INVESTIGATING BANK MARKET CONCENTRATION IN THE SOUTHERN REGION OF THE UNITED STATES: IMPLICATIONS FOR BANKING STRUCTURE

The objective of this paper is to determine whether commercial banks in the Southern Region of the United States are highly concentrated and hence less competitive in offering favorable lending terms to borrowers and subsequently hindering economic development in their region. The paper employs concentration measures to estimate the concentration degrees of commercial banks in the Southern Region of the United States in 2019. Data for deposits and loans plus leases of banks in 12 states in the South were collected for the year 2019 from the following sources: http://www.ofi.state.la.us/ and http://www.ibanknet.com/. Empirical results show that only commercial bank markets in Kentucky and Florida have perfect competition. The commercial banks in other ten states are either uncompetitive or less competitive, thereby creating adverse economic development environments for prospective corporate and individual borrowers in those states, and consequently impairing the profitability, stability and risk structure of the banking industry in most states covered in the Southern Region. The paper provides a value- added literature contribution to US banking market structure. The next step would be up to state and federal bank regulatory bodies to address the issue in those less competitive states and their potential on economic development in that region.

Overcoming the comparative confusion of the audit committee’s impact on the financial performance of conventional and Islamic banks: An international evidence in a framework of agency theory

Based on the banking and governance literature, the impacts of the audit committee quality on the financial performance of conventional and Islamic banks are mixed, unstable and sometimes contradictory. In this study, we consulted deeply the theoretical foundations of the audit committee quality on the financial performance of conventional and Islamic banks to solve the ambiguity of comparison in a framework of agency theory. Measures of financial performance and audit committee determinants are collected from 30 countries. Under the panel data estimations, data were collected from 112 banks of each type that have published their reports regularly during the period (2010-2019). Overall, we obtained 1120 bank-year observations in each sub-sample. The results showed that the audit committee in conventional banks negatively affected their financial performance. However, in Islamic banks, it revealed a vague impact because of his secondary role.

RELATIONSHIP BETWEEN NATIONAL IMAGE AND FOREIGN DIRECT INVESTMENT AMONG SUB-SAHARAN AFRICA COUNTRIES

Purpose: The purpose of this study was to establish the relationship between National Image and FDI among Sub-Saharan Africa nations. Methodology: This study was based on positivism approach and study used a descriptive cross-sectional design. The population of the study was all of SSA 46 countries and a census survey of all the countries in SSA was done hence no sampling was done. Both primary and secondary data were used in the study. A structured research questionnaire was used in collecting primary data. The questionnaire was administered to the Heads of Foreign Missions of each of the 46 SSA countries in Kenya. Secondary data was used for data on FDI obtained from the UNCTAD publications. Data was then analyzed using descriptive statistics and regression analysis. Testing of hypothesis was done through Adjusted R2 F-ratio test (Analysis of Variance) and regression of the coefficient. Results: The results revealed that the influence of national image on FDI among SSA countries was positive and statistically significant. The results further reveals that 71.8% of changes in FDI is as a result of the national image aspects selected in this study while the remaining 28.2% are elucidated by other aspects not pondered in this model. Independent indicators defining national image had mixed results. Results showed that political dimension influenced FDI positively but it was not statistically significant (B= .236, t= 1.490, sig= .146). Economic dimension influenced FDI positively but it was not statistically significant (B= .104, t= .461, sig= .648). Social dimension of national image influenced FDI positively and it was statistically significant (B= .367, t= 2.368, sig= .024). Technological dimension influenced FDI positively and it was statistically significant (B= .859, t= 5.141, sig= .000). Unique contribution to theory, practice and policy: The findings of this study support the need for Sub-Saharan Africa countries to create a national image individually as countries and as a block as this will go a long way in attracting FDI which will eventually translate to economic development. It is therefore prudent for countries in Sub-Saharan Africa to understand the national image dimensions in the regional context in order to carry out frequent analysis and develop strategic approaches relevant to their FDI competitiveness.

