scholarly journals DETERMINANTS OF FINANCIAL PERFORMANCE AMONG SAVINGS AND CREDIT CO-OPERATIVE SOCIETIES IN KAKAMEGA COUNTY KENYA

2018 ◽  
Vol 3 (1) ◽  
pp. 1
Author(s):  
Emily Esokomi ◽  
Dr. Mbithi Mutua
Keyword(s):  
Financial Performance ◽  
Survey Design ◽  
Pearson Correlation ◽  
Correlation Coefficients ◽  
Secondary Data ◽  
Sampling Technique ◽  
Target Population ◽  
Risk Identification ◽  
Annual Reports ◽  
Return On Equity

Purpose: The main objective of this study was to investigate determinants of financial performance of Savings and Credit Co-operative Societies in Kakamega County. Methodology: This study used a descriptive survey design. The target population for this study was 44 SACCOs in Kakamega County. The study used census sampling technique. Secondary data was obtained from Audited Annual Reports of the 44 SACCOs in Kakamega County- Kenya. The data was analyzed using the Statistical Packages for Social Sciences (SPSS). Analysis of the data collected focused on both the descriptive statistics (trends) and inferential statistics (Pearson Correlation Coefficients and multiple regression coefficients. The analyzed data was presented in frequency tables and graphs. Regression analysis was used to establish the relationship between the independent and dependent variables. Results: The study findings revealed that liquidity and return on equity were positively and significantly related, results further indicate that capital structure and return on equity were positively and significantly related. It was further established that assets quality was negatively and significantly related to return on equity. Similarly, results showed that income diversification was positively and significantly related to return on equity Policy recommendation: The study recommends that all SACCO’s managers should be trained on the deployment of efficient systems to strengthen liquidity risk control fundamentals, that SACCOs should capitalize on efficient mobilization of members’ savings and borrow less, unless they get cheap sources of external funds such as soft loans, that the Saccos should improve their investment assets levels and improve assets quality by reducing the rate of nonperforming loans through credit risk identification.

EFFECT OF RISK MANAGEMENT FUNCTION ON FINANCIAL PERFORMANCE OF SAVINGS AND CREDIT CO-OPERATIVE SOCIETIES IN KENYA

2017 ◽  
Vol 2 (5) ◽  
pp. 38
Author(s):  
Jackson Mnago Ndungo ◽  
Dr. Olweny Tobias ◽  
Dr. Memba Florence
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Pearson Correlation ◽  
Secondary Data ◽  
Sampling Technique ◽  
Target Population ◽  
Primary Data ◽  
Independent Variables ◽  
Management Function ◽  
Management Techniques

Purpose: The main objective of the study was to establish effect of risk management function on financial performance of savings and credit co-operative societies (SACCOs). The total assets of SACCOs grew from 257 billion to 301.5 billion while total deposits increasing from 182.7 billion to 205.9 billion from December 2013 to December 2014 financial years (SASRA, 2014). With savings of kes. 380 billion and asset base of Kshs. 493 billion, SACCOs control 39 percent of total loan accounts in Kenya (SASRA, 2012). Howevwer, some SACCOs have gone under liquidation thus putting billions at risk. This has led to the introduction of CRBs to control all financial institutions to reduce the information asymmetry effects between lenders and borrowers. The target population was 181 and a sample of 135 licensed deposit taking SACCOs as at 31st December 2014 was used. Stratified random sampling technique was used for each type or category. Secondary data from publications, CRBs, journals and financial records was used. Primary data was collected using structured questionnaires which had both close ended and open ended questionnaires. The study used multiple regression and Pearson correlation to test for significance and relationship respectively of the independent variables and the dependent variable.Findings: The findings indicated that risk management function had a positive and significant effect on financial performance of SACCOs in Kenya.Recommendation: The study recommends that lenders should review their risk management techniques regularly in order to coup with the rapid advances in technological changes. The study also recommended that SACCOs should always subject their clients to credit reference bureaus whenever they grant a loan.

scholarly journals EFFECT OF CONSUMER PROTECTION FUNCTION ON FINANCIAL PERFORMANCE OF SACCOS IN KENYA

2016 ◽  
Vol 1 (2) ◽  
pp. 48
Author(s):  
Jackson Mnago Ndungo’ ◽  
Dr. Olweny Tobias ◽  
Dr. Memba Florence
Keyword(s):  
Correlation Analysis ◽  
Financial Performance ◽  
Consumer Protection ◽  
Causal Effect ◽  
Pearson Correlation ◽  
Secondary Data ◽  
Target Population ◽  
Descriptive Statistics ◽  
Accurate Information ◽  
Inferential Statistics

Purpose: The study sought to determine the effect of consumer protection function on financial performance of SACCOs in Kenya.Methodology: The study adopted a descriptive research design. The target population comprised of registered 181 deposit-taking SACCOs as at 31st December 2014 and the three licensed CRBs in Kenya. Stratified random sampling was used in the study, where SACCOs were grouped into five respective strata which were then randomly selected. The SACCOs were grouped into five respective strata of government based, teachers based, farmers based, private institutions based and community based. The study sampled 135 of the 181 (74.5%) licensed deposit taking SACCOs since these were the only licensed deposit-taking SACCOs by 2014. The choice of the licensed deposit taking SACCOs in Kenya was very objective since it was possible to obtain information that is representative of Kenya. In addition, SