Journal of Accounting, Business and Finance Research
Extant literature has globally demonstrated two anomalies of initial public offering stocks perfo... more Extant literature has globally demonstrated two anomalies of initial public offering stocks performance: positive initial returns and long run underperformance. Kenya’s IPO market is experiencing a downward trend. The last issue was in 2015. Bond market has gained traction compared to equity market. Studies have associated firm specific factors to IPO stocks performance and ignored the moderating variable of automation. The study analysed the relationship between firm ownership, board composition and IPO stocks performance at NSE. The percentage of shares owned by the Kenyan government was used to measure firm ownership and board composition was measured by percentage of executive board members to total board members. The performance of IPO stocks was measured using both Cumulative Abnormal Returns and Buy and Hold Abnormal Returns. Automation was measured by IPO stocks performance between pre and post automation period. The sample size was 15 firms which floated shares between 1994...
This study mainly analyzed the concept of corporate governance and it influence on the financial ... more This study mainly analyzed the concept of corporate governance and it influence on the financial growth cooperative societies in Kirinyaga County, Kenya. This study identified some salient aspects of corporate governance and recognized it as one that is more relevant to the distinct governance features of Sacco societies. For this a descriptive research design was used. The population of interest for the study was 31 SACCOs operating in Kirinyaga County. The study targeted 327 members of SACCO's staff. A sample of 104 respondents was randomly selected. The primary data were collected through the administration of questionnaires to the staff of these SACCOs. Data was analysed using a multiple linear regression model. The study indicates that board leadership, financial performance disclosure, corporate social responsibility and compliance with legislation predict financial growth of SACCOs. The study, recommends that the SACCOs should adopt sound financial reporting and disclosur...
At a time of unprecedented global competition, increasing performance is an important objective o... more At a time of unprecedented global competition, increasing performance is an important objective of every company. Many scholars, scientists and experts have devoted their time to revisit this topic due to divergence of the factors determining performance. Companies in Kenya are advancing day and night in terms of technology, institutionalization, and innovation of new services and products. The general objective of the study is to investigate the relationship between share ownership types and firm performance of listed companies in the Nairobi Securities Exchange. The specific objectives for the study are: (1) To evaluate the relationship between individual ownership and firm performance of the firms listed in the Nairobi Securities Exchange; (2) To determine the relationship between foreign ownership and firm performance of the firms listed in the Nairobi Securities Exchange; (3) To establish the relationship between institutional ownership and firm performance of the firms listed ...
The International Journal of Business & Management, Jun 30, 2021
However, the financial performance of a firm is influenced by numerous factors, some internal and... more However, the financial performance of a firm is influenced by numerous factors, some internal and others external. External factors relate to forces beyond the control of the firm, for instance change in government regulation in terms of legal-regulatory framework and both fiscal and monetary changes(Ayuso, Ángel Rodríguez, García-Castro, & Ángel Ariño, 2011). Similar, internal factors commonly referred as the firm characteristics include both financial and non-financial factors. Examples of non-financial related factors are; human resource efficiency and effectiveness and the brand name of the firm, competition faced by a company from its peers and competitors(Madubuko, 2014). According to Kiruri (2013), the financial performance of an organization can be established by examining the firm's profitability, solvency and liquidity. Some of the common measures of profitability are the return on equity (ROE) and the return on assets (ROA) (Charumathi, 2012). Mumo (2017) claims that the performance of an insurance firm when it comes to financial aspects can be measured through net premiums earned, return on equity, annual turnover, return on investment and underwriting activities. The components are classified as profit as well as investment performance measures. The majority of researchers conducting studies in the field of insurance have done study on how the industry can become profitable. According to Ngwili (2014), the financial performance of a company in the insurance sector has a negative relationship with leverage. Firm management and its effectiveness in contributing to financial performance is a reflection of growth and development within an organization. Most of the organization in the insurance sector measure profitability through liquidity, firm size and leverage. In a broader sense, financial performance ensures that the objectives of the company are accomplished and the goals are achieved successfully. Based on this argument the study analyzed asset tangibility, liquidity, leverage, age, Equity Capital are all specific to individual firms. Despite various reforms done to improve the financial performance in Kenya, regrettably the financial performance of insurance companies in Kenya has been on a declining trend for the period 2010-2016(Insurance Regulatory Authority, 2016). This trend explains the high rate of insurance firms falling into receivership and liquidation problems. More than eight insurers have been put under statutory management since 2008(Insurance Regulatory authority, 2013). These worrying statistics are peculiar to the insurance sector since the commercial banks and SACCOs statistics support a different narrative(Sing'ombe, 2016). Therefore, the question that begs for answers is what specific
This article aims to describe the development of advanced writing skills –realized in clausal com... more This article aims to describe the development of advanced writing skills –realized in clausal complexity and in the use of specialized linguistic resources– in the writings of a group of college second language learners. This study is relevant in light of the difficulties that most intermediate language learners find in their transition to higher levels of proficiency. Traditional ways of approaching writing in collegiate contexts have adhered for a long time to the idea that people learn to write by writing. The application of a genre-based perspective in second language writing scaffolds the progression of second language learners towards a gradual construction of complexity in written texts as they are exposed to logical sequences of genres considered relevant to the target culture. The study examines second language learning through writing as a cumulative process of building up complexity in terms of the acquisition of an intermediate accuracy in semantics, grammar and lexis th...
