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

The Intervening Influence of Enterprise Risk Management on the Relationship between Board Practices and Performance of Government Owned Entities in Kenya

The enterprise risk management is an integrated approach of risk management involving the executive management and board of directors including employees in identification, assessment, reporting and monitoring of strategic, operational, and financial risks across the entire organization.  This paper seeks to establish intervening influence of enterprise risk management in the relationship between board practices and performance. The data was sought from all 234 government-owned entities operating in Kenya. 153 GOEs returned properly filled up questionnaires. Secondary data on performance were derived from performance contracting reports. The data was analyzed using AMOS graphics to obtain CB-SEM paths with the aid of IBM SPSS version 26. The conceptual model was built on three latent variables, namely board practices, enterprise risk management and performance. The findings indicated that direct impact of board practices was positive and significant at 60%. The study further established that enterprise risk management significantly positively impacted performance by 26.8%. However, presence by enterprise risk management framework as an intervening variable reduces impact of board practices to performance from 0.600 to 0.268, although it remains positive and significant. Hence despite presence of enterprise risk management, indirect influence of board practices on performance remains significant indicating partial intervention. The enterprise risk management was therefore found to have significant effect as an intervenor on the relationship between board practices and performance. It is therefore important for government owned entities to prioritize implementation of an integrated system of oversight that includes board practices and enterprise risk management framework in order to enhance their overall performance. Keywords: Strategic, Enterprise Risk Management, Conceptual model, Board practices, Performance, Framework DOI: 10.7176/EJBM/15-19-09 Publication date: December 31st 202

The Intervening Influence of Internal Controls on the Relationship Between Board Practices and Performance of Government Owned Entities in Kenya

There is a growing public debate on the role of boards in government-owned entities due to poor performance, corporate scandals, and increased corruption. Good board practices and internal controls, including enterprise risk management, are crucial for enhancing performance. Research findings on their impact have been contradictory. However, improving transparency, accountability, and adherence to governance frameworks can positively influence performance. Addressing governance issues is crucial to mitigate resource mismanagement and corruption, leading to better overall performance. The objective was to determine relationships among board practices, internal controls, and government-owned entities’ performance. Data was collected from 153 properly completed questionnaires out of the 157 returned, representing 65.38% of the entire population of 234 government-owned entities. The findings established that internal controls positively and significantly intervened in the relationship between board practices and performance. Implementing good board practices and internal controls promotes accountability and transparency, leading to enhanced organizational performance. Government-owned entities should prioritize implementing effective board practices and internal controls to enhance their overall performance