Effect of Default on Profitability in Kenyan Listed Companies

The study investigated the whether the default measures of liquidity and solvency are associated and whether default measures are related to firm profitability. A total of 41 firms were selected to be in the study sample out of 46 non-financial listed firms in the Nairobi Securities Exchange during years 2013 to 2017 and panel data regression analysis was employed. The findings revealed that liquidity and solvency are significantly and negatively associated while the default measures lacked a significant relationship with profitability in Kenyan listed companies. The findings implied that there is no need for firms to focus too much on the relationship between default and profitability including invest heavily in liquidity in order to meet short term obligations as nowadays it is possible for firms to either convert non-cash assets quickly or borrow on short notice from financial institutions in case of an urgent need to meet liquidity shortages. These findings are consistent with the shitability theory

Is There Profit from Bonus Share Announcements in Nairobi Securities Exchange?

The question of whether the announcement of issuance of bonus shares by quoted companies is news to stock market participants or it is anticipated by the market has been the subject of research. If the announcement is anticipated, then stock prices should not change drastically during the days surrounding the announcement date. This research employed the event study methodology by using the bonus announcements of eighteen NSE listed companies that occurred during the year 2005 to 2010. The t-test statistic was employed to test the significance of the average abnormal returns and cumulative average abnormal returns from zero. It is possible to profit from bonus share announcement when the abnormal or abnormal returns are significant from zero. The results of t-tests on the average abnormal return (AAR) and the cumulative average abnormal return (CAAR) indicated that abnormal returns were significantly different from zero which implied that implied that there is an anomaly in the semi-strong form efficiency of the NSE with regards to bonus announcements as it is possible to profit from such announcements which is regarded as news by NSE investors

Is there profit from bonus share announcements in Nairobi Securities Exchange?

Published on Research Journal of Finance and AccountingThe question of whether the announcement of issuance of bonus shares by quoted companies is news to stock market participants or it is anticipated by the market has been the subject of research. If the announcement is anticipated, then stock prices should not change drastically during the days surrounding the announcement date.This research employed the event study methodology by using the bonus announcements of eighteen NSE listed companies that occurred during the year 2005 to 2010. The t-test statistic was employed to test the significance of the average abnormal returns and cumulative average abnormal returns from zero. It is possible to profit from bonus share announcement when the abnormal or abnormal returns are significant from zero. The results of ttestson the average abnormal return (AAR) and the cumulative average abnormal return (CAAR) indicated that abnormal returns were significantly different from zero which implied that implied that there is an anomaly in the semi-strong form efficiency of the NSE with regards to bonus announcements as it is possible to profit from such announcements which is regarded as news by NSE investors.The question of whether the announcement of issuance of bonus shares by quoted companies is news to stock market participants or it is anticipated by the market has been the subject of research. If the announcement is anticipated, then stock prices should not change drastically during the days surrounding the announcement date.This research employed the event study methodology by using the bonus announcements of eighteen NSE listed companies that occurred during the year 2005 to 2010. The t-test statistic was employed to test the significance of the average abnormal returns and cumulative average abnormal returns from zero. It is possible to profit from bonus share announcement when the abnormal or abnormal returns are significant from zero. The results of ttestson the average abnormal return (AAR) and the cumulative average abnormal return (CAAR) indicated that abnormal returns were significantly different from zero which implied that implied that there is an anomaly in the semi-strong form efficiency of the NSE with regards to bonus announcements as it is possible to profit from such announcements which is regarded as news by NSE investors

Are Good Companies Good Stocks? Evidence from Nairobi Stock Exchange

The search for abnormal stock returns seems elusive for many investors in efficient markets unless there are anomalies in such markets. This has led to the development of numerous stock selection methods including the application of technical and fundamental analysis in an attempt to beat the market. There is uncertainty as to whether good companies that are defined by strong earnings and sales growth are also good stocks whose prices appreciate and outperform other stocks in the market. This research employs a study sample consisting of 32 companies listed in the NSE to establish the relationship between good companies and good stocks. The Pearson’s correlation coefficient and descriptive statistics techniques were employed. The results indicate that there is a strong positive correlation between the good companies and good stocks in the NSE.