Increasing adoption of International Financial Reporting Standards (IFRS) among developed and dev... more Increasing adoption of International Financial Reporting Standards (IFRS) among developed and developing economies as well as stock markets around the world is probably connected to benefits it offers. Therefore, it is found necessary to examine its influence on value relevance at the Nigerian stock market. Panel data were sourced from sixty-nine Nigerian listed firms for a period of four years of IFRS adoption at the Nigerian stock market (i.e. 2012-2015), leading to 276 firm-year observations. Using 503 IFRS/IAS disclosure items, descriptive results revealed 66% and 99.4% minimum and maximum compliance level by the sampled firms with 91% overall compliance. Consistently with prior studies, results of the panel regression model indicate that greater compliance with IFRS mandatory disclosure requirements is positive and significantly value relevant at the Nigerian stock market but more for financial industry category. Thus, the study recommends that stock market regulators and accou...
Globalization brings in new technology and makes a developing country open to greater competition... more Globalization brings in new technology and makes a developing country open to greater competition. These changes in business environment have brought about changes in some firms characteristics. A structure questionnaire asking the respondents about changes in their firms characteristics and management accounting practices over a period of five years(2011-2015) was administered once among the management accountants/finance controllers of 154 manufacturing companies in Nigeria which are not listed on Nigeria Stock Exchange. 133 useful responses were subjected to factor analysis, reliability test and logistic regression. Factor loading of 0.4 was used as a threshold for factor analysis and 0.7 cronbach's Alpha was used for reliability tests. The study found out that manufacturing companies in Nigeria were not exempted from dynamic business environment as they increasingly used their competitive strategy, culture and Advanced Manufacturing Technology. The study established that fir...
International Journal of Academic Research in Accounting, Finance and Management Sciences, 2021
Deposit taking microfinance banks plays a major role in boosting the economy of a country, improv... more Deposit taking microfinance banks plays a major role in boosting the economy of a country, improving the standard of living of people and alleviating poverty more especially in developing countries. The study sought to determine the influence of credit risk on financial performance of deposit taking microfinance banks in Kenya. The independent variable in this study was credit risk proxied by Capital to risk weighted assets and non-Performing loan ratio while dependent variable was financial performance measured by return on equity. The study adopted Panel data regression using ordinary Least Squares (OLS) methods/ design. The target population of the study was 13 deposit taking microfinance banks regularized and licensed by Central Bank of Kenya (CBK) by 2017. However due to insufficient data (information) 4 Deposit taking microfinance banks were removed. The study analyzed 9 Banks s for the period of 7 years (2011 to 2017). Secondary data was used in order to capture the relationship between credit risk and performance of deposit taking microfinance banks in Kenya. The data was analyzed using Descriptive statistics, correlation analysis and panel regression analysis. Statistical software's Eview version 8 was used to estimate the relationship between the study variables. The autocorrelation among the regression model was tested using Durbin-Watson factors. The augmented Dickey Fuller (ADF) unit root test was used with the null hypothesis for acceptance (non-stationarity) or rejection (stationality). Regression result indicated that credit risk had a positive and statistically significant effect on financial performance of deposit taking microfinance banks in Kenya. The study recommends that further studies should be conducted to determine the effect of credit on financial performance of deposit taking microfinance banks using more credit variables and longer time of period, in addition there is need to analyze the influence of credit risk on other financial institutions like SACCOs and commercial banks. Furthermore, researches on other risks which include, market risk, interest rate risk, liquidity risk, strategic, Compliance and legal needs to be investigated since they are not included in the study.
The International Journal of Business & Management, 2021
Lewllen,2001). But several studies in the developed capital markets found that many phenomena reg... more Lewllen,2001). But several studies in the developed capital markets found that many phenomena regarding stock investment decisions cannot be explained. Investors in capital asset exchanges, typically take many different and important decisions, the most common are taking investment decisions in order to maximize their wealth; while others deal with considerations seeking market timing techniques to maximize their wealth. In determining influence of behavioral biases on investment decisions of individual investors in NSE also several independent variables were taken into account. These are fear of regrets bias, human availability heuristics bias, mental accounting bias, and anchoring and herd mentality bias. These independent variables were expected to have either a positive or negative effect on the investment decisions of individual investors in NSE. This study therefore sought to answer the following research question;-was there any relationship between behavioral biases and investment decisions of individual investors in the NSE. In answering the above question, both qualitative and quantitative approach was used to develop the concept of the research (Creswell, 2003). A study of related relevant literature formed the major parts of this research and the result was presented using statistical tables. The main objective of this study was to establish whether the behavioral biases and investment decisions had an influence on individual investors in Nairobi Security Exchange (NSE).; hence, several studies had different results in identifying any of those factors as the most influential on stock investment decisions in the other markets. This study examined the effect of the following behavioral biases on individual investment decisions. These biases were; fear of regrets bias (Shiller, 1995), human availability heuristics bias (Hirshleifer,2001), mental accounting bias (Thaler, 2006), anchoring bias (Kahnman & Riepe, 1998) and herd mentality (Shiller et al., 2004). 