Browsing by Author "Njuguna, Peter"

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Effect Of Institutional Capital On Institution’s Financial Stability Of Deposit-taking Saccos In Kenya
(International Journal of Social Sciences and Information Technology, 2023) Kifworo, Michael; Kiveu, Mary; Njuguna, Peter
The deposit-taking Savings and Credit Cooperatives (SACCOs) sector is a crucial component of the financial industry contributing significantly to Kenya's economic growth. However, there is still a challenge on adequate regulatory to enhance compliance given that majority of the SACCO members are small and thus may be technically and financially constrained to meet the tight liquidity requirements set by SASRA. The general objective of this research inquiry was to explore the effects of capital composition (structure) decisions on the institution's financial stability. The study used a populace of one hundred and seventy-four Deposit Taking Savings & Credit Co-operatives Societies (DTSs) that filed their report for the period ranging from 2014 to 2018 was considered. Data analysis was done through inferential and descriptive statistics. The correlation and regression features of the Statistical Package for Social Sciences (SPSS) Version 20 were used in the analysis of data. The data showed a degree of variation between the capital structure decision of the deposit-taken SACCOs in Kenya. There was a positive correlation between the institutional capital and institutional capital to total assets ratio, core capital, total deposits ratio, and total assets to total loans ratio. This study will provide academics and other researcher with relevant information regarding the influence of financing approaches on the growth of deposit- taking SACCOS in Kenya and will help the management of the deposits and credit cooperative societies in implementing viable financial guidelines.
Effect of Leverage on Social- Environmental Responsibilities Disclosures in Financial Reports of Kenyan Listed Firms
(International Journal of Research and Innovation in Social Science (IJRISS), 2023) Kemei, Ceasar; Njuguna, Peter; Rotich, Abraham
The purpose of this study was to determine the effect leverage on social-environmental responsibilities disclosures in Annual financial reports of Kenyan listed firms. Descriptive research design was used and secondary data was collected from 2009 to 2018 annual reports of 45 companies listed prior to 2009. Content analysis was used to determine the quality of disclosure guided by Global Reporting Initiative index. Using random regression analysis the study showed that leverage were positively significant disclosure of social environmental responsibilities information on financial reports of Kenyan listed firms. This study deviates from previous studies done in Kenya by exploring one factor of leverage and extents the quality score from just 0 and 1 to 0 to 3 to measure quality. This study informs the need for companies in Kenya to voluntary disclose social environmental issues in their financial reports to attract capital providers and to contribute the understanding of determinant of leverage on SER in theory and practice from its findings.
Relationship Between Selected Macroeconomic Variables and the Financial Performance of Investment Banks in Kenya
(International Journal of Economics and Finance, 2021) Njuguna, Peter; Mungiria, James B
Currently, investment banks in Kenya are facing a lot of challenges due to persistence losses However, the available studies are inadequate to aid investment banks in overcoming these challenges in Kenya due to mixed findings, resulting in rising uncertainty on equity investments performance, leading to massive losses among investment banks. This study, therefore, sought to model the relationship between inflation, GDP, interest rates, exchange rates, and financial performance of investment banks Arbitrage pricing theory Modern portfolio theory as well as classical economic theory (flow oriented model) was used. A causal research design was adopted. The study found that inflation has negative significant influence on financial performance of equity investments among investment banks in Kenya. Also, GDP has positive and significant influence on financial performance of equity investments among investment banks in Kenya. Interest rate was also found to have negative and significant influence on financial performance of equity investments among investment banks in Kenya. In addition, exchange rate has negative significant influence on financial performance of equity investments among investment banks in Kenya. The study therefore recommends any investor including financial investors to methodically analyze inflation trends and understand how it affects the company s financial performance. Investors must also be in a position to predict the future concerning inflation changes.
Small And Medium-sized Entities In The Agricultural Sector: Fair Value Reporting Challenges
(Agrekon, 2013) Njuguna, Peter; Wingard, W C
Biological assets should be valued at fair value less point of sale costs only if an active market exists. The quoted price in an active market is the appropriate basis for determining the fair value of the asset. The objective of this research was to identify the challenges in respect of fair value reporting on the part of small- and medium-sized entities that publish general purpose financial statements, but that do not have public accountability in implementing the requirements of the International Financial Reporting Standard for Small and Medium-sized Entities. Through the research it was established that in Kenya the commodity markets operate in a simplified auction system with no clear price discovery mechanism. The lack of an active and transparent market is a serious challenge in terms of the application of fair value to biological assets. Consequently most of the farmers prefer to model the market information available. In the light of the diverse nature of agricultural produce, this article recommends virtual trading and development of commodity futures in order to reduce the market access cost, to improve accessibility to market information and to transform the role of middle traders to that of market linkages.