scholarly journals EFFECT OF INVESTMENT DIVERSIFICATION ON FINANCIAL PERFORMANCE OF AGRICULTURAL FIRMS LISTED AT NAIROBI SECURITIES EXCHANGE KENYA

2018 ◽  
Vol 3 (2) ◽  
pp. 57
Author(s):  
Rebecca Nasimiyu Wanyonyi
Keyword(s):  
Panel Data ◽  
Financial Performance ◽  
Research Design ◽  
Positive Relationship ◽  
Economic Environment ◽  
Coefficient Of Determination ◽  
Listed Firms ◽  
Descriptive Research ◽  
Doing Business ◽  
Study Population

The general objective of study was to examine investment diversification effect on the financial performance of agricultural firms listed at NSE. The study employed descriptive research design. The study population consisted of seven listed agricultural firms at NSE. The study employed a census approach because of the small number of agricultural listed firms at the NSE. Secondary panel data was used for a period covering seven years (2011-2017).R squared (coefficient of determination) was 52.80%. which showed that investment diversification explain 52.80% of the dependent variable variations that is financial performance The study also found that horizontal diversification, concentric diversification, conglomerate diversification and vertical diversification had a positive relationship with financial performance. The study suggested that firms should look for better avenues to mitigate the risk of doing business or their operations. Through diversification, a firm is not dependent on a limited number of products, locations, or markets in order to remain competitive and survive in the dynamic economic environment.

scholarly journals Effect of Employees Commitment and Distributive Justice to the Reward of Management Practices in Some Selected Organizations in South East Nigeria

2021 ◽  
pp. 10-18
Author(s):  
Ugochukwu Paul Orajaka
Keyword(s):  
Distributive Justice ◽  
Research Design ◽  
Significant Relationship ◽  
Positive Relationship ◽  
Management Practices ◽  
Employee Commitment ◽  
Public University ◽  
Coefficient Of Determination ◽  
Strong Positive Relationship

The study focused on understanding the influence of employee commitment and distributive justice to the reward of Management practices and its performance in some selected organizations in south East Nigeria. The data was collected using research questionnaires. Research design was adopted for this study. The sample sizes of 365 persons were used for the analyses. The application of correlation tools and mean likert was employed to evaluate the significant relationship and coefficient of determination of the variables. However, the tools show that there is a strong positive relationship association between the employee commitment and distributive justice in public university. The analysis also shows that there is a strong positive significant relationship in the system. The results also shows that the hypothesis will be accepted which says that there’s a strong and positive relationship with employee commitment and distribution of justice to reward of management in South East Nigeria.

scholarly journals Effect of Material Control Practices on Financial Performance of the Kenya Meat Commission in Kenya

2020 ◽  
Vol 2 (2) ◽  
pp. 105-111
Author(s):  
Sigat Mohamud Aminazahra ◽  
Peris Wambui Chege
Keyword(s):  
Control System ◽  
Financial Performance ◽  
Primary Data ◽  
Purchasing Decisions ◽  
Material Control ◽  
Descriptive Research ◽  
Effective Implementation ◽  
Private And Public ◽  
Study Population ◽  
The Relationship

Effective implementation of material control practices significantly improves the effectiveness of purchasing decisions and thus improved firm performance. To achieve this goal, material control practices must be fair, competitive and must control costs. However, in spite of the immense attention given to procurement practices and financial performance and the relationship that exist between the two constructs many organisations both private and public continue experience mixed performance. Anchored on the resource based theory the study sought to determine the effect of material control on financial performance of the Kenya meat commission. Descriptive Research Design was used. The study population comprised of Kenya Meat Commission headquarters in Athi River, Ladhies branch in Nairobi, Mombasa deport and the user department in Athi River. Since the population was small and of manageable sizes, a census study was done. Semi structured questionnaires was used to collect primary data. The respondent argued that the inventory quantities are very important in ensuring that these effective and efficiency in the operation of Kenya meat commission and ensuring that there is constant supply of meat to the users in Nairobi and its environment. It was evident that material planning control system (mean of 4.75) greatly affected the performance of Kenya meat commission. The finding on distribution material in Kenya meat commission as indicated by a mean of 4.00 presented that it greatly affected the financial performance of Kenya meat commission. The study concluded that the relationship between material control and financial performance of meat commission was positive and significant.