1.1.1. Behavioral Biases Behavioral bias was defined by Shefrin, (2000) as "a rapidly growing area that deals with the influence of psychology on the behavior of financial practitioners". Individual stock investments behavior was concerned with choices about purchases of small amounts of securities for his or her own account (Nofsinger and Richard, 2002). No matter how much an investor was well informed, had done research, studied deeply about the stock before investing, he also behaves irrationally with the fear of loss in the future. This different behavior in the individual investors is caused by various factors which compromise the investor rationality. Several studies in the context of the stock markets on behavioral biases show that investors are greatly influenced by their behavioral characteristics. Ariely, Loewenstin, Prelec (2006), for instance, argue that the judgement of the fundamental values of assets is a tough task, so investors are likely to value their assets in relative terms, and mostly become anchored to the previous buying prices. Similarly, Barber, Odean, and Zhu (2009) found out that the investors are likely to buy `` attention grabbing'' or `` in new stock'' because these stocks are easily to recall. Moreover, the investors tended to buy previously owned stocks because they could easily recall them and had some information about them (Mutswenje, 2017). Fear of Regret Bias, according to Shiller, (1995), human beings had the tendency to feel the pain or the fear of regret at having made errors. As such, to avoid the pain of regret, people tended to alter their behavior which ended up being irrational at times. Linked with fear of regret was a cognitive dissonance, which was the mental suffering that people experience when they were presented with the evidence that their beliefs were wrong, (Odean,1998). People could be subjected to behavioral biases during decision making which prevented them from making rational decisions (Shefrin, 2000). Disposition bias was the tendency of individual investors to sell investments that were performing well too soon and hold on losing stock too long. In disposition bias people avoided action that created fear of regrets and sought actions that caused pride. Nofsinger, (2005) found that selling an increasing stock qualifies a good choice to buy that stock in the initial instance and brought pride. Doing away with an underperforming stock led to the realization that the initial choice to buy it was not good, and thus brought about fear of regrets found in the USA. Human Availability Heuristics Bias could be viewed as mental short cuts used to ease the cognitive load of making a decision or finding a satisfactory solution for a problem. Examples of this method included use a rule of thumb, or common sense. These rules worked well under most circumstances, but in certain cases led to systematic errors or cognitive biases-(Kahneman & Tversky,1974). Cognitive biases were a pattern of deviation from rational behavior in conclusion that occurred in specific situations. In a context where those specific situations occurred, such was the case of behavioral bias, human beings were considered as predictably irrational decision makers. Therefore, behavioral bias suggested that a new framework was to think about investors' behavior on investment decisions. Self-deception was a process which involved convincing oneself of a truth (or lack of truth) so that one does not reveal any self-knowledge of the deception. One deceived oneself to trust something that was not true as to better convince others of the truth. The biologist Trivers, (1991) suggested that deception plays a significant part in human behavior and communication (as in animal behavior in general). According to Trivers, (1991) self-deception has evolved so that one has an advantage over another:-the ability to read subtle cues such as facial expression, eye contact, posture, tone of voice, and speech tempo to infer the mental states of the other individuals. In Trivers self-deception theory, individuals are designed to think they are better (smarter, stronger, better friends) than they were because this helps individual fool others about these qualities. According to Hirshleifer (2001), most known judgments and decision biases had three common roots;-availability heuristic simplification. Availability Heuristic simplification happened when cognitive resource constraints (like read limitation attention, processing power and memory) force the use of human availability heuristics bias were used to make decisions. Another source of bias was that we were subject to emotions that could overpower reason. An evolutionary rationale for a lack of self-control was that emotions such as love and rage could act as mechanism that allowed credible THE INTERNATIONAL JOURNAL OF BUSINESS & MANAGEMENT
The main objective of this paper is to examine the effect of financial performance on capital str... more The main objective of this paper is to examine the effect of financial performance on capital structure of listed non-financial firms in Nigeria. This was guided by assessing the earnings per share on capital structure choice. The causal research design was adopted while a total of 87 samples was included in the study. The estimated results are statistically significant at all levels of Capital Structure. Based on the significance of these results it was concluded that both the efficiency risk and franchise value hypotheses of the reverse causality hypothesis are observable in the capital structure choice of the firms.
As a catalyst, in the economic development of the developed and developing countries, small and m... more As a catalyst, in the economic development of the developed and developing countries, small and medium scale enterprises are crucial. Despite the fact that the SMEs in Nigeria constitute more than 90% of Nigerian businesses, their contribution to the nation’s GDP is below 10%. To investigate the effect of financial liberialization, the classical linear regression model is applied and the ordinary least square econometric technique is also used to estimate the impact of exchange rate on economic growth. The variables used are return on asset employed as the dependent variables, Interest rate, real exchange rates, and domestic credit to SME as independent variables. Economic test shows the a priori criteria of the parameters used to determine if it conforms to the economic theory. The statistical criteria employed are the F test, T-test and R2 which test the significance of the parameters. The econometric (second order test) used are the Durbin Watson test, which test for autocorrelat...
The main objective of this study was to investigate the effects of Corporate Governance on the fi... more The main objective of this study was to investigate the effects of Corporate Governance on the financial performance of listed insurance companies in Kenya. Specifically, this study examined board size, board composition, CEO duality and leverage and how they affect the financial performance of listed insurance Companies in Kenya. Firm performance was measured using Return on Assets (ROA) and Return on Equity (ROE). This study adopted a descriptive research design. The study population was all those insurance Companies which were quoted on the Nairobi Securities Exchange as at December 2012. The primary data were collected through the administration of questionnaires to the staff in these listed insurance firms. Stratified random sampling technique was used to obtain the sample staff for the purpose of administering questionnaires. Secondary data were collected using documentary information from Company annual accounts for the period 2007 to 2011. Reliability test was carried o...