THE EFFECTS OF DONOR FUNDING ON THE PERFORMANCE OF SEXUAL REPRODUCTIVE HEALTH NGOS IN MOMBASA COUNTY

Purpose: Local Non-Governmental Organizations (NGOs) play crucial role in uplifting livelihoods and overall economic development in Kenya. However, several local NGOs have experienced dwindling performance as a result of insufficient donor funding. It is in this vein that the current study assessed the effects of donor funding on the organizational performance of local sexual reproductive health NGOs in Mombasa County. The specific study objectives included; to establish the effect of availability of donor funds, funds management, and capacity building on the performance of local NGOs. Methodology: The study adopted a descriptive survey research design while the target population was all the employees of sexual reproductive health NGOs in Mombasa County. The study used simple random sampling technique. A structured questionnaire was self-administered to all employees of the 14 NGOs. The study utilized descriptive statistics and multiple regression analysis. Diagnostic tests such as normality and multicollinearity were used. Results: The research found that funds’ management, funds’ availability, capacity building, and government policies had positive relationship with NGOs project performance. The study concludes that NGOs had various sources of funding. It concludes that the NGOs ensured funds’ management by employing qualified accounting staff, embracing openness for regular donor evaluations, ensuring financial disclosures to stakeholders. The study concludes that NGOs’ staff had adequate experience in running projects. It was concluded that there was no level business environment for local NGOs, the available government NGO operation policies were unfriendly and the Co-ordination Act needed improvement. Unique contribution to theory, policy and practice: The study recommends that all NGOs should continue sourcing for multiple reliable funders. The study recommend that all NGOs should uphold proper planning for finances, monitoring, evaluation, and budgeting control to ensure accountability to promote successful completion of projects. The study recommends that NGOs’ staff should be subjected to regular timely task-oriented training.

FINANCIAL CONTROL PRACTICES AND FINANCIAL SUSTAINABILITY OF NON GOVERNMENTAL ORGANIZATION IN GARISSA COUNTY, KENYA

Purpose: The current study sought to establish how financial control practices influences financial sustainability of Non-Governmental Organization in Garissa County, Kenya. The study specifically sought to establish how financial reporting, financial monitoring, financial audits and financial risk assessment influences financial sustainability of NGOs. Methodology: The study was anchored on the following theories: Agency Theory, Liquidity Trade-Off Theory, Cash Management Theory And The Rent Theory of Profitability. The study employed a descriptive survey research design and targeted 50 Non-Governmental Organizations operating in Garissa County. The unit of observation comprised of one finance manager and one operational manager from each of the NGO. Both primary and secondary data were used in the study. Structured questionnaires were used in collecting the data. The study employed both inferential and descriptive statistics to analyze the collected data. Both SPSS software and MS Excel was used in generating the statistics. The study conducted a pilot study in 10 NGOs from Wajir County to assess the reliability and validity of the data collection instrument. The results of the study were presented in form of figures and tables. Results: The results of the study revealed that financial reporting, financial monitoring, financial audits and financial risk assessment impacts financial sustainability of NGOs to a positive and significant level as shown by Beta value of 0.317, 0.213, 0.447 and 0.376 respectively. This implies that increase in one unit of each of the variables results to an increase in the financial sustainability levels of NGOs with the respective beta values. Unique contribution to theory, policy and practice The study recommended that there is a need for the NGOs operating in Garissa County to enhance their financial reporting practices, financial monitoring practices, financial audit practices and financial risk assessment practices since the practices bears a positive and a significant effect on financial sustainability of the organization.

Autoregressive Neural Network EURO STOXX 50 Forecasting Model Based on Principal Component Stock Selection

Purpose: The given study looks into forecast accuracy of a traditional ARIMA model while comparing it to Autoregressive Neural Network (AR-NN) model for 984 trading days on EURO STOXX 50 Index. Methodology: A hybrid model is constructed by combining ARIMA model and feed-forward neural network model aiming to attain linear and non-linear price fluctuations. The study also incorporates the investigation of component stock prices of the index, that can be selected to improve the predictability of the hybrid model. Findings:The reached ARIMA (1,1,3) model showed higher scores than AR-NN model however integrating selected exogenous stock prices from the index components gave much notable accuracy results. The selected exogenous stocks were extracted after conducting PCA and model scores were compared via MAPE and RMSE. Unique contribution to theory, practice and policy: The major contribution of this work is to provide the researcher and fnancial analyst a systematic approach for development of intelligent methodology to forecast stock market. This paper also presents the outlines of proposed work with the aim to enhance the performance of existing techniques. Therefore, Empirical analysis is employed along with a hybrid model based on a feed-forward Neural Network. Lesser error is attained on the test set of Index stock price by comparing the performance of ARIMA and AR-NN while forecasting. Hence, The components of extracted Index stock price like exogenous features are added to make an influence from the AR-NN model.

THE INFLUENCE OF INTENAL AUDIT ON FINANCIAL MANAGEMENT IN MARSABIT COUNTY GOVERNMENT- KENYA

Purpose: The purpose of this study was to determine the effect of internal audit on the financial management in the County Government of Marsabit. Methodology: The study adopted descriptive survey was adopted for this study. The targeted study population was 63 staff members who are Job group K and above from the department of Finance in the directorate of Accounts, Revenue, Procurement and Internal Audit. The study employed simple structured questionnaires to gather primary data which was analyzed using SPSS. Results: The study revealed that internal audit function had a significant influence on financial management at the county government of Marsabit (r=0.691, p=0.00) Unique contribution to theory, policy and practice: Good financial management is very essential in protecting the public funds. This study encourages good practices of accountability, transparency and wealth creation with public funds. The study is beneficial to not only Marsabit County but other counties in Kenya. The study concludes that the Marsabit County has a functional internal audit committee and internal auditors perform their duties with great autonomy and independence. The study further concludes that internal audit has strong positive effect on the financial management in Marsabit County. The study recommends internal audit to be well staffed and resourced so that it is able to carry out regular audits of the county government. This will improve financial management of the County Government since it has been established that internal audit has strong positive effect on the financial management. Additional research can be conducted in the National government on factors influencing financial management and drawing comparisons.

