The Mediating Effect of Housing Search on the relationship between Demographics and Residential Housing Decisions amongst Apartment Households in Nairobi County, Kenya

Abstract The study sought to investigate the mediating effect of housing search on the relationship between apartment household demographics and four residential owner-occupied housing decisions. Using two-stage cluster sampling, a sample of 196 respondents (owner-occupied households) was studied in Nairobi County, Kenya. The study found that housing search has a mediating effect on the relationship between household demographics and choice of neighbourhood, choice of location of house, source of financing and size of apartment house though the mediation was found to be not statistically significant in each of the four relationships. Consequently, formal housing search behaviour was found not to be a popular mode of alleviating information challenges in the housing market since the study recorded very low levels of housing search in support and in contradiction of empirical evidence from housing markets in the West. The study cites implications to policy and practice, limitations associated with the study and makes suggestions for further study. JEL classification numbers: R2, R21, R22, R21

A Cryptography-Based System for Offline Collection and Verification of Tax Revenue by County Governments in Kenya

In the current setting of county governments in Kenya, efficient tax collection is highly dependent on validation of payment documents. This has led to challenges due to the fact that revenue collection has traditionally employed paper-based collection receipts. The research targets to address the challenges of validation of payment receipts in offline revenue collection systems. It supports automation attempts that have been made through the introduction of electronic mobile point of sale terminals. The solution is based on providing an offline model that supports the distributed nature of payment stations. This approach focuses on using cryptography-based techniques to enable offline validation of receipts even in cases of unreliable network connectivity. The objective is to provide a solution that affords ease of both revenue collections for the county governments and payments for the citizenry while stopping revenue leakages, ensuring reliable verification of payment receipts, thus maximising of revenue collection by providing reliable accounting reports. The research provides a reliable revenue collection system that enables offline receipting and verification of payment receipts in integrated mobile point of sale terminals. The solution presented has successfully been implemented and tested in one of the County Governments in Kenya

THE EFFECT OF CORPORATE GOVERNANCE AND CAPITAL STRUCTURE ON PERFORMANCE OF FIRMS LISTED AT THE EAST AFRICAN COMMUNITY SECURITIES EXCHANGE

The purpose of the study was to establish the effect of corporate governance and capital structure on performance of firms listed at the East African community securities exchange. Specifically the study sought to establish the effect of capital structure on the relationship between corporate governance and firm performance of listed companies in Kenya, Tanzania, Uganda, Rwanda and Burundi. Based on the agency theory this study builds a comprehensive framework to answer the research question on whether good corporate governance affects firms performance by integrating capital structure into the governance model. A census survey was carried out on all the 98 listed companies between 2009 and 2013 in Nairobi Securities Exchange, Uganda Securities Exchange, Dar es Salaam Stock Exchange and Rwanda Stock Exchange. Out of the 98 firms that were targeted, 56 were analyzed constituting 57%. The findings revealed that the there was a significant positive relationship between corporate governance and firm performance. The study also confirmed that there is a positive significant intervening effect of capital structure (leverage) on the relationship between corporate governance and firm performance. From a theoretical perspective, this study not only explains how corporate governance affects firm performance, but also uncovers the importance of capital structure in a corporate governance system

THE EFFECT OF CORPORATE GOVERNANCE AND CAPITAL STRUCTURE ON PERFORMANCE OF FIRMS LISTED AT THE EAST AFRICAN COMMUNITY SECURITIES EXCHANGE

The purpose of the study was to establish the effect of corporate governance and capital structure on performance of firms listed at the East African community securities exchange. Specifically the study sought to establish the effect of capital structure on the relationship between corporate governance and firm performance of listed companies in Kenya, Tanzania, Uganda, Rwanda and Burundi. Based on the agency theory this study builds a comprehensive framework to answer the research question on whether good corporate governance affects firms performance by integrating capital structure into the governance model. A census survey was carried out on all the 98 listed companies between 2009 and 2013 in Nairobi Securities Exchange, Uganda Securities Exchange, Dar es Salaam Stock Exchange and Rwanda Stock Exchange. Out of the 98 firms that were targeted, 56 were analyzed constituting 57%. The findings revealed that the there was a significant positive relationship between corporate governance and firm performance. The study also confirmed that there is a positive significant intervening effect of capital structure (leverage) on the relationship between corporate governance and firm performance. From a theoretical perspective, this study not only explains how corporate governance affects firm performance, but also uncovers the importance of capital structure in a corporate governance system

Board Structure, CEO Tenure, Firms’ Charactersitics and Performance of Financial Institutions in Kenya

The broad objective of this research was to determine the effect of board structure on the performance of financial institutions in Kenya and also to find out what the intervening and mediating influence of the tenure of the CEO and firm’s characteristics on this relationship might be. The specific objectives included; to examine the influence of board structure on performance of financial institutions in Kenya; to determine the intervening influence of CEO tenure on the association among board structure and performance of financial sector firms in Kenya; to examine the moderating effect of the firms’ characteristics on the association among board structure and performance of financial institutions in Kenya; and to ascertain the joint effect of board structure, CEO tenure and firms’ characteristics on performance. Secondary data was collected for a ten-year period from 2006 to 2015. Moderated and stepwise regression models and correlation analysis were adopted for the investigation of the association among the variables. The results showed that board structure had independent significant influence on performance of financial institutions; there was no significant intervening effect of CEO tenure on this relationship; there was a significant moderating effect of firms’ characteristics on the relationship; and the joint effect of board structure, CEO tenure and firms’ characteristics was significant. Through this study, the formulation of managerial policies and practices which will promote better governance practices and also appropriate the characteristics of firms and that will improve performance of financial institutions will be enhanced

The Effect of Mergers and Acquisitions Strategies on Financial Performance of Commercial Banks in Kenya