The proportion of bank lending to the agricultural sector is generally low across the globe, and ... more The proportion of bank lending to the agricultural sector is generally low across the globe, and the situation is no different in Kenya. This is despite the fact that commercial banks have continued to launch tailor-made loan products that target specific groups in the sector. Studies acknowledging low credit volume in the sector have mostly focused on supply side factors that account for the status. This paper investigated mobile banking technology adoption as a factor influencing the level of agricultural credit demand by agricultural households. Using data from dairy farmers, the study explored the relationship between an individual’s espousal of mobile banking technology and the likelihood to access a commercial bank loan through the mobilebanking platform. Specific social-demographic factors were hypothesized to moderate the relationship between mobile-banking technology adoption and credit access. The study was anchored on the fact that the world is swiftly transiting from an ...
This study looked into the determinants of Diaspora remittances on economic growth in Kenya .The ... more This study looked into the determinants of Diaspora remittances on economic growth in Kenya .The dependent variable in this study was economic growth while the independent variables were, Inflation (INF), government development expenditure, and trade openness. Monthly percentage data was collected and obtained from the Kenya bureau of Statistics and Central bank of Kenya databases. Secondary data was collected from Kenya for the period 2005-2014. To analyze the data, the study adopted a dynamic econometric model and ran a vector auto regression. The data was analyzed in E views. This study found government expenditure (DEVEX) and inflation rates having a statistically significant impact on economic growth. DEVEX when exposed to shocks revealed more influences on variations in RGDP in long run at 11.22% as compared to shock in the short term that only would account for 0.37% variations in RGDP. Generally the study concluded that the impact of remittances flows on macroeconomic perfor...
This study sought to identify the bank-specific determinants of commercial banks financial stabil... more This study sought to identify the bank-specific determinants of commercial banks financial stability in Kenya. This was achieved by examining the effect of; regulatory capital, credit exposure, bank funding, bank size and corporate governance variables on banks financial stability. Altman’s Z-Score plus Model for non-US and non-manufacturing firms was adopted as a measure of banks financial stability. Secondary panel data contained in the annual reports and financial statements of study population which consisted of all commercial in Kenya licensed by Central Bank of Kenya for period year 2000 to year 2015 was collected and used for analysis. A census of all 39 commercial banks and quantitative research design was adopted. The study adopted panel regression to capture both cross sectional and longitudinal data characteristics. Specified panel regression model for fixed effects supported by the Hausman test results was estimated. Panel Generalized Method of Moments (GMM) regression...
This paper examines the effect of voluntary disclosure of financial and capital market data on ea... more This paper examines the effect of voluntary disclosure of financial and capital market data on earnings management among listed firms at the Uganda Securities Exchange. The paper is premised on the idea that the provision of voluntary disclosure of financial and capital market data contributes to the reduction of information asymmetry and that lower information asymmetry makes it more difficult for managers to engage in earnings management practices. We proxy earnings management following the modified Jones model (Dechow, Sloan, & Sweeney, 1995) and use annual reports of 9 listed non-financial firms at the Uganda Securities Exchange for the period 2012 to 2017. Applying robust regression analysis, we find that voluntary disclosure of financial and capital market data is positively and insignificantly related to earnings management. This suggests that the disclosure of financial and capital market data in the annual reports of listed firms at the Uganda Securities Exchange doesn’t ...
The study examined the effect of foreign equity flows on stock market volatility in Kenya. The ef... more The study examined the effect of foreign equity flows on stock market volatility in Kenya. The effect of foreign equity purchases and sales turn-over and foreign equity purchases and sales volume on stock market volatility in Kenya were established. The moderating effect of foreign exchange rate on the effect of foreign equity flows on stock market volatility was also analysed in the study. The study was undertaken at the Nairobi Securities Exchange for a period of eight years from 2008 to 2015. Causal research design was used. The target population of the study were the monthly foreign equity flows, monthly NSE-20 share indices, monthly USD Bid-Ask FOREX. Time series secondary data was used in the study. The data was subjected to diagnostic tests such as linearity, multi-collinearity, normality, homoscedasticity tests and test for auto-correlation with E-views being the main statistical tool of analysis. The main model used in the study was the vector error correction model subsequ...
Strategic Journal of Business & Change Management, 2017
The main objective of the study was to determine the factors influencing the growth of Safaricom ... more The main objective of the study was to determine the factors influencing the growth of Safaricom M-pesa service with specific reference to Nairobi County. The mobile money sector in Kenya and globally is growing at a tremendous rate and each and every month new aggressive and excessive rate innovative players enter the sector with new standard ways of providing customer satisfaction solutions. It is therefore important for every player in the sector to understand the factors affecting the mobile money transfer services through an understanding of the kind of business we are in and the challenges facing it. Most of the existing research and literature of M-pesa has focused on how and why customers use the product, strategies used by M-pesa to remain the most successful mobile money transfer service globally and its impact on financial inclusion in Kenya. None of the studies has been done in relation to the influence of M-pesa usage convenience and efficiency in the growth of M-pesa s...
