Relationship between Interest Rates and Gearing Ratios of Firms Listed in the Nairobi Securities Exchange

2016 ◽  
Vol 1 (1) ◽  
pp. 30
Author(s):  
Billy Muthee ◽  
Dr. J Adudah ◽  
Hendrick Ondigo
Keyword(s):  
Interest Rates ◽  
Firm Size ◽  
Longitudinal Research ◽  
Negative Relationship ◽  
Secondary Data ◽  
Annual Reports ◽  
Longitudinal Research Design ◽  
Growth Firms ◽  
The Relationship ◽  
Interest Expense

Purpose: The objective of this study was to establish the relationship between interest rates and gearing ratios of firms listed in the Nairobi Securities Exchange.Methodology: The study was carried out using a longitudinal research design, employing secondary quantitative data. The population for this study constituted of all listed companies in the Nairobi Securities Exchange. As at December 2013, there are 62 companies listed on the Nairobi Securities Exchange. This study did not sample and hence a census survey was carried out for the study. The study used secondary data. All the data was collected by review of documents, annual reports of the companies, the Nairobi Securities Exchange Handbooks and published books of accounts. The selected period was year 2009 to year 2013 (5 years).The researcher used frequencies, averages and percentages in this study. The researcher used Statistical Package for Social Sciences (SPSS) to generate the descriptive statistics and also to generate inferential results. Regression analysis was used to demonstrate effect of interest rate on the gearing ratio of listed firms.Results: These results showed that there is a negative relationship between gearing ratio and interest expense and profitability as supported by beta coefficients of -0.486 and -0.129 respectively. Firm size had a positive correlation (0.275), which means that an increase in firm size causes an increase in the gearing ratio. The analysis also yields results that showed that interest expense, firm size and profitability were statistically significant.Unique contribution to theory, practice and policy: the study recommended that; the firms should adopt strategies that increase their firm size resulting to a scenario whereby they increase their collateral and thus granting them the ability to access more debt, firms should ensure that they optimize their profits so as to reduce their gearing ratio and thus cause growth, firms should seek to adopt other ways of financing their activities since interest expense had a negative relationship with gearing ratio.

scholarly journals Timeliness and Relevance of Financial Reporting in Nigerian Quoted Firms

2017 ◽  
Vol 4 (2) ◽  
pp. 55 ◽  
Author(s):  
John Ohaka ◽  
Fyneface N. Akani
Keyword(s):  
Financial Reporting ◽  
Firm Size ◽  
Stock Exchange ◽  
Secondary Data ◽  
Primary Objective ◽  
Annual Reports ◽  
Board Independence ◽  
Financial Reports ◽  
Relationship Of ◽  
The Relationship

Financial accounting standards emphasize timeliness as one of the key components of decision-driven informationalrelevance. Accordingly, if information is not available as and when due but rather made available so late that it bears novalue for future action, then it is operationally irrelevant. To fulfil their primary objective and be useful, therefore,financial reports are expected to be characterized by relevance, reliability, completeness, and timeliness. Against thisbackground, this study examined the relationship of firm size and board independence respectively to the timeliness offinancial reporting in companies quoted on the Nigerian Stock Exchange (NSE). Secondary data pertaining to the firmswere derived from their annual reports and the NSE Fact Book for 12 years (2000-2011). Analysis of the research datainvolved test of multicollinearity, heteroskedasticity, and autocorrelation; while the multiple regression techniquefacilitated the test of research hypotheses. The results established a significant relationship between firm size andtimeliness of financial reporting; while in the case of board independence, the relationship was not significant.Consequently, it is recommended that regulatory bodies should ensure better of enforcement of standards relating totimeliness so that financial reports of the firms will be of higher value to key stakeholders.

scholarly journals THE ROLE OF FIRM CHARACTERISTICS AND AUDIT COMMITTEE SIZE IN TIMELINESS OF FINANCIAL REPORTIN

2020 ◽  
Vol 7 (1) ◽  
Author(s):  
Merryani Merryani ◽  
Juanda Astarani
Keyword(s):  
Financial Reporting ◽  
Firm Size ◽  
Audit Committee ◽  
Stock Exchange ◽  
Secondary Data ◽  
Annual Reports ◽  
Firm Characteristics ◽  
Relationship Of ◽  
The Relationship

This study examines the relationship of firm characteristics and audit committeesize with Timeliness of Financial Reporting (TIML) among retailer trade companies listed in Indonesian Stock Exchange. This study focuses on three variables of firm characteristics (i.e., firm size, profitability, and leverage) and one variable of corporate governance (i.e., audit committee size). A quantitative method of analysis, secondary data from annual reports for the period of 2012 to 2016, and purposive sampling, was adopted. The results revealed that both profitability and leverage are negatively associated with TIML, yet no significant association was found regarding the firm size and audit committee size with TIML. On the other hand, the results also revealed that firm size, profitability, leverage, and audit committee size could enhance TIML since those variables are found to be simultaneously associated with TIML.Keywords: Timeliness, Financial Reporting, Reporting Lag

Pengaruh Hubungan Politik Terhadap Manajemen Laba Pada Perusahaan Sektor Jasa Dengan Variabel Kontrol Ukuran Perusahaan Dan Kualitas Audit

2018 ◽  
Vol 16 (2) ◽  
pp. 30
Author(s):  
Dwikky Darmawan ◽  
Weny Putri
Keyword(s):  
Earnings Management ◽  
Firm Size ◽  
Significant Influence ◽  
Service Sector ◽  
Audit Quality ◽  
Stock Exchange ◽  
Secondary Data ◽  
Annual Reports ◽  
Political Connection ◽  
Discretionary Accrual

The purpose of this study is to determine the effects of political connection toward the earnings management of service sector companies with control variables firm size and audit quality. Firm�s political connection measured by using dummy variable. Earnings management is proxied by discretionary accrual which is measured by using Modified Jones Model. The research data applied in this study are the secondary data which are taken from the annual reports of service sector companies that listed in Indonesian Stock Exchange of 2016-2017 periods. There are 330 observations fit as sample, which are taken by using purposive sampling method. Data are processed by applying the multiple linear regression test. The result show that the political connection had positive but not significant influence to earnings management. Firm size had negative but not significant influence to earnings management. Whereas the audit quality had a negative and significant influence to earnings management.

Good Corporate Governance, Profitabilitas, Ukuran Perusahaan dan Struktur Modal

2017 ◽  
Vol 9 (1) ◽  
pp. 1-17
Author(s):  
Hesty Juni Tambuati Subing
Keyword(s):  
Capital Structure ◽  
Board Of Directors ◽  
Firm Size ◽  
Stock Exchange ◽  
Secondary Data ◽  
Institutional Ownership ◽  
Annual Reports ◽  
Financial Reports ◽  
Basic Industry ◽  
The Capital Structure

The purpose of this research is to know about the effect of these factors Corporate Governane proxy by Institutional Ownership and Number of Board of Directors, Firm Size, and Return On Asset in basic industry and chemistry towards capital structure, and also to determine which of those factors having powerful effect to the capital structure. This research is using secondary data, such as the financial reports, annual reports and other related information of basic industry and chemistry listed in Indonesian Stock Exchange which sample were taken from 45 companies for the period of 2013 to 2014, and the choosing of these samples was based on the purposive sampling method. Panel data is used to test the effect of Institutional Ownership, Board of Directors, Return on Asset and Firm Size among as independent variables, in regard to capital structure as dependent variables. The result shows that only Return On Asset have significant effect to the Capital Structure in the basic industry and chemistry. Meanwhile Institutional Ownership, Board of Directors and Firm Size have no effect to the Capital Structure in the basic industry and chemistry. Keywords: Institutional Ownership, Board of Directors, Return On Asset, Firm Size, Capital Structure

Profitability and Firm Size–Growth Relationship in Construction Companies in Malaysia From 2003 to 2010

2014 ◽  
Vol 17 (03) ◽  
pp. 1450014 ◽  
Author(s):  
Devinaga Rasiah ◽  
David Yoon Kin Tong ◽  
Peong Kwee Kim
Keyword(s):  
Growth Rate ◽  
Firm Size ◽  
Growth Process ◽  
Secondary Data ◽  
Annual Reports ◽  
Basic Study ◽  
Gibrat’S Law ◽  
Construction Companies ◽  
Gibrat's Law ◽  
Size Growth

In this study, we intended to examine empirically how a firm's profitability performance would impact its growth process and the inference for Gibrat's Law. The basic study looks at small, medium and large firms' tendency to grow when their internally generated profits are high. The sample is 124 construction companies listed from years 2003 to 2010 at BURSA Malaysia. Data used is secondary data collected from BURSA Malaysia and annual reports. The result indicated that "growth" contributed significantly to profitability in both small and medium-sized construction companies, but was not significant in large companies. Thus, hypothesis two was supported. This study supports Gibrat's Law, showing that size and growth rate are independent.