The operating environment for commercial banks in Kenya has become very dynamic and highly competitive. The witnessed cases of bank failure and poor financial performance have made commercial banks develop strategies to improve their financial performance, remain competitive, and meet the regulator's compliance requirements. Mergers and Acquisitions Strategies are on the rise as a strategy aimed to alleviate the ailing sector. In light of this, the purpose of this study was to examine the impact on financial performance of commercial banks in Kenya as a result of mergers and acquisitions Strategies. Operating efficiency and market share impact on the financial performance of commercial banks in Kenya formed the specific objectives. The study objectives were supported by synergies theory, resource-based view theory and agency theory. The study adopted a correlational descriptive research design, including cross-sectional data analysis.  By the year 2017, 30 commercial banks in Kenya had considered mergers and acquisitions strategies were considered as the population of this study. An average of three-year ratios was computed in both pre-merger and post -acquisition periods inorder to assess the impact financial performance. The years of the deal were excluded. The mean difference between the pre-Mergers and Acquisitions Strategies and post-Mergers and Acquisitions Strategies ratios was tested using the T-test.The findings were that Mergers and Acquisitions Strategies have a statically positive significant relationship with the dependent variable. Recommends from the study are that, the policymakers create policies that facilitate and encourage commercial banks to employ mergers and acquisition strategies to achieve better financial performance

Gender Diversity of Boards, Board Composition and Firm Performance

The broad objective of this research was to determine whether gender diversity of boards and board composition, affects performance. Secondary data was collected for a ten-year period from 2006 to 2015 from 98 sampled financial institutions. Multiple regression analysis and generalized estimating equations were used in analysis of the collected data. Parametric and nonparametric methodologies were used. The study was anchored on the agency theory, stakeholder theory, the human capital theory and resource dependence theory. The results show that, gender diversity of boards and board composition had no independent significant influence on performance of financial institutions. Through the study formulation of managerial policy and practice that promote better governance practices and appropriate firm characteristics that improve performance of financial institutions will be enhanced

Governance and Performance of National Government-Constituencies Development Funds in Kenya

The main objective of the study was to establish the relationship between governance and performance of National GovernmentConstituencies Development Funds (NG-CDFs) in Kenya. A census survey was carried out on all the 290 NG-CDFs performance in Kenya. A positivistic research philosophy and a descriptive cross-sectional survey design were used. Data was collected using structured and unstructured questionnaire. Secondary data was easily accessible from the National Treasury, Kenya National Bureau of Statistics, the General Auditor’s reports and NG-CDF website and was collected for the period 2014 to 2018. Simple regression analysis was used to test the hypotheses at 95 percent confidence level. The results of the study were established and compared to various theories anchoring the study and conceptual, contextual and empirical evidence. It was established that there is a statistically significant relationship between governance and NG-CDFs performance in Kenya. The study benefits policy makers such that the NG-CDF board should ensure that all NG-CDFs have homogeneous governance practices that ensure enhanced performance. Managerial practitioners especially in NG-CDF may consider strengthening governance to enhance performance and use Data Envelopment Analysis (DEA) technique to measure performance in NG-CDFs

Capital Structure, Firm Efficiency and Firm Value: The Case of Listed Non-Financial Firms in Kenya

This study examined the influence of a firm’s efficiency on the relationship between capital structure and firm value. The study analyzed thirty non – financial firms listed at the Nairobi Securities Exchange for a period of six years from   2008 to 2013.Capital structure was parameterized as the ratio of retained earnings to total capital, ratio of debt to total capital and ratio of equity to total capital of the firm. Efficiency is measured as the distance from the best practice frontier in the industry. The firm’s efficiency is measured by operational efficiency, cost efficiency and profit efficiency. Firm value is measured by its inputs and outputs. The inputs to the firms production are financing costs (FINC), distribution costs (DISTC), tax liability (TAX), and administrative expenses (ADEXP). The outputs are earnings per share(EPS)and the share price (SP).This study applied panel data analysis using fixed effects model. The results showed that cost efficiency negatively influences the relationship between capital structure and firm value as measured by the SP through increase in distribution costs, administrative costs in financing efficiency improvements in the firm’s core processes. Further Operating efficiency negatively and statistically significantly affects the relationship between firm value and capital structure through the increase in financing costs, distribution costs, administration costs and taxation costs. The results showed that profit efficiency negatively and insignificantly influences the relationship between capital structure and firm value as measured by the SP. Consequently it has a positive but statistically insignificant effect on financing costs, distribution costs, administrative costs and taxation costs. Moreover, capital structure has a positive and statistically significant effect on firm value but firm efficiency insignificantly influences the relationship between capital structure and firm value. This study does not investigate the reverse relationship like Margaritis and Psillaki (2007). Keywords: Capital Structure, Firm Efficiency, Firm Value, Listed Non-Financial Firms, Nairobi Securities Exchang

Demographic Diversity in Top Management Team and Financial Reporting Quality in Commercial State Corporations in Kenya

The purpose of the paper is to examine the effect of demographic diversity in Top Management Team (TMT) on financial reporting quality in commercial state corporations. The study adopted correlational and longitudinal research design and stepwise regression analysis of FRQ variables on a set of demographic diversity variables in TMT. The findings provide considerable evidence to suggest that TMT demographic diversity are associated with financial reporting quality measured by fundamental qualitative characteristics of accounting information, earnings management, timeliness in reporting and disclosure quality. The research implication is that; in general, demographic diversity in TMT-gender, age, education, tenure and functional background may have important implication for financial reporting quality under different measures. The value of this paper is to extend Prior research by addressing the potential effects of TMT demographic diversity on FRQ. The findings reported in this paper provide novel insight to empirical financial reporting quality literature in commercial state corporations