scholarly journals Executive Compensation, Ownership Structure and Dividend Payout: Evidence from Malaysia

2020 ◽  
Vol 16 (2) ◽  
pp. 4-75
Author(s):  
Ravichandran K. Subramaniam ◽  
Chee Ghee Teh ◽  
Murugasu Thangarajah
Keyword(s):  
Panel Data ◽  
Executive Compensation ◽  
Ownership Structure ◽  
Positive Relationship ◽  
Listed Companies ◽  
Payout Policy ◽  
Dividend Payout ◽  
Positive Evidence ◽  
Listed Firms ◽  
The Relationship

This study seeks to present the relationship between executive compensation, dividend payout policy and ownership structure of listed firms in Malaysia. We examine a panel data on a sample of 300 of the largest Malaysian public listed companies (PLCs) on Bursa Malaysia for the years 2008 to 2014. Based on 2,009 firm-year observations, our results show consistent empirical positive evidence on the association between dividend payout and executive compensation across all models. However, the results are inconsistent with Bhattacharyya model of dividend payout. Further, there is evidence that government and family ownerships are positively associated with dividend payout. Our results show that the positive relationship between executive compensation and dividend payout is more evident in politically connected firms (PCON firms) which is consistent with the clientele (catering) theory.

scholarly journals Financial Performance Feedback and R&D: A Comparison of Different Models

2018 ◽  
Vol 22 (1) ◽  
pp. 01 ◽  
Author(s):  
Michal Jirásek
Keyword(s):  
Panel Data ◽  
Financial Performance ◽  
Empirical Research ◽  
Performance Feedback ◽  
Performance Indicators ◽  
Stock Exchange ◽  
Empirical Studies ◽  
Current Strategy ◽  
Listed Firms ◽  
Performance Factors

<p><strong>Purpose:</strong> Performance feedback either supports or undermines a firm’s current strategy. R&amp;D is one of the most favoured proxies for a firm’s response to performance feedback and this relation complements the commonly studied influence of innovation (R&amp;D) on a firm’s performance with a backward loop. The performance feedback literature works with a number of models used to empirically test these propositions and this study aims to compare the most common measures and models to locate potentially preferred alternatives for further research.</p><p><strong>Methodology/Approach:</strong> The research uses panel data with 1,558 observations. The sample consists of 208 US stock exchange listed firms followed over the years 2001-2015.</p><p><strong>Findings:</strong> The research suggests that models with separate historical and social aspirations may yield a slightly better fit with the data. However, the findings also indicate differences among R&amp;D related dependent measures and their implications for empirical research. These differences arguably also reflect the underlying construct heterogeneity, therefore, researchers should work carefully with them to correctly explain their findings and provide results comparable to the previous literature.</p><p><strong>Research Limitation/implication:</strong> The limitations of the research rose mainly from the limited number of performance factors studied, which stems from an emphasis on standard financial performance indicators.</p><p><strong>Originality/Value of paper:</strong> The research contributes to the performance feedback literature by complementing a previous study that compared different aspiration models (Bromiley and Harris, 2014). By focusing on financial performance and R&amp;D variables, the research offers the first concise entry point for researchers considering empirical studies on financial performance feedback and R&amp;D relationship.</p>

Financial Inclusion Strategies and Performance of Commercial Banks in Rwanda; A Case of I&M Bank in Rwanda

2021 ◽  
Vol 5 (4) ◽  
pp. 23-34
Author(s):  
Elysée Byukusenge ◽  
Keyword(s):  
Financial Performance ◽  
Financial Services ◽  
Commercial Banks ◽  
Financial Inclusion ◽  
Coefficient Of Determination ◽  
Banking Services ◽  
Remote Areas ◽  
Descriptive Research ◽  
Interview Guide ◽  
And Performance