Journal of Accounting, Business and Finance Research
Extant literature has globally demonstrated two anomalies of initial public offering stocks perfo... more Extant literature has globally demonstrated two anomalies of initial public offering stocks performance: positive initial returns and long run underperformance. Kenya’s IPO market is experiencing a downward trend. The last issue was in 2015. Bond market has gained traction compared to equity market. Studies have associated firm specific factors to IPO stocks performance and ignored the moderating variable of automation. The study analysed the relationship between firm ownership, board composition and IPO stocks performance at NSE. The percentage of shares owned by the Kenyan government was used to measure firm ownership and board composition was measured by percentage of executive board members to total board members. The performance of IPO stocks was measured using both Cumulative Abnormal Returns and Buy and Hold Abnormal Returns. Automation was measured by IPO stocks performance between pre and post automation period. The sample size was 15 firms which floated shares between 1994...
This study mainly analyzed the concept of corporate governance and it influence on the financial ... more This study mainly analyzed the concept of corporate governance and it influence on the financial growth cooperative societies in Kirinyaga County, Kenya. This study identified some salient aspects of corporate governance and recognized it as one that is more relevant to the distinct governance features of Sacco societies. For this a descriptive research design was used. The population of interest for the study was 31 SACCOs operating in Kirinyaga County. The study targeted 327 members of SACCO's staff. A sample of 104 respondents was randomly selected. The primary data were collected through the administration of questionnaires to the staff of these SACCOs. Data was analysed using a multiple linear regression model. The study indicates that board leadership, financial performance disclosure, corporate social responsibility and compliance with legislation predict financial growth of SACCOs. The study, recommends that the SACCOs should adopt sound financial reporting and disclosur...
At a time of unprecedented global competition, increasing performance is an important objective o... more At a time of unprecedented global competition, increasing performance is an important objective of every company. Many scholars, scientists and experts have devoted their time to revisit this topic due to divergence of the factors determining performance. Companies in Kenya are advancing day and night in terms of technology, institutionalization, and innovation of new services and products. The general objective of the study is to investigate the relationship between share ownership types and firm performance of listed companies in the Nairobi Securities Exchange. The specific objectives for the study are: (1) To evaluate the relationship between individual ownership and firm performance of the firms listed in the Nairobi Securities Exchange; (2) To determine the relationship between foreign ownership and firm performance of the firms listed in the Nairobi Securities Exchange; (3) To establish the relationship between institutional ownership and firm performance of the firms listed ...
The International Journal of Business & Management, Jun 30, 2021
However, the financial performance of a firm is influenced by numerous factors, some internal and... more However, the financial performance of a firm is influenced by numerous factors, some internal and others external. External factors relate to forces beyond the control of the firm, for instance change in government regulation in terms of legal-regulatory framework and both fiscal and monetary changes(Ayuso, Ángel Rodríguez, García-Castro, & Ángel Ariño, 2011). Similar, internal factors commonly referred as the firm characteristics include both financial and non-financial factors. Examples of non-financial related factors are; human resource efficiency and effectiveness and the brand name of the firm, competition faced by a company from its peers and competitors(Madubuko, 2014). According to Kiruri (2013), the financial performance of an organization can be established by examining the firm's profitability, solvency and liquidity. Some of the common measures of profitability are the return on equity (ROE) and the return on assets (ROA) (Charumathi, 2012). Mumo (2017) claims that the performance of an insurance firm when it comes to financial aspects can be measured through net premiums earned, return on equity, annual turnover, return on investment and underwriting activities. The components are classified as profit as well as investment performance measures. The majority of researchers conducting studies in the field of insurance have done study on how the industry can become profitable. According to Ngwili (2014), the financial performance of a company in the insurance sector has a negative relationship with leverage. Firm management and its effectiveness in contributing to financial performance is a reflection of growth and development within an organization. Most of the organization in the insurance sector measure profitability through liquidity, firm size and leverage. In a broader sense, financial performance ensures that the objectives of the company are accomplished and the goals are achieved successfully. Based on this argument the study analyzed asset tangibility, liquidity, leverage, age, Equity Capital are all specific to individual firms. Despite various reforms done to improve the financial performance in Kenya, regrettably the financial performance of insurance companies in Kenya has been on a declining trend for the period 2010-2016(Insurance Regulatory Authority, 2016). This trend explains the high rate of insurance firms falling into receivership and liquidation problems. More than eight insurers have been put under statutory management since 2008(Insurance Regulatory authority, 2013). These worrying statistics are peculiar to the insurance sector since the commercial banks and SACCOs statistics support a different narrative(Sing'ombe, 2016). Therefore, the question that begs for answers is what specific
This article aims to describe the development of advanced writing skills –realized in clausal com... more This article aims to describe the development of advanced writing skills –realized in clausal complexity and in the use of specialized linguistic resources– in the writings of a group of college second language learners. This study is relevant in light of the difficulties that most intermediate language learners find in their transition to higher levels of proficiency. Traditional ways of approaching writing in collegiate contexts have adhered for a long time to the idea that people learn to write by writing. The application of a genre-based perspective in second language writing scaffolds the progression of second language learners towards a gradual construction of complexity in written texts as they are exposed to logical sequences of genres considered relevant to the target culture. The study examines second language learning through writing as a cumulative process of building up complexity in terms of the acquisition of an intermediate accuracy in semantics, grammar and lexis th...
