Fusiones y adquisiciones para la sostenibilidad de las empresas en los mercados emergentes en una época de vicisitudes: un análisis de la literatura

Mergers and acquisitions are the most popular modes of external corporate growth. Business sustainability, which seeks present returns without compromising the ability to earn returns in the future, has come under serious challenges in an environment of uncertainty. While academic literature suggests that in periods of fundamental uncertainty, there is a decline of mergers and acquisitions, this paper analyses an emerging body of research that suggests that merger and acquisition deals in a vague era actually deliver more value compared to those made in normal economic conditions, which most empirical studies do not deliver much value for the acquirer. This paper therefore suggests that firms in emerging markets can use mergers and acquisitions during a downturn to deliver superior value to shareholders. It also argues that mergers and acquisitions are a corporate governance issue, because it is at the board level that the overall strategy of the firm is implemented, including the various growth options of the firm. However, further research on merger and acquisitions during a vague era need to be conducted in various regions of emerging markets.Las fusiones y adquisiciones son los modos más populares de crecimiento empresarial externo. La sostenibilidad de las empresas, que busca la rentabilidad presente sin comprometer la capacidad de obtener beneficios en el futuro, se ha visto sometida a serios desafíos en un entorno de incertidumbre. Mientras que la literatura académica sugiere que en periodos de incertidumbre fundamental se produce un declive de las fusiones y adquisiciones, este documento analiza un cuerpo de investigación emergente que sugiere que las operaciones de fusión y adquisición en una era de incertidumbre realmente aportan más valor en comparación con las realizadas en condiciones económicas normales, que en la mayoría de los estudios empíricos no aportan mucho valor para el adquirente. Por lo tanto, este documento sugiere que las empresas de los mercados emergentes pueden utilizar las fusiones y adquisiciones en una época de recesión para ofrecer un valor superior a los accionistas. También sostiene que las fusiones y adquisiciones son una cuestión de gobierno corporativo, porque es en el consejo de administración donde se aplica la estrategia global de la empresa, incluidas las diversas opciones de crecimiento de la misma. Sin embargo, es necesario seguir investigando sobre las fusiones y adquisiciones en una época de indefinición en varias regiones de los mercados emergentes

Effect of Investment Decision on Financial Performance of Savings and Credit Cooperatives: The Case of Kitui Central Sub-County, Kenya

This research work focused on determining the effect of investment decision on financial performance of Savings and Credit Cooperatives in Kitui Central Sub-County. This is was due to the observed decline in performance of SACCOS in Kenya due to a low investment culture. The researchers adopted four objectives as a drive towards the research results as follows; to assess the effect of Replacement decision on Financial Performance of SACCOs in Kitui Central Sub-County, to find out the effects of Expansion Decision on Financial Performance of SACCOs in Kitui Central Sub-County, to investigate the effect of Renewal or modernization Decision on financial performance of SACCOs in Kitui Central Sub-County, and to evaluate the effects of Research and Development Decision on Financial Performance of SACCOs in Kitui Central Sub-County. The study adopted an empirical study design for a time-series data over a ten year period from 2006-2015. The research was undertaken on all twelve (12) SACCOS located in Kitui Town thus utilizing a Census technique in selection of respondents. Simple multivariate analysis was used for data analysis, while Karl Pearson’s correlation was used in determining the correlation within variables. The results of study were produced using data analysis workbook; the statistical package for social sciences (SPSS-version 21). Data presentation was done using tables. The study findings indicated that only research and development decision had a significant effect to SACCO performance while expansion decision, replacement decision, and renewal decision had none. The study recommended that SACCOs should invest more in research and development decision as it had a significant effect to SACCO financial performance, the least variation to the expected results and the highest contribution to financial performance in respect to SACCOs. Keywords: investment decisions, Financial Performance, SACCO

The Influence of Capital Market Deepening on Mortgage Market Growth in Kenya

This study examined the influence of capital markets deepening on mortgage growth in Kenya. The indicators used for capital market deepening were Ratio of Equity Market Capitalization to GDP; the Bond Market Turnover Ratio; Pension Assets; Insurance Assets and the Ratio of Private Credit to GDP while the growth of the mortgage market is measured by the total lending by the banking sector for mortgages. Data was collected for the variables for the 30 year period starting 1984 to 2013. Stepwise regression was used in the analysis because of multicollinearity among some of the variables. As a result, bond market turnover ratio and ratio of private credit to GDP were excluded from the analysis. Insurance assets and pension assets were found to have the greatest influence on mortgage growth while equity market capitalization to GDP has a negative influence. Keywords: Mortgage Market, Capital Markets, Equity Market, Bond Market, Insurance Assets, Pension Assets, Capitalization

Factors Influencing the use of Agency Banking by Bank Customers in Makueni Sub-Country