The research intended to analyze the effect of financial inclusion strategies on performance of commercial banks in Rwanda, a case of I&M Bank Rwanda Ltd. The specific objectives of the study were to examine the effect of agency banking, financial innovation and loan products on financial performance of commercial banks in Rwanda and guided by three theories which are agency theory, constraint-induced theory and innovation theory. A sample size of 92 employees among 1,232 was taken and data was collected through questionnaires and interview guide. SPSS 23, descriptive research design, correlation and regression statistic were used in the analysis of collected data. The results of the study indicated that agency banking application is the important driver to facilitate people to get banking services form banks. The results established that agency banking and financial inclusion are satisfactory in explaining the performance of commercial banks. The coefficient of determination, also known as the R square, was 0.594 (59.4%). This implied that agency banking and financial inclusion strategies explain 59.4% of the variations in the performance of commercial banks. As conclusions, financial inclusion strategies analysed in this research play an important role in the performance of commercial banks in Rwanda. Financial institutions in Rwanda use financial inclusion strategies to boost their financial performances. Automated Teller Machine (ATM) is important and very effective because it facilitates the customers the access of their accounts to withdraw or deposit money as it is for digital banking, debit cards and smart cards. This enables banks to increase sales and influence its financial performance. For loan product, it is concluded that this is an important strategy of I&M Bank to attract customers thus affect the financial performance of the bank. The study recommended that I&M Bank has to improve its agency banking by increasing their number and location. I&M Bank has to extend its branches to remote areas and increase the number of ATMs so that people in remote areas get different financial services easily. Keywords: financial inclusion strategies, agency banking, financial performance, I&M Bank, Rwanda

Does institutional ownership engagement matter for greater financial performance?

2019 ◽  
Vol 61 (2) ◽  
pp. 359-383
Author(s):  
Brahmadev Panda ◽  
N.M. Leepsa
Keyword(s):  
Panel Data ◽  
Financial Performance ◽  
Developing Economies ◽  
Institutional Ownership ◽  
Equation Modeling ◽  
Data Set ◽  
Content Type ◽  
Listed Firms ◽  
Pressure Sensitive ◽  
The Impact

Purpose Previous empirical evidence scrutinizing the impact of the institutional ownership on the firm performance has produced inconclusive results and mostly concentrated in the developed market. Hence, the purpose of this paper is to assess the impact of the ownership engagement by pressure-resistant, pressure-sensitive and foreign institutions on the corporate financial performance in a developing market like India post US financial crisis. Design/methodology/approach This study considers a panel data set of 361 Indian listed firms from National Stock Exchange (NSE) 500 index for a period of eight years from financial year (FY) 2008-2009 to FY 2015-2016. The panel data regression (pooled ordinary least square [OLS], fixed-effect [FE] and random-effect [RE]) and simultaneous equation modeling are used by considering the institutional ownership engagement as both exogenous and endogenous variable. Findings The test results show that institutional ownership engagement by the pressure-resistant and foreign institution have a robust and positive effect, while ownership engagement by the pressure sensitive institution has an adverse impact on the financial performance of the Indian listed firms. Research limitations/implications The findings will boost the monitoring activities of the institutional owners in the developing markets. The investment from pressure-resistant and foreign institutions needs to be augmented in Indian firms to improvise their governance functions and performance. Originality/value This research will enrich the governance literature of the developing economies as the studies on institutional ownership engagement are limited in the developing world. Further, this study adds value by capturing two emerging institutional ownership category such as the pressure-resistant and pressure-sensitive, which are still untouched in the Indian context. Next, the consideration of the institutional ownership as both exogenous and endogenous is also novel to the Indian literature.

scholarly journals Corporate Governance and Firm Performance in State-Owned Enterprises (SOEs) in Zambia: A Systematic Review

2021 ◽  
Vol 5 (1) ◽  
pp. 93
Author(s):  
Bryson Mumba ◽  
Eustarckio Kazonga
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Research Design ◽  
Financial Statements ◽  
Legal Framework ◽  
Board Effectiveness ◽  
Descriptive Research ◽  
Board Membership ◽  
Governance Practices ◽  
Public Scrutiny