Increasing adoption of International Financial Reporting Standards (IFRS) among developed and dev... more Increasing adoption of International Financial Reporting Standards (IFRS) among developed and developing economies as well as stock markets around the world is probably connected to benefits it offers. Therefore, it is found necessary to examine its influence on value relevance at the Nigerian stock market. Panel data were sourced from sixty-nine Nigerian listed firms for a period of four years of IFRS adoption at the Nigerian stock market (i.e. 2012-2015), leading to 276 firm-year observations. Using 503 IFRS/IAS disclosure items, descriptive results revealed 66% and 99.4% minimum and maximum compliance level by the sampled firms with 91% overall compliance. Consistently with prior studies, results of the panel regression model indicate that greater compliance with IFRS mandatory disclosure requirements is positive and significantly value relevant at the Nigerian stock market but more for financial industry category. Thus, the study recommends that stock market regulators and accou...
Globalization brings in new technology and makes a developing country open to greater competition... more Globalization brings in new technology and makes a developing country open to greater competition. These changes in business environment have brought about changes in some firms characteristics. A structure questionnaire asking the respondents about changes in their firms characteristics and management accounting practices over a period of five years(2011-2015) was administered once among the management accountants/finance controllers of 154 manufacturing companies in Nigeria which are not listed on Nigeria Stock Exchange. 133 useful responses were subjected to factor analysis, reliability test and logistic regression. Factor loading of 0.4 was used as a threshold for factor analysis and 0.7 cronbach's Alpha was used for reliability tests. The study found out that manufacturing companies in Nigeria were not exempted from dynamic business environment as they increasingly used their competitive strategy, culture and Advanced Manufacturing Technology. The study established that fir...
International Journal of Academic Research in Accounting, Finance and Management Sciences, 2021
Deposit taking microfinance banks plays a major role in boosting the economy of a country, improv... more Deposit taking microfinance banks plays a major role in boosting the economy of a country, improving the standard of living of people and alleviating poverty more especially in developing countries. The study sought to determine the influence of credit risk on financial performance of deposit taking microfinance banks in Kenya. The independent variable in this study was credit risk proxied by Capital to risk weighted assets and non-Performing loan ratio while dependent variable was financial performance measured by return on equity. The study adopted Panel data regression using ordinary Least Squares (OLS) methods/ design. The target population of the study was 13 deposit taking microfinance banks regularized and licensed by Central Bank of Kenya (CBK) by 2017. However due to insufficient data (information) 4 Deposit taking microfinance banks were removed. The study analyzed 9 Banks s for the period of 7 years (2011 to 2017). Secondary data was used in order to capture the relationship between credit risk and performance of deposit taking microfinance banks in Kenya. The data was analyzed using Descriptive statistics, correlation analysis and panel regression analysis. Statistical software's Eview version 8 was used to estimate the relationship between the study variables. The autocorrelation among the regression model was tested using Durbin-Watson factors. The augmented Dickey Fuller (ADF) unit root test was used with the null hypothesis for acceptance (non-stationarity) or rejection (stationality). Regression result indicated that credit risk had a positive and statistically significant effect on financial performance of deposit taking microfinance banks in Kenya. The study recommends that further studies should be conducted to determine the effect of credit on financial performance of deposit taking microfinance banks using more credit variables and longer time of period, in addition there is need to analyze the influence of credit risk on other financial institutions like SACCOs and commercial banks. Furthermore, researches on other risks which include, market risk, interest rate risk, liquidity risk, strategic, Compliance and legal needs to be investigated since they are not included in the study.
The International Journal of Business & Management, 2021
Lewllen,2001). But several studies in the developed capital markets found that many phenomena reg... more Lewllen,2001). But several studies in the developed capital markets found that many phenomena regarding stock investment decisions cannot be explained. Investors in capital asset exchanges, typically take many different and important decisions, the most common are taking investment decisions in order to maximize their wealth; while others deal with considerations seeking market timing techniques to maximize their wealth. In determining influence of behavioral biases on investment decisions of individual investors in NSE also several independent variables were taken into account. These are fear of regrets bias, human availability heuristics bias, mental accounting bias, and anchoring and herd mentality bias. These independent variables were expected to have either a positive or negative effect on the investment decisions of individual investors in NSE. This study therefore sought to answer the following research question;-was there any relationship between behavioral biases and investment decisions of individual investors in the NSE. In answering the above question, both qualitative and quantitative approach was used to develop the concept of the research (Creswell, 2003). A study of related relevant literature formed the major parts of this research and the result was presented using statistical tables. The main objective of this study was to establish whether the behavioral biases and investment decisions had an influence on individual investors in Nairobi Security Exchange (NSE).; hence, several studies had different results in identifying any of those factors as the most influential on stock investment decisions in the other markets. This study examined the effect of the following behavioral biases on individual investment decisions. These biases were; fear of regrets bias (Shiller, 1995), human availability heuristics bias (Hirshleifer,2001), mental accounting bias (Thaler, 2006), anchoring bias (Kahnman & Riepe, 1998) and herd mentality (Shiller et al., 2004). 