Theses and Dissertations
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Item Effect Of Financial factors on Financial Distress Of Tier Two Commercial Banks In Kenya(KCA University, 2019) Munguti, Hellen M.Kenyan banking sector is a fast growing industry playing a critical role in the economy of the country by significantly contributing to the GDP. Despite this growth, the banking sector still faces a number of obstacles that threaten its performance. There are a number of challenges that exist in this sector and among the most notorious challenges is financial distress which is a phenomenon that has steered the closure of several tier two commercial banks thus crippling the financial sector, frustrating investors and creating a major setback in the economy. This study sought to establish the effect of financial factors on the financial distress of tier two commercial banks in Kenya. The variables under this research were leverage, liquidity, organizational size and foreign ownership. The general objective of the study was to establish the effect of financial factors on financial distress of tier two Commercial Banks in Kenya while the specific objectives were to determine the effect of leverage and liquidity, establish the effect of firm size and evaluate the effect of foreign ownership on financial distress of tier two commercial banks in Kenya. The study considered the Trade Off theory, Liquidity Preference theory and Wreckers theory of financial distress. Causal research design was used in the study with a target population of 13 tier two commercial banks in Kenya and covered a ten-year period between 2009 and 2018. 11 out of the possible 13 banks were used in the study since two of the banks were under receivership at the time the study was carried out. The study used secondary data which is quantitative in nature collected from the banks’ financial statements. Beneficiaries of the findings of this study included investors, policy makers, management and other researchers. Various diagnostic tests were conducted; these included the Hausman test, Normality test, Multicollinearity test, Linearity and Homoscedasticity test. Panel Regression model was used to predict the effect of financial distress of tier two commercial banks in Kenya using STATA statistical software version 14. Analyzed data was presented in tables and graphs. The study revealed a significant relationship between leverage as a financial factor on financial distress of tier two commercial banks in Kenya. The study recommends that commercial banks should strike a balance between debt and equity in their capital structure and that they should not place much emphasis on debt as too much of it would result to financial distressItem Effect Of Financial Management Decisions On Performance Of Manufacturing Firms Listed On Nairobi Securities Exchange(Kca University, 2016) Muinde, Isaac M.The effect of finance management on manufacturing firm performance in Kenya needs to be studied. Using panel research design, the study seeks to investigate the effect of finance management decision on listed manufacturing firm performance in 2005 to 2014. Specifically the study seeks to establish the effect of leverage and manufacturing firm performance among listed companies in NSE. To determine the effect of investment decision on manufacturing firm performance, to find out the effects of dividend policy on manufacturing firms' performance and to establish the effect of working capital on manufacturing firm performance. The target population of this study was all the nine manufacturing listed companies in Kenya. The study was based on secondary data which was collected from the published annual reports for listed companies manufacturing firms in (2005-2013). Both Microsoft excel and E views 8 were used to analyse the data. A graphical method was used to explore the data. Panel regression analysis was used to examine the relationship between independent and dependent variables. Results of the study revealed that there was negative relationship between investment and EBIT while leverage, dividend, working capital and total assets had a positive relationship with EBIT. There was a positive relationship between annual sales and investment, leverage, dividend, working capital and total assets. There was a positive relationship between leverage, dividend, working capital, total assets and gross profit while investment had an inverse relationship. The firms should examine their credit rating, predict their chances of bankruptcy. Secondly, they should evaluate all the investment decisions to ensure that they attain optimal benefits from all capital expenditure. Manufacturing company annual dividend policy ought to be examined to ensure that it meets the unique needs of all investors. The firms should evaluate the working capital decision so that they can adapt the optimal working capital cycle.Item Determinants Of Dividend Payout For Firms Listed At Nairobi Securities Exchange(Kca University, 2022) Njiraini, Casto N.Over the years, dozens of theories have attempted to explain the dividends phenomenon with no consensus reached. Many of the theories view agents as rational and dividends either serve as an efficient way to resolve agency problems or as a signaling device to mitigate information asymmetry problems. This study sought to establish the determinants of dividend payout ratio for companies listed at the Nairobi Securities Exchange. The specific objectives of the study were to determine the influence of profitability, liquidity, leverage and firm size on dividend payout ratio for companies listed at the Nairobi Securities Exchange. The target population of the study were all the 64 firms listed at the NSE as at 31st December 2021. However, one of the firms was listed after 2017 while 5 were suspended remaining with 58 listed firms at NSE. Thus, a census of all the 58 NSE listed firms was conducted. The study employed descriptive research design and secondary data was collected for a period of 5 years, from 2017 to 2021. Data was analyzed using descriptive statistics and panel data regression. Descriptive statistics involved determining the mean, the standard deviation, skewness and kurtosis for each variable under study. Panel data regression analysis established the nature and