Influence of Board Characteristics on Financial Distress of Deposit Taking SACCOs in Nairobi County, Kenya

The importance of Savings and Credit Cooperatives (SACCOs) cannot be underestimated. Despite their importance, they are faced with numerous challenges among them financial distress which threatens their very existence. The current research sought to establish the role of board characteristics in the financial distress suffered by Deposit Taking SACCOs in Nairobi County. The study is anchored inter alia on Agency Theory. Descriptive research design was adopted while Nairobi County was purposively chosen and a census was carried out on deposit taking SACCOs in the county. Secondary data was collected from SASRA using a data collection sheet and a panel data analysis performed using STATA software. The findings were presented using tables. The study concluded that there was a relationship between board characteristics and financial distress of Deposit Taking SACCOs where board composition, board education and board tenure have statistically significant and negative influence on financial distress. In conclusion SACCOs need to have lean boards, Board composition should also be improved by including more women on boards, there should be more inclusion of members with high and relevant education credentials, and SACCOs should have term limits for their members while an analysis too based on the Altman’s Z score models should be adopted for SACCOs. Another research may be carried out to establish other factors causing financial distress and how to turn around the SACCOs already in distress

Testing Of Consistent Trends in Stock Performance In The Nairobi Securities Exchange

Consistent stock performance contradicts random adjustment of stock prices in efficient markets and is thus anomalous despite the potential of generating significant profits for investors. This research set out to test the existence of consistent stock performance in the NSE during the years 2001 to 2010 and to examine whether consistent stock performance is  associated with efficiency of NSE. Balanced monthly closing averagestock price data was employed for 32 sample stocks drawn using purposive sampling technique from a population of 56 stocks listed in the NSE during the study period. In order to identify consistent stock performance, frequency tests were employed. In order to test association between consistent stock performance and efficiency of NSE 3 tests were employed including: t-test to test the significance of abnormal returns of consistentstock performance. Runs serial correlation test was employed to test serial correlation of stock returns. Spearman rank correlation was also employed to test volatility of stock prices with time. The results indicated weak presence of consistent stock performance in the NSE and that abnormal returns of consistently performing stocks were insignificant.There was also zero serial correlation of stock returns and stock prices of consistently performing stocks exhibited low volatility with time. The overall results indicate that NSE may be weak form efficient. This research contributes to new knowledge by combining the alternative definitions of consistent stock performance to minimize on the inherent weaknesses of each definition(cross sectional and longitudinal) which havein the past been studied independently.Key Words: Consistent stock performance, serial correlation, volatility, abnormal returns, stock market efficiency

Antimicrobial resistance among migrants in Europe: a systematic review and meta-analysis

BACKGROUND: Rates of antimicrobial resistance (AMR) are rising globally and there is concern that increased migration is contributing to the burden of antibiotic resistance in Europe. However, the effect of migration on the burden of AMR in Europe has not yet been comprehensively examined. Therefore, we did a systematic review and meta-analysis to identify and synthesise data for AMR carriage or infection in migrants to Europe to examine differences in patterns of AMR across migrant groups and in different settings. METHODS: For this systematic review and meta-analysis, we searched MEDLINE, Embase, PubMed, and Scopus with no language restrictions from Jan 1, 2000, to Jan 18, 2017, for primary data from observational studies reporting antibacterial resistance in common bacterial pathogens among migrants to 21 European Union-15 and European Economic Area countries. To be eligible for inclusion, studies had to report data on carriage or infection with laboratory-confirmed antibiotic-resistant organisms in migrant populations. We extracted data from eligible studies and assessed quality using piloted, standardised forms. We did not examine drug resistance in tuberculosis and excluded articles solely reporting on this parameter. We also excluded articles in which migrant status was determined by ethnicity, country of birth of participants' parents, or was not defined, and articles in which data were not disaggregated by migrant status. Outcomes were carriage of or infection with antibiotic-resistant organisms. We used random-effects models to calculate the pooled prevalence of each outcome. The study protocol is registered with PROSPERO, number CRD42016043681. FINDINGS: We identified 2274 articles, of which 23 observational studies reporting on antibiotic resistance in 2319 migrants were included. The pooled prevalence of any AMR carriage or AMR infection in migrants was 25·4% (95% CI 19·1-31·8; I2 =98%), including meticillin-resistant Staphylococcus aureus (7·8%, 4·8-10·7; I2 =92%) and antibiotic-resistant Gram-negative bacteria (27·2%, 17·6-36·8; I2 =94%). The pooled prevalence of any AMR carriage or infection was higher in refugees and asylum seekers (33·0%, 18·3-47·6; I2 =98%) than in other migrant groups (6·6%, 1·8-11·3; I2 =92%). The pooled prevalence of antibiotic-resistant organisms was slightly higher in high-migrant community settings (33·1%, 11·1-55·1; I2 =96%) than in migrants in hospitals (24·3%, 16·1-32·6; I2 =98%). We did not find evidence of high rates of transmission of AMR from migrant to host populations. INTERPRETATION: Migrants are exposed to conditions favouring the emergence of drug resistance during transit and in host countries in Europe. Increased antibiotic resistance among refugees and asylum seekers and in high-migrant community settings (such as refugee camps and detention facilities) highlights the need for improved living conditions, access to health care, and initiatives to facilitate detection of and appropriate high-quality treatment for antibiotic-resistant infections during transit and in host countries. Protocols for the prevention and control of infection and for antibiotic surveillance need to be integrated in all aspects of health care, which should be accessible for all migrant groups, and should target determinants of AMR before, during, and after migration. FUNDING: UK National Institute for Health Research Imperial Biomedical Research Centre, Imperial College Healthcare Charity, the Wellcome Trust, and UK National Institute for Health Research Health Protection Research Unit in Healthcare-associated Infections and Antimictobial Resistance at Imperial College London