Financial Factors Affecting Price-to-Earnings Ratios in Canada

Purpose: The purpose of this study is to ascertain which financial factors affect the price-to-earnings ratios of Canadian firms. Methodology: A sample of 578 Canadian firms, across 11 industries, listed on the Toronto Stock Exchange during 2011 to 2018 is examined. Stock prices and financial statements accounts data is collected from S & P Capital IQ. We compute 27 financial factors to use as independent variables to regress on the price-to-earnings ratio dependent variables employing the Statistical Package for Social Sciences (SPSS) utilizing the software program’s forced, forward, and backward selection methods. Robustness tests are conducted using alternative dates (after the fiscal year end) to discover which model of financial factors best explains the forward price-to-earnings ratio as well as other statistical methods such as analysis of variance. Results: We find a unique model for each of the 3 models based on the forward price-to-earnings ratio date. The financial factors that explain each of the dates after the end of the fiscal year (1 month, 2 months, and 3 months) are the 4 variables: net profit margin, return on investment, total asset turnover, and the natural logarithm of the total assets. For model 3 (1 month after fiscal year end), in addition to the previous 4 factors, the dividends per share is part of the regression equation. All 3 models have strong statistically significant results at an alpha level of one percent. Further, industry effects are deduced and presented. Unique contribution to theory, policy, and practice: The results are unique to a Canadian sample of firms post- International Financial Reporting Standards (IFRS) adoption. Companies can utilize the empirical findings to manage their financial performance to maximize their price-to-earnings ratio. A product of a firm’s higher price-to-earnings ratio is a lower cost of capital which expands the corporation’s investment opportunities. Investors can apply this research to develop investment strategies hinged on price-to-earnings ratios to augment investment returns.

THE RELATIONSHIP BETWEEN LEVERAGE RISK AND PERFORMANCE OF SELECTED REAL ESTATE INVESTMENTS IN MERU COUNTY- KENYA

Purpose: The purpose of this study was to investigate the Influence of leverage risk on performance of selected real estates in Meru County Kenya. Methodology: This study employed a descriptive research design. The target population comprised of 390 real estate owners and the sample size was 197 respondents. Stratified random sampling and purposive sampling procedures were used to select the sample size from the target population. Data was analyzed by use of SPSS version 23. Descriptive statistics and inferential statistics such as Regression, and Analysis of variance (ANOVA) were used to present the results in tables and figures. Results: This study revealed statistically significant relationships between leverage risk and performance of real estate investments. This study established that Leverage risk had a statistically significant influence on real estate investment performance (r=.686, p<0.01), (f=12.29, p<0.01). However, Real estate investments was not affected by market risk since it had the least influence on its performance. Unique contribution to theory, policy and practice: The study added value to Investors on necessity to evaluate leverage risk, as well as maintain a well-balanced capital structure when making real estate investment decisions. There is dire need for central bank of Kenya to amend lending rates specifically on mortgages. The study informed policy decision to the ministry of finance & central bank of Kenya on implementing fiscal and monetary policies that create an enabling environment. A further study on determinants of leverage in real estate investments need to be done.

Stochastic Forecasting of Stock Prices in Nigeria: Application of Geometric Brownian Motion Model

Purpose: The purpose of the study is to model and simulate the trends and behavioral patterns in The Nigerian Stock Market and hence predict the future stock prices within the Geometric Brownian Motion (GBM) framework. Methodology: The methodology involves a comparison of forecasted daily closing prices to actual prices in order to evaluate the accuracy of the prediction model. Based on the model assumptions of the GBM with drift: continuity, normality and Markov tendency, the study investigated four years (2015 - 2018) of historical closing prices of ten stocks listed on The Nigerian Stock Exchange. The sample for this study is based on the most continuously traded stocks. Findings: The results show that in the simulation there are some actual stock prices located outside trajectory realization that may be from GBM model. Thus, the model did not predict accurately the price behavior of some of the listed stocks. The predictive power of the model is declining towards the longer the evaluated time frame proven by the higher value of the mean absolute percentage error. The value of the MAPE is 50% and below for the one- to two-year holding periods, and above 50% for the three-year holding period. Unique Contribution to theory, Practice and Policy: The MAPE and directional prediction accuracy method provide support that over short periods the GBM model is accurate. Meaning that the GBM is a reasonable predictive model for one or two years, but for three years, therefore, it is an inaccurate predictor. It is recommended that the technical analyst whose primary motive is to make gain at the expense of other participants should identify high volatile portfolio in any holding period for effective prediction Investors with long-range holding position as investment strategy should concentrate more on low capitalized stocks rather than stocks with large market capitalization. This is a unique contribution to theory, practice and policy.