1.1.1. Behavioral Biases Behavioral bias was defined by Shefrin, (2000) as "a rapidly growing area that deals with the influence of psychology on the behavior of financial practitioners". Individual stock investments behavior was concerned with choices about purchases of small amounts of securities for his or her own account (Nofsinger and Richard, 2002). No matter how much an investor was well informed, had done research, studied deeply about the stock before investing, he also behaves irrationally with the fear of loss in the future. This different behavior in the individual investors is caused by various factors which compromise the investor rationality. Several studies in the context of the stock markets on behavioral biases show that investors are greatly influenced by their behavioral characteristics. Ariely, Loewenstin, Prelec (2006), for instance, argue that the judgement of the fundamental values of assets is a tough task, so investors are likely to value their assets in relative terms, and mostly become anchored to the previous buying prices. Similarly, Barber, Odean, and Zhu (2009) found out that the investors are likely to buy `` attention grabbing'' or `` in new stock'' because these stocks are easily to recall. Moreover, the investors tended to buy previously owned stocks because they could easily recall them and had some information about them (Mutswenje, 2017). Fear of Regret Bias, according to Shiller, (1995), human beings had the tendency to feel the pain or the fear of regret at having made errors. As such, to avoid the pain of regret, people tended to alter their behavior which ended up being irrational at times. Linked with fear of regret was a cognitive dissonance, which was the mental suffering that people experience when they were presented with the evidence that their beliefs were wrong, (Odean,1998). People could be subjected to behavioral biases during decision making which prevented them from making rational decisions (Shefrin, 2000). Disposition bias was the tendency of individual investors to sell investments that were performing well too soon and hold on losing stock too long. In disposition bias people avoided action that created fear of regrets and sought actions that caused pride. Nofsinger, (2005) found that selling an increasing stock qualifies a good choice to buy that stock in the initial instance and brought pride. Doing away with an underperforming stock led to the realization that the initial choice to buy it was not good, and thus brought about fear of regrets found in the USA. Human Availability Heuristics Bias could be viewed as mental short cuts used to ease the cognitive load of making a decision or finding a satisfactory solution for a problem. Examples of this method included use a rule of thumb, or common sense. These rules worked well under most circumstances, but in certain cases led to systematic errors or cognitive biases-(Kahneman & Tversky,1974). Cognitive biases were a pattern of deviation from rational behavior in conclusion that occurred in specific situations. In a context where those specific situations occurred, such was the case of behavioral bias, human beings were considered as predictably irrational decision makers. Therefore, behavioral bias suggested that a new framework was to think about investors' behavior on investment decisions. Self-deception was a process which involved convincing oneself of a truth (or lack of truth) so that one does not reveal any self-knowledge of the deception. One deceived oneself to trust something that was not true as to better convince others of the truth. The biologist Trivers, (1991) suggested that deception plays a significant part in human behavior and communication (as in animal behavior in general). According to Trivers, (1991) self-deception has evolved so that one has an advantage over another:-the ability to read subtle cues such as facial expression, eye contact, posture, tone of voice, and speech tempo to infer the mental states of the other individuals. In Trivers self-deception theory, individuals are designed to think they are better (smarter, stronger, better friends) than they were because this helps individual fool others about these qualities. According to Hirshleifer (2001), most known judgments and decision biases had three common roots;-availability heuristic simplification. Availability Heuristic simplification happened when cognitive resource constraints (like read limitation attention, processing power and memory) force the use of human availability heuristics bias were used to make decisions. Another source of bias was that we were subject to emotions that could overpower reason. An evolutionary rationale for a lack of self-control was that emotions such as love and rage could act as mechanism that allowed credible THE INTERNATIONAL JOURNAL OF BUSINESS & MANAGEMENT
The main objective of this paper is to examine the effect of financial performance on capital str... more The main objective of this paper is to examine the effect of financial performance on capital structure of listed non-financial firms in Nigeria. This was guided by assessing the earnings per share on capital structure choice. The causal research design was adopted while a total of 87 samples was included in the study. The estimated results are statistically significant at all levels of Capital Structure. Based on the significance of these results it was concluded that both the efficiency risk and franchise value hypotheses of the reverse causality hypothesis are observable in the capital structure choice of the firms.
As a catalyst, in the economic development of the developed and developing countries, small and m... more As a catalyst, in the economic development of the developed and developing countries, small and medium scale enterprises are crucial. Despite the fact that the SMEs in Nigeria constitute more than 90% of Nigerian businesses, their contribution to the nation’s GDP is below 10%. To investigate the effect of financial liberialization, the classical linear regression model is applied and the ordinary least square econometric technique is also used to estimate the impact of exchange rate on economic growth. The variables used are return on asset employed as the dependent variables, Interest rate, real exchange rates, and domestic credit to SME as independent variables. Economic test shows the a priori criteria of the parameters used to determine if it conforms to the economic theory. The statistical criteria employed are the F test, T-test and R2 which test the significance of the parameters. The econometric (second order test) used are the Durbin Watson test, which test for autocorrelat...
The main objective of this study was to investigate the effects of Corporate Governance on the fi... more The main objective of this study was to investigate the effects of Corporate Governance on the financial performance of listed insurance companies in Kenya. Specifically, this study examined board size, board composition, CEO duality and leverage and how they affect the financial performance of listed insurance Companies in Kenya. Firm performance was measured using Return on Assets (ROA) and Return on Equity (ROE). This study adopted a descriptive research design. The study population was all those insurance Companies which were quoted on the Nairobi Securities Exchange as at December 2012. The primary data were collected through the administration of questionnaires to the staff in these listed insurance firms. Stratified random sampling technique was used to obtain the sample staff for the purpose of administering questionnaires. Secondary data were collected using documentary information from Company annual accounts for the period 2007 to 2011. Reliability test was carried o...