scholarly journals Organizational Performance, Firm Size and Chief Executive Officer’s (CEO’S) Compensation for Firms Listed in Nairobi Securities Exchange, Kenya

2019 ◽  
Vol 7 (06) ◽  
Author(s):  
Omamo Anne ◽  
Peter K’ Obonyo ◽  
Florence Muindi
Keyword(s):  
Organizational Performance ◽  
Firm Size ◽  
Balanced Scorecard ◽  
Secondary Data ◽  
Chief Executive ◽  
Primary Data ◽  
Financial Indicators ◽  
The Balanced Scorecard ◽  
Listed Firms ◽  
The Relationship

This study examined the link between organizational performance, firm size and CEO’S compensation of firms listed at the NSE. Past studies on the determinants of CEO’S compensation revealed a lack of consensus to the explanation of increases in CEO’S compensation. While most of the studies confirm linkages between organizational performance and CEO’S compensation, they measured organizational performance using financial indicators of performance, the current study investigates the relationship between organizational performance and CEO’S compensation but differs from the previous studies by expanding the measures of organizational performance to include the balanced scorecard measures of financial indicators, customer satisfaction, internal processes and learning and growth elements of performance. Additionally, the study sought to find out the moderating role of firm size on the relationship between organizational performance and CEO’S compensation. The theoretical foundation of this study was based on agency theory. A conceptual model and conceptual hypothesis were drawn from literature and provided directions for this study. The study’s population constituted 60 firms listed at the NSE. Descriptive crossectional survey was adopted for this study. Primary data was collected to capture the opinion of board members on factors that determine levels of CEO’S compensation using semi structured questionnaire. Secondary data was gathered from the financial statements of the listed firms for 2015-2016 financial periods. Descriptive statistics and stepwise regression were used to analyze and interpret the collected data. The study revealed that there was significant and positive relationship between organizational performance and CEO’S compensation. The study further found that firm size had a significant moderating effect on the relationship between organizational performance and CEO’S compensation.  

scholarly journals THE MODERATING EFFECT OF INDEPENDENT COMMISIONERS ON FINANCIAL POLICY AND PUBLIC OWNERSHIP TOWARD CORPORATE FINANCIAL PERFORMANCE

2020 ◽  
Vol 2 (2) ◽  
pp. 139
Author(s):  
Niko Silitonga
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Measurement Instrument ◽  
Secondary Data ◽  
Sampling Technique ◽  
Annual Reports ◽  
Corporate Financial Performance ◽  
Financial Policy ◽  
Public Ownership ◽  
The Relationship

<p align="center"><strong>Abstract</strong></p><p><em>The corporate financial performance is one of the measurement instrument whether the company is sustainable. This study aims to determine the effect of financial policy and public ownership on corporate financial performance with Independence of commissioners as a moderating variable in mining companies listed on Indonesia Stock Exchanges. This research uses a quantitative research model using secondary data. The data in this study were processed by the Moderating Regression Analysis (MRA) method supported by the IBM SPSS and Microsoft Excel programs as support software with data analysis techniques in the form of a classic assumption test and R2 test, F test, and t test. The population in this study are companies that have reported annual reports consistently during the 2014-2017 period. This study used a purposive sampling technique and obtained as many as 19 companies in accordance with predetermined criteria. The results of this study indicate that financial policy proxied by debt policy (DER) has a significant and positive effect on corporate financial performance, public ownership has no significant effect on corporate financial performance, independence commissioners strengthen the relationship between financial policy on corporate financial performance and independence commissioners do not has a moderating role between the relationship between Public Ownership and corporate financial performance. This study uses data from mining sector companies, it is recommended for further research to use other sectors such as: Property &amp; Real Estate Sector, Manufacturing Sector, and others listed on the Indonesia Stock Exchange.</em> <em>The implications of this study for the company management, this research can provide input to the company to be able to choose and use an independent commissioner who fulfills expertise in the financial and business fields of his company in order to make a decision on his company's financial policy.</em></p><strong>Keywords:</strong> <em>Independence of Commissioners, Financial Policy, Public Ownership, Corporate Financial Performance</em>.