RNA Interference in Schistosoma mansoni Schistosomula: Selectivity, Sensitivity and Operation for Larger-Scale Screening

RNA interference (RNAi) is a technique to selectively suppress mRNA of individual genes and, consequently, their cognate proteins. RNAi using double-stranded (ds) RNA has been used to interrogate the function of mainly single genes in the flatworm, Schistosoma mansoni, one of a number of schistosome species causing schistosomiasis. In consideration of large-scale screens to identify candidate drug targets, we examined the selectivity and sensitivity (the degree of suppression) of RNAi for 11 genes produced in different tissues of the parasite: the gut, tegument (surface) and otherwise. We used the schistosomulum stage prepared from infective cercariae larvae which are accessible in large numbers and adaptable to automated screening platforms. We found that RNAi suppresses transcripts selectively, however, the sensitivity of suppression varies (40%–>75%). No obvious changes in the parasite occurred post-RNAi, including after targeting the mRNA of genes that had been computationally predicted to be essential for survival. Additionally, we defined operational parameters to facilitate large-scale RNAi, including choice of culture medium, transfection strategy to deliver dsRNA, dose- and time-dependency, and dosing limits. Finally, using fluorescent probes, we show that the developing gut allows rapid entrance of dsRNA into the parasite to initiate RNAi

Prediction of Consistent Stock Performance and Low Stock Price Movement in Nairobi Securities Exchange Using underlying Firm Characteristics

Stock markets that are efficient generate prices in a random manner which causes highstock price movement or volatility. Low stock price movement implies consistent stockperformance and the existence of anomalies in stock markets that are efficient. There arevarious types of consistent stock performance but the specific type that relates to low stockprice movement in the NSE and the relevant underlying variables are unknown and hencethe justification of the current research. The purposive sampling method was employed toselect a sample of 31 stocks from a population of 56 stocks that were listed in the NSEduring the study period from January 2001 to December 2010. The sample stocks wereinitially sorted into three portfolios consisting of high, medium and low price volatilitystocks based on the standard deviation historical volatility metric. The portfolio with lowstock price volatility was then compared with the different types of consistent stockperformance in order to establish the specific type that was significantly associated withhistorical stock price volatility. The low stock price volatility portfolio was regressedagainst underlying firm characteristics to establish their prediction power. The resultsindicated that consistent positive stock returns type was significantly associated with lowstock price volatility with Pearson’s correlation coefficient being 63.9% and p-value being0.047 at 95% level of significance. Book value, dividends per share and earnings per sharepredictor variables had significant prediction power over low stock price volatility andconsistent stock performance. The implication of these results is that investors in the NSEcan predict consistent stock positive stock returns and low stock price volatility by studyingunderlying firm characteristics of book value, dividends per share and earnings per share

The Moderating Influence of Competitive Environment on the Relationship between Marketing Mix Strategies and Performance of Tour Firms in Kenya

This study examined the competitive environment’s moderating effect on the relationship between marketing mix strategies and tour firms’ performance in Kenya. The researcher adopted a descriptive research design and used a survey approach to collect pertinent data for analysis. The study population comprised all tour firms, both locally and foreign-registered, operating under the Kenya Association of Tour Operators (KATO) as of September 2019. Two hundred thirty-four tour firms were surveyed out of a population of 260 registered firms. Descriptive statistical and inferential analyses were conducted and regression analysis results were used to test the hypothesis. The study established a positive and significant moderating effect of Competitive Environment (CE) on the relationship between Marketing Mix Strategies (MMS) and the Organizational Performance (OP) of tour firms in Kenya. The study’s findings are significant to policymakers and stakeholders operating in the tourism industry.They accentuate the significance to tour firms in implementing the right kind of marketing mix strategies to maximize their organizational performance. The study recommends future studies in the same area be expanded to include other travel trade areas such as hoteliers and travel agencies. Such a study would increase the empirical knowledge in the subject matter while also extending the generalizability of the results