achievement of long term goals .  

scholarly journals INFLUENCE OF ETHICAL INVESTOR RELATIONS ON THE FINANCIAL PERFORMANCE OF LISTED FIRMS IN KENYA

2017 ◽  
Vol 2 (6) ◽  
pp. 28
Author(s):  
Manduku Daniel Ogwoka ◽  
Dr. Juliana Namada ◽  
Dr. Damary Sikalieh
Keyword(s):  
Financial Performance ◽  
Information Disclosure ◽  
Secondary Data ◽  
Strong Relationship ◽  
Target Population ◽  
Primary Data ◽  
Corporate Ethics ◽  
Investor Relations ◽  
Social Scientists ◽  
Listed Firms

Purpose: The objective of the study was to investigate the influence of ethical investor relations on the financial performance of listed firms in Kenya.Methodology: The study adopted a causal research design to establish the relationship between ethical leadership and financial performance of companies listed in the Nairobi Securities Exchange using correlation and regression analysis. Primary data was collected through a semi-structured questionnaire. Secondary data was collected from both the listed firms in the Nairobi Securities Exchange (NSE), and information from the sector regulator, the Capital Markets Authority (CMA). The target population of this study was 64 companies listed in the Nairobi Securities Exchange (NSE) with consistency being evaluated between the years 2011 to 2015. Data analysis was done using the Statistical Package for Social Scientists (SPSS).Results: The study found out that there exists a strong relationship between ethical investor relations and financial performance. The study established that information disclosure, the practice of corporate ethics and vetting of board members being based on ability to achieve the firms’ vision is essential for the listed firms.Unique contribution to theory, practice and policy: The study recommends truthful disclosure of information, especially regarding financial statements of the firms.

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