The proportion of bank lending to the agricultural sector is generally low across the globe, and ... more The proportion of bank lending to the agricultural sector is generally low across the globe, and the situation is no different in Kenya. This is despite the fact that commercial banks have continued to launch tailor-made loan products that target specific groups in the sector. Studies acknowledging low credit volume in the sector have mostly focused on supply side factors that account for the status. This paper investigated mobile banking technology adoption as a factor influencing the level of agricultural credit demand by agricultural households. Using data from dairy farmers, the study explored the relationship between an individual’s espousal of mobile banking technology and the likelihood to access a commercial bank loan through the mobilebanking platform. Specific social-demographic factors were hypothesized to moderate the relationship between mobile-banking technology adoption and credit access. The study was anchored on the fact that the world is swiftly transiting from an ...
This study looked into the determinants of Diaspora remittances on economic growth in Kenya .The ... more This study looked into the determinants of Diaspora remittances on economic growth in Kenya .The dependent variable in this study was economic growth while the independent variables were, Inflation (INF), government development expenditure, and trade openness. Monthly percentage data was collected and obtained from the Kenya bureau of Statistics and Central bank of Kenya databases. Secondary data was collected from Kenya for the period 2005-2014. To analyze the data, the study adopted a dynamic econometric model and ran a vector auto regression. The data was analyzed in E views. This study found government expenditure (DEVEX) and inflation rates having a statistically significant impact on economic growth. DEVEX when exposed to shocks revealed more influences on variations in RGDP in long run at 11.22% as compared to shock in the short term that only would account for 0.37% variations in RGDP. Generally the study concluded that the impact of remittances flows on macroeconomic perfor...
This study sought to identify the bank-specific determinants of commercial banks financial stabil... more This study sought to identify the bank-specific determinants of commercial banks financial stability in Kenya. This was achieved by examining the effect of; regulatory capital, credit exposure, bank funding, bank size and corporate governance variables on banks financial stability. Altman’s Z-Score plus Model for non-US and non-manufacturing firms was adopted as a measure of banks financial stability. Secondary panel data contained in the annual reports and financial statements of study population which consisted of all commercial in Kenya licensed by Central Bank of Kenya for period year 2000 to year 2015 was collected and used for analysis. A census of all 39 commercial banks and quantitative research design was adopted. The study adopted panel regression to capture both cross sectional and longitudinal data characteristics. Specified panel regression model for fixed effects supported by the Hausman test results was estimated. Panel Generalized Method of Moments (GMM) regression...
This paper examines the effect of voluntary disclosure of financial and capital market data on ea... more This paper examines the effect of voluntary disclosure of financial and capital market data on earnings management among listed firms at the Uganda Securities Exchange. The paper is premised on the idea that the provision of voluntary disclosure of financial and capital market data contributes to the reduction of information asymmetry and that lower information asymmetry makes it more difficult for managers to engage in earnings management practices. We proxy earnings management following the modified Jones model (Dechow, Sloan, & Sweeney, 1995) and use annual reports of 9 listed non-financial firms at the Uganda Securities Exchange for the period 2012 to 2017. Applying robust regression analysis, we find that voluntary disclosure of financial and capital market data is positively and insignificantly related to earnings management. This suggests that the disclosure of financial and capital market data in the annual reports of listed firms at the Uganda Securities Exchange doesn’t ...
The study examined the effect of foreign equity flows on stock market volatility in Kenya. The ef... more The study examined the effect of foreign equity flows on stock market volatility in Kenya. The effect of foreign equity purchases and sales turn-over and foreign equity purchases and sales volume on stock market volatility in Kenya were established. The moderating effect of foreign exchange rate on the effect of foreign equity flows on stock market volatility was also analysed in the study. The study was undertaken at the Nairobi Securities Exchange for a period of eight years from 2008 to 2015. Causal research design was used. The target population of the study were the monthly foreign equity flows, monthly NSE-20 share indices, monthly USD Bid-Ask FOREX. Time series secondary data was used in the study. The data was subjected to diagnostic tests such as linearity, multi-collinearity, normality, homoscedasticity tests and test for auto-correlation with E-views being the main statistical tool of analysis. The main model used in the study was the vector error correction model subsequ...
Strategic Journal of Business & Change Management, 2017
The main objective of the study was to determine the factors influencing the growth of Safaricom ... more The main objective of the study was to determine the factors influencing the growth of Safaricom M-pesa service with specific reference to Nairobi County. The mobile money sector in Kenya and globally is growing at a tremendous rate and each and every month new aggressive and excessive rate innovative players enter the sector with new standard ways of providing customer satisfaction solutions. It is therefore important for every player in the sector to understand the factors affecting the mobile money transfer services through an understanding of the kind of business we are in and the challenges facing it. Most of the existing research and literature of M-pesa has focused on how and why customers use the product, strategies used by M-pesa to remain the most successful mobile money transfer service globally and its impact on financial inclusion in Kenya. None of the studies has been done in relation to the influence of M-pesa usage convenience and efficiency in the growth of M-pesa s...
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