The research systematically documented and described the corporate governance practices and financial performance in State-Owned Enterprises (SOEs) in Zambia from 2006 to 2017. The research design that was adopted was the descriptive research design to systematically describe the corporate governance practices and financial performance of SOEs in Zambia. The corporate governance attributes for SOEs such as board size, board appointing authorities and board membership have been found to be prescribed by a diversity of Acts of Parliament for different SOEs. This finding suggests that the governance of these entities could be a challenge insofar as the uniformity of the legal framework for the governance of the entities was concerned. In addition to this, board membership which are designated by specific government positions rather than merit based, compromises board effectiveness. The study has further shown that failure to produce and publish, for public scrutiny, audited financial statements on a timely basis leads to lack of transparency and accountability. The financial performance has been found to have been poor as the SOEs on average produced negative returns on total assets and the SOEs were highly geared based on operating gearing and financing gearing. Lastly, financial performance of SOEs and the corporate governance practices differed significantly across different industries under which the SOEs operated.

scholarly journals The Corporate Social-Financial Performance Link: Evidence from Pakistan

2016 ◽  
Vol 04 (01) ◽  
pp. 64-75
Author(s):  
Shahzad Butt ◽  
◽  
Safdar Ali Butt
Keyword(s):  
Financial Performance ◽  
Positive Relationship ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Least Square ◽  
Influential Factor ◽  
Listed Firms ◽  
Financial Firms ◽  
Corporate Social ◽  
The Relationship

This empirical investigation has been conducted to constitute a link between corporate social performance and corporate financial performance in Pakistani listed firms. For this purpose the data from seventy listed non-financial firms at KSE from twenty one sectors which are engaged in CSR activities for a period of six years from 2008 to 2013 was employed. The two-stage least square (TSLS) methodology has been used to explore a link between CSP and CFP. The results of study revealed that there is a simultaneous link between social and financial performance. Corporate social performance has been found as positively linked with the previous CFP which supports the slack resources theory. Social performance initiatives taken by the firms have also been found as having a positive relationship with future CFP. Secondly, this study examined the relationship between financial performance and social performance, and the results disclose that there is a positive relationship between CFP and CSP, and the fore most influential factor of corporate social performance was found to be size of the firms and the association between firm size and CSP was found as positive.

scholarly journals Strategic Alliances and Financial Performance: Some Empirical Evidence of Bio-Pharmaceutical Industry

2019 ◽  
Vol 7 (12) ◽  
Author(s):  
Houda Chakir lamrani
Keyword(s):  
Panel Data ◽  
Pharmaceutical Industry ◽  
Financial Performance ◽  
Strategic Alliances ◽  
Strategic Alliance ◽  
Positive Relationship ◽  
Negative Relationship ◽  
High Tech ◽  
Pharmaceutical Companies ◽  
Data Set

Over the last decades, strategic alliance have played an important role among high tech firms, including biotech and pharmaceutical companies, showing an impact on financial performance. This study focuses on this topic and analyses how strategic alliances portfolios and types of the partnerships affect bio-pharmaceutical companies’ financial performances. Drawing upon a panel data set of 158 alliances during the period of 2003-2013, empirical findings highlight that the number of alliances has a negative relationship with financial performance, whereas partnership types such as licensing and co-development have a positive relationship with the financial performance of biotech and pharmaceutical companies.

scholarly journals REINSURANCE UTILISATION AND DEPENDENCE ON THE FINANCIAL PERFORMANCE OF NON-LIFE INSURERS: EVIDENCE FROM NIGERIA

2018 ◽  
Author(s):  
Francis Sewhenu Dansu ◽  
Adebayo Obalola
Keyword(s):  
Growth Rate ◽  
Financial Performance ◽  
Positive Relationship ◽  
Secondary Data ◽  
Coefficient Of Determination ◽  
Loss Ratio ◽  
Significant Positive Relationship ◽  
High Loss ◽  
Life Insurers ◽  
Insurance Firms

Reinsurance is used by primary insurers as a device to cushion the effect of underwriting and solvency risks. However, an overdependence on reinsurance could cause depletion in the income of the primary insurer. The study examined the effect of reinsurance on the financial performance of non-life insurers in Nigeria. Secondary data used for this research were analysed with descriptive statistics, coefficient of determination (R2), and linear regression. Results showed a significant positive relationship between reinsurance utilisation and premium growth rate. Similarly, a significant positive relationship was found between reinsurance dependence and profitability (loss ratio). It was recommended that non-life insurers should embrace more of reinsurance facilities particularly for risks of high loss potentials in order to stabilise premium growth rate. In addition, Insurance firms in Nigeria should harness their claims management activities in order to minimise cost and exposure to underwriting risks.

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