scholarly journals ANALISA FAKTOR – FAKTOR YANG BERPENGARUH TERHADAP KETEPATAN WAKTU PELAPORAN KEUANGAN (STUDI EMPIRIS PADA PERUSAHAAN OTOMOTIF DAN KOMPONEN DAN TELEKOMUNIKASI YANG TERDAFTAR DI BURSA EFEK INDONESIA)

2016 ◽  
Vol 11 (2) ◽  
pp. 1
Author(s):  
Joko Suryanto ◽  
Indra Pahala
Keyword(s):  
Financial Reporting ◽  
Firm Size ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Public Ownership ◽  
Audit Opinion ◽  
Independent Variables ◽  
Equity Ratio ◽  
The Relationship

This research aims to examine the effect of the relationship between firm size, profitability, solvency, public ownership, and the audit opinion on the timeliness of financial reporting. The dependent variable in the form of timekeeping company deliver the financial statements to the Stock Exchange. Meanwhile for the independent variables such as firm size measured by total asets of the company, profitability is measured by profit margin ratio, solvency measured by debt-to-equity ratio, public ownership is measured by the percentage of the number of shares owned by the community, and the audit opinion is measured with an unqualified opinion and otherwise unqualified. This study uses secondary data with population automotive companies and telecommunications components and annual financial statements issued on the Stock Exchange in the period 2010-2012. From the analysis conducted in this study it can be concluded that the size of the company significantly influence the timeliness of financial reporting. While profitability, solvency, public ownership, and the audit opinion does not affect the timeliness of financial reporting.   Keywords:       Company Size, Profitability, Solvency, Public Shareholding, Opinion Audit and Financial Reporting Timeliness.

scholarly journals Performance of Islamic banks

2019 ◽  
Vol 11 (2) ◽  
pp. 303-321 ◽  
Author(s):  
Abdalmuttaleb Musleh Alsartawi
Keyword(s):  
Negative Relationship ◽  
Multiple Linear Regression Model ◽  
Annual Reports ◽  
Islamic Banks ◽  
Return On Assets ◽  
Content Type ◽  
Gcc Countries ◽  
Governance Model ◽  
Supervisory Boards ◽  
The Relationship

Purpose This paper aims to investigate the relationship between the composition of Sharīʿah supervisory boards (independence and frequency of meetings) and the performance of Islamic banks in the Gulf Cooperation Council (GCC) countries. Design/methodology/approach The study developed a multiple linear regression model, and data were collected from the annual reports of 48 standalone Islamic banks listed in the GCC countries covering the period between 2013 and 2017. Findings The results showed a statistically significant and negative relationship between the composition of the Sharīʿah supervisory boards and the performance of Islamic banks. Research limitations/implications As the current study used only one indicator, that is Return on Assets to measure performance, it is recommended to expand the framework of this study, through the addition of market-based performance indicators such as Tobin’s Q. Practical implications This study recommends the GCC countries to follow a more proactive Sharīʿah governance model to strengthen their frameworks from both regulatory and non-regulatory aspects. Originality/value The study contributes to the Sharīʿah governance and Islamic banking literature relating to the GCC countries as previous studies gave no attention to the composition of Sharīʿah supervisory boards.

scholarly journals Board Characteristics and Firm Performance: Case of Saudi Arabia

2012 ◽  
Vol 2 (2) ◽  
pp. 168 ◽  
Author(s):  
Mohammad Ahid Ghabayen
Keyword(s):  
Firm Performance ◽  
Audit Committee ◽  
Negative Relationship ◽  
Study Data ◽  
Annual Reports ◽  
Board Composition ◽  
Board Size ◽  
Board Characteristics ◽  
The World ◽  
The Relationship

ABSTRACTCorporate governance (CG) has received much attention in the current studies all over the world especially after many corporate scandals and the failures of some biggest firms around the world such as Commerce Bank (1991) Enron (2001), Adelphia (2002), and World Com (2002).The aim of this study is to examine the relationship between board mechanisms (audit committee size, audit committee composition, board size, and board composition) and firm performance (ROA) based on the annual reports of listed companies in the year 2011 of  sample of non-financial firms in the Saudi Market (Tadawul). For the purpose of this study, data was collected from a sample of 102 non-financial listed companies.Furthermore, an analysis of regression analysis is utilized to examine the relationship between board characteristics and firm performance. The results of this study reveal that audit committee size, audit committee composition and board size have no effect on firm performance in the selected sample while board composition has a significant negative relationship with firm performance.

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