84 research outputs found
The Effect of Size on Financial Performance of Commercial Banks in Kenya
The question of whether size influences financial performance of commercial banks has not been conclusively settled empirically. The objective of the study was therefore to establish the effect size has on the profitability of commercial banks in Kenya. The study used an unbalanced panel of all commercial banks in Kenya for the ten year period 2007 to 2016 (the number ranged from 39 to 43). Regression analysis was used to relate size (proxied by log of total assets) against financial performance (Return on assets and return on equity). Size was found to have a positive effect on financial performance of commercial banks in Kenya. In addition, the effect was stronger the larger the commercial bank. The study recommends that policy initiatives geared towards increasing the size of the commercial banks be considered and shareholders/managers could also adopt growth strategies (internally generated, fund raising or mergers and acquisitions)
Dividend theory and empirical evidence : a theoretical perspective
Objective: The objective of this study is to theoretically
review the existing theoretical and empirical literature
on dividend policy to understand the status and
applicability of the theory in different economies and to
discover any potential knowledge gaps for further
research. --
Study Design and Methodology: This is a descriptive
analysis of existing theoretical literature and its
application in different economies. The study used a
sample of empirical studies to gather empirical evidence. --
Findings: Dividend policy has a significant role in the
firm decision-making process, a uniform dividend policy
for all firms may not be feasible because of the
differences in firms’ ownership, investor’s preference
and firm characteristics, firms maintain a consistent
dividend policy to avoid giving wrong signals to
investors. The study also confirms inconsistency in the
application of existing dividend theory with empirical
evidence in different markets. We find that the
ownership structure of a firm has greater influence in the
firm decision-making process and recommend future
studies should explore the extent to which ownership
structure influences dividend policy and firm value. --
Significance of the study: This study provides a
framework for evaluating dividend policy practices
between developed and developing countries, evaluate
the relevance and applicability of dividend theory within
the context of developing economies and identify the best
dividend policy practices. The study will form part of the
body of knowledge in the finance literature that will
enable scholars to appreciate the critical issues involved
in dividend policy decisions and provide a base for
identifying knowledge gaps for further research.peer-reviewe
Effectiveness of mobile phone text message reminder on birth preparedness in a rural community in Kenya
Background: Birth preparedness is a strategy that has been found effective in preventing obstetric delays. Use of mobile technology can enable access and efficiency of health messages delivered during antenatal care. The mobile technology can be more effective in conveying health messages owing to its accessibility and enables follow up. Materials and Methods: This was a randomized control trial carried out among pregnant women attending public health antenatal clinics in Migori County. Four health facilities were randomized. Two facilities each were randomly picked for the study and control groups respectively. A total of 379 participants were recruited into the study. The study group participants received a verbal message on birth preparedness and a mobile phone text message reminder one month to their expected date of delivery. Follow up was done to both groups through their mobile phone contacts. Data was collected using an interviewer‑administered questionnaire and analyzed using Stata version 11. Proportion tests were done to compare the groups. Results: The success rate of the study was 90.5% (n = 343). Most of the participants (73%) were aged between 20 and 34 years. Majority of them were married (79.2%) and most of them had primary level of education. Protestant was the predominant religion (55.2%). Housewives and businesswomen constituted 34.2% and 27%, respectively. The respondents in the study group who were birth prepared were 74.3% (n = 136) while those in the control group were 48.1% (n = 77).Conclusion: The use of mobile phone text message reminder in addition to verbal messages is more effective. Key words: Antenatal; birth preparedness; delivery; message reminder; mobile phon
Effects of Underwriting and Claims Management on Performance of Property and Casualty Insurance Companies in East Africa
The insurance sector plays an important role in service economy of any country by underwriting of risks inherent in most sectors thus providing a sense of peace to most economic entities. Performance of general insurance companies is expected to be related to various factors, including optimal underwriting and prompt and efficient claims management functions. This study investigated the effect of underwriting and claims management practices on the performance of general insurance firms in East Africa. The study employed multiple linear regression analysis using primary and secondary data collected from 82 general insurers in Kenya, Uganda and Tanzania. The findings show that there is a significant positive relationship between underwriting and claims management practices employed by the firms and non-financial performance, but the relationship with financial performance was insignificant. The implication is that a profit oriented insurance firm should embrace a claims function that is closely related with the underwriting and pricing of the firm’s portfolio for meaningful results. It is recommended that general insurance companies focus on other important factors besides underwriting and claims management order to improve overall financial performance
THE DETERMINANTS OF FINANCIAL PERFORMANCE IN GENERAL INSURANCE COMPANIES IN KENYA
The contribution of the general insurance industry in Kenya to the gross domestic product is at 2.08%. This is low and hence the need to establish factors that can influence improved performance of some of the key players – the general insurance companies. The study was therefore to establish the factors that affect the profitability of general insurers in Kenya. The study employed multiple linear regression, with return on assets as the dependent variable, and considered all the general insurance companies in Kenya for the period 2009-2012. Profitabilitywas positively related to leverage, equity capital, management competence index and negatively related to sizeand ownership structure. The study did not find a relationship between performance and retention ratio, liquidity, underwriting risk and age. The study recommends that for general insurers in Kenya to perform better they should increase leverage, equity capital and quality of staff