significance of the relationship between the study variables. Stata version 16 was employed to analyze the data. The analyzed data was presented using tables and charts. The findings of the study indicated that firm size, liquidity and profitability of the companies listed at the Nairobi securities exchange had a positive and statistically significant relationship with dividend payout. However, financial leverage was found to have a positive but insignificant effect on the dividend payout of the listed firms under study. The study recommended that the listed firms under study should focus on making their operations cost efficient and effective to maximize profits and should invest some resources in fixed assets but have more investments in liquid assets. The firms relying on loans to finance its operations should not focus on paying dividends to its shareholders but the immediate focus of these firms and finally the firms should focus on investing the profits accrued from the operations of the company back to the company to grow the company and make it stable.Item Financial Structure And Financial Intermediation Efficiency Of Deposit Taking, Saving And Credit Cooperative Societies In Kenya(KCA University, 2022) Shaai, Bornfas L.Financial structure is a concept that generally describes the manner in which a firm finances asset through the combination of both debts, equity and any other hybrid security. “Financial intermediation within the financial sector is very crucial in promoting financial services access as well as ensuring the financial sector stability as a key component of the financial system. Financial sector firms normally tend to exhibit a higher level of financial intermediation efficiency than firms in other sectors due to their ability to transform savings received primarily from household economic units into credit or loans for companies and others to invest in buildings, equipment and other capital goods. Therefore, by enhancing their efficiency, commercial banks are in a position to offer their financial services more effectively. SACCOs in Kenya play a very significant role in financial intermediation as savings through them translates to around 48.55% of the gross national savings. However, despite these developments, SACCOs are still facing numerous challenges especially in terms of their overall financial structure. For example, there was an increase in the amount of non-performing loan ratio on SACCOS to 6.30 percent back in 2018 down from 6.14 percent of what had been reported in 2017.Therefore, the study bridged this research gap by examining the relationship between capital structure and financial intermediation efficiency of deposit taking SACCOs in Kenya. The study adopted a descriptive research design. The study target population were all 174 DT-SACCOs in Kenya. Simple random sampling technique was adopted. The study utilized secondary data taken from the financial statements submitted by each DTS to SASRA. STATA was used for data analysis. The research was based on balanced panel data from 2017 to 2021. The study findings observed that leverage had a positive and significant effect on financial intermediation efficiency of DTS operating in Kenya. The results also indicated that non-withdrawable deposits held had a negative but statistically significant effect on financial intermediation efficiency of DTS. Further, it was observed that share capital had a positive and in significant effect on financial intermediation efficiency of DTS operating in Kenya. It was concluded that maintaining high-level leverage is very crucial for deposit-taking SACCOs in order to enhance their financial intermediation efficiency. It was also concluded that the amount of share capital that a DTS has in terms of ordinary share capital, preference share capital and reserves play a very crucial role in determining its overall financial intermediation efficiency. It was recommended that DTS in Kenya should always ensure that they always maintain high leverage level so as to ensure that they are able to diversify their investments as well as helping them to set out a threshold for the expansion of their business operations. It was also recommended that policy makers in Kenya that are concerned with DTS regulation should ensure that that DTS across the country implement and adopt effective and sound financial structure decisions in order to enhance their financial intermediation efficiency and thus minimize the instances of DTS plunging into financial crisis that has caused many people across the country to lose a lot of money in the past.Item Effect Of Financial Performance On Treasury Funding Of Public Institutions In Kenya(KCA University, 2015) Ngui, Josephine N.Recent studies have observed that government institutions are burdened with financial management risks that comprise the acquisition, allocation and investment of funds in the various budgetary considerations. This study will be to examine the effects of financial performance of public institutions on treasury funding. The study will used correlation design. The study was based on secondary data that was obtained from the annual financial reports on the 12 public institutions under study. The target population was all the fully owned public companies by the government. There were 81 fully owned entities by the government. A sample of 12 public entities was considered for this study. Secondary data was gathered from the financial reports of the institutions over the ten year period, Year 2004 to Year 2013.We considered these methods because it was the most economical way of data collection compared to others. Panel data analysis was used for analysis since it involves the funding and financial performance of the twelve institutions over the ten-year period. Regression and Correlation analysis was used to establish the relationship between the government funding and financial performance of public institutions. Results of the study revealed a positive insignificant relationship with treasury funding. There was a positive significant relationship between liquidity and treasury funding while leverage had a negative and significant relationship with treasury funding. There is need to improve financial planning and forecasting to increase liquidity levels in public institutions.