School of Business
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Item Effect of Creative Accounting Practices on Long Term Survival of Firms Listed at the Kenyan Nairobi Securities Exchange(KCA University, 2016) Sianyo, Peter N.The current business environment and economic recession have recently pushed top management of many organizations into paying attention to making their financial statements look better using aggressive or creative accounting. Understanding reasons for survival and longevity of firms is central for managing financial accounts and reports. Some firms are more likely to survive longer than others are, thus some factors lead to relative longevity of some firms and cause others to fail. Complexities of creative accounting practices are fully exposed or felt only when the complete structure of a company has collapsed or failed in most of its operations. Accounting practices and scandals can destroy any organization; therefore the need to restore integrity and public confidence to accounting operations. Key motives for creative accounting are to hide a particular bad year to force an exceptionally good year, smooth-out results to give impression of stability; to avoid liquidation. The study examined effect of creative accounting practices on long-term survival of firms listed at NSE. Hence, financial statements‟ data; was collected for the years between 2011 and 2015 for comparative purposes for a target population of 65 firms. Failure or bankruptcy prediction model; Altman‟s ZETA-Score Model (1968) which allows simultaneous consideration of several variables in prediction of corporate failure was applied to predict long term survival. The study carried out statistical analysis on the financial statements of the firms and used the analyzed results to compute ratios for the analysis. Thus, 87% of the firms were found to be having Z-scores less than 1.81, indicating the presence of creative accounting. Therefore, these firms were assumed to be facing financial distress and portray a high probability of bankruptcy in the future. Whereas 13% had Z-scores above 1.81; thus portraying long term survival. Complex measures that focus on the framework of organization and management ought to be taken so as to limit the option causes in favor of creative accounting practices. Thus, if creative accounting is practiced, there is plenty of scope of maneuvering and manipulation of accounting information raising doubts on true and fair view of the financial statements and eventually firms‟ survival.Item Assessing The Factors Affecting the Revenue Collection Performance of Counties in Kenya(KCA University, 2015) Hassan, Abdirahman N.Although the county revenue management is the vehicle to economic growth and development; and efficient service delivery at the counties in Kenya, the revenue collection in various counties of Kenya faces serious challenges. The general objective of the study was to assess the factors affecting revenue collection performance of counties in Kenya in an effort to make recommendations for ensuring excellent performance of revenue collection. Specific objectives of the study were to establish the influence of revenue sources, revenue collection administration, information communications technology and staff capacity on revenue collection performance of Garissa County in Kenya. The study was based on the public choice theory and tax compliance model. The study used descriptive survey design. The study considered a target population of 136 officers of Garissa County government. Since the target population is accessible and manageable the study used census. The study used a structured questionnaire for collecting primary data from the selected respondents. Descriptive statistics, correlation and regression analysis were sued to analyze data. Quantitative data was analyzed with assistance of Statistical Package for Social Scientists (SPSS). The study established that revenue source significantly influenced revenue collection performance. Further, revenue collection administration, ICT and staff capacity has a positive and significant effect on revenue collection performance. The study makes the following recommendations. First, the county should ensure that it diversifies its revenue sources to widen its tax and revenue bracket. Secondly, the county government should institute innovative and accountable methods of revenue collection and management. Moreover, the county should adopt ICT in various activities and process of revenue collection to ensure that processes with inefficiencies are removed. Lastly, the study recommends that staff capacity should always be improved to ensure that they can keep up with the needs of revenue collection.