THE EFFECT OF CORPORATE GOVERNANCE PRACTICES ON EARNINGS MANAGEMENT OF COMPANIES LISTED AT THE NAIROBI SECURITIES EXCHANGE
The objective of the study was to establish the effect of corporate governance practices on earnings management of companies listed at the Nairobi Security Exchange (NSE). The target population consisted of the 49 companies that had been continuously and actively trading at the NSE between January 2010 and December 2012. Secondary data was used covering the period 2010 to 2012 and analyzed using linear regression to test the effect of the independent variables on the dependent variable. The study found that earnings management is negatively related to ownership concentration, board size and board independence but positively related to board activity and CEO duality. The study recommended the need for effective corporate governance practices in listed companies in Kenya to contribute to reduced earnings management and avert possible collapse of listed companies in Kenya
Effect of Technology Based Financial Innovations on Non-Interest Income of Commercial Banks in Kenya
Technology based financial innovation has had a great impact on the financial industry as a whole over the past few decades. It has presented the banking sector with an opportunity to increase the revenue base. This study intended to identify the impact of technology based financial innovation on non-interest income in Kenyan commercial banks. The study investigated how the adoption of ATMs and Cards, Internet and Mobile Banking and use of Funds Transfer Systems such as RTGS and EFT has impacted the non-interest income of commercial banks in Kenya. Descriptive research design was utilised. The study found that technology based financial innovation has significant effect on the non-interest income earned by commercial banks in Kenya. It recommends all stakeholders in commercial banks to take any investments made towards technology based financial innovation products as a strategy to improve non-interest incom
The knowledge and compliance with the universal precautions and the prevalence of percutaneous injuries among registered nurses in selected county hospitals in Kenya.
Objective: To establish the level of knowledge and compliance with the Universal Precautions and the prevalence of Percutanous injuries among Registered nurses in Selected County Referral Hospitals in Kenya.Design: A cross-sectional hospital-based quantitative study.Setting: Baringo County Referral Hospital and Nandi County Referral Hospital both of which are situated in the Rift Valley Region of Kenya.Subjects: The respondents were all the Registered Nurses in the selected County Referral Hospitals.Results: The study established that the majority(87.6%, n=145) of the Registered Nurses are considered knowledgeable on the Universal Precaution. The difference between the means in knowledge scores of the two groups is significant at the 0.01 level, t(143)=3.820, p<0.01. Those who were Compliant with the Universal Precautions was a minority(42.1 %, n=145). Compliance with the Universal Precautions and was predicted by knowledge on the Universal Precautions(R2:0.25, p<0.01). A majority(57.2%, n=145) of the respondents had experienced at least one percutaneous injuries with those afflicted recording an average of 2.2 (SD=1.3) injuries per person in the last five years. Using Logistic Regression, it was established that Odds ratio of getting afflicted with Percutaneous Injuries comparing by gender is 0.47, 95%CI= (0.22-0.99). Simple linear regression established that the number of percutaneous injuries are predicted by age(R2:0.48, p<0.01) and experience in years(R2:0.59, p<0.01).Conclusion: The study concluded that the level of knowledge of the Universal Precautions among the Registered Nurses is very good but is not corresponding to the relatively average compliance of the same Universal Precautions. Knowledge of the Universal Precautions was identified as a predictor to compliance with the Universal Precautions. Percutaneous Injuries occurences are common to the Registered Nurses and most of those affected are relactant to reportto the authorities for further management. Keywords: Percutaneous Injuries, Universal Precautions,Standard Precautions, Compliance
The Relationship Between Macroeconomic Factors and Mortgage Market Growth in Kenya
The mortgage market is the market for financing real estate assets. Mortgage financing is vital in financing the property market. This study seeks to determine the relationship between selected macro factors and mortgage market growth in Kenya. The study is based on the arbitrage pricing theory, capital assets pricing theory, title theory and lien theory of mortgages. The study utilizes descriptive research design and quarterly secondary data for a period of 10 years from 2007 to 2016. Analysis of data is carried out through descriptive and inferential statistical techniques. Inferential statistics such as linear correlations and multiple linear regressions are used to draw conclusions and make predictions on the relationship between the independent variables and the dependent variable. The research establishes that there is a positive and significant relationship between interest rates, inflation and the mortgage market growth. The research also finds that there is insignificant relationship between exchange rates, gross domestic product and the mortgage market growth. The research concludes that the mortgage market growth in Kenya is influenced by interest rates and inflation. The research recommends that the central bank of Kenya should ensure that interest rates are stable and inflation levels are low to ensure that they do not affect the mortgage market growth
THE EFFECT OF CORPORATE GOVERNANCE PRACTICES ON EARNINGS MANAGEMENT OF COMPANIES LISTED AT THE NAIROBI SECURITIES EXCHANGE
The objective of the study was to establish the effect of corporate governance practices on earnings management of companies listed at the Nairobi Security Exchange (NSE). The target population consisted of the 49 companies that had been continuously and actively trading at the NSE between January 2010 and December 2012. Secondary data was used covering the period 2010 to 2012 and analyzed using linear regression to test the effect of the independent variables on the dependent variable. The study found that earnings management is negatively related to ownership concentration, board size and board independence but positively related to board activity and CEO duality. The study recommended the need for effective corporate governance practices in listed companies in Kenya to contribute to reduced earnings management and avert possible collapse of listed companies in Kenya
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