This study focused on the factors influencing the use of agency banking by the bank customers of Makueni Sub-County, Kenya. This study was guided by four objectives; to determine the influence of agent characteristics on the use of agency banking by the bank customers of Makueni Sub-County, to determine the influence of the banking products offered by bank agents on the use of agency banking by the bank customers of Makueni Sub-County, to establish the influence of agents’ operating hours on the use of agency banking by the bank customers of Makueni Sub-County and to determine the influence of the banks’ location on the use of agency banking by the bank customers of Makueni Sub-County. The study used descriptive survey design and the target population was 276 bank customers in Makueni Sub-County. The respondents were selected using stratified and convenience sampling. Questionnaires were administered on 255 respondents. Data analysis was done using both descriptive and inferential statistics with the help of statistical package for social scientists (SPSS). Qualitative data was analyzed thematically according to the study objectives. The findings of the study revealed that there was a strong positive correlation and a significant relationship between the agency characteristics and use of agency banking, agency banking products and use of agency banking, operating hours and use of agency banking and location of mainstream bank and the use of agency banking. Based on the multiple regression analysis results, it was concluded that banking products had a significant prediction on the use of agency banking in Makueni Sub-County

Factors Influencing the use of Agency Banking by Bank Customers in Makueni Sub-Country

This study focused on the factors influencing the use of agency banking by the bank customers of Makueni Sub-County, Kenya. This study was guided by four objectives; to determine the influence of agent characteristics on the use of agency banking by the bank customers of Makueni Sub-County, to determine the influence of the banking products offered by bank agents on the use of agency banking by the bank customers of Makueni Sub-County, to establish the influence of agents’ operating hours on the use of agency banking by the bank customers of Makueni Sub-County and to determine the influence of the banks’ location on the use of agency banking by the bank customers of Makueni Sub-County. The study used descriptive survey design and the target population was 276 bank customers in Makueni Sub-County. The respondents were selected using stratified and convenience sampling. Questionnaires were administered on 255 respondents. Data analysis was done using both descriptive and inferential statistics with the help of statistical package for social scientists (SPSS). Qualitative data was analyzed thematically according to the study objectives. The findings of the study revealed that there was a strong positive correlation and a significant relationship between the agency characteristics and use of agency banking, agency banking products and use of agency banking, operating hours and use of agency banking and location of mainstream bank and the use of agency banking. Based on the multiple regression analysis results, it was concluded that banking products had a significant prediction on the use of agency banking in Makueni Sub-County

Influence of Working Capital Management Practices on Financial Performance of Small and Medium Enterprises in Machakos Sub-County,Kenya

Working capital can be considered as source of existence for all types of organizations, whether profit or non-profit organizations, therefore, it is a vital component for any profit making organizations for it influences operational level and sales volume. The purpose of this study was to assess the influence of Working Capital Management Practices on Financial Performance of SMEs in Machakos Sub-County, Kenya. This study was based on these objectives: assessment of the influence of cash management practices on financial performance, determination of the influence of receivables management practices on financial performance and the analysis of the extent to which inventory management practices influences financial performance of SMEs. The study adopted a cross-sectional survey research design which allowed the collection of primary quantitative data through structured questionnaires and interview methods. The target population was 159 Owners / Managers of SMEs trading in Machakos Sub-County. Random sampling technique was used to obtain a sample of 22 SMEs trading in Machakos Sub-County. The data was analyzed using both descriptive and inferential statistics. The findings of the study revealed that; working capital management practices were low amongst the SMEs, since majority had not adopted formal Working Capital Management Practices and there Financial Performance was on a low average. The study further revealed that SMEs financial performance was positively related to efficient cash management, efficient receivable management and efficient inventory management at 0.01 significance level

The Effect of Bank Specific Factors on Financial Performance of Commercial Banks in Kenya

The main goal of every banking institution is to operate profitably in order to maintain stability and sustainable growth. External and internal economic environments are viewed as critical drivers for bank performance. The main purpose of this study was to determine the effects of bank specific factors on the financial performance of commercial banks in Kenya for a period of 5 years, starting from the year 2011 to 2015. The dependent variable under investigation was return on assets (ROA). The independent variables were capital adequacy, asset quality, management efficiency, earnings ability and liquidity. The specific objectives of this research were to determine the effects of capital adequacy on the financial performance of commercial banks in Kenya, evaluate the effects of asset quality on the financial performance of commercial banks in Kenya, determine the impact of management efficiency on the financial performance of commercial banks in Kenya, determine the impact of earnings ability on the financial performance of commercial banks in Kenya and evaluate the effects of liquidity on the financial performance of commercial banks in Kenya. The choice of this five-year period was based on the explosive growth of the banking sector in the country and the availability of complete data for that period. The study concentrated on the bank specific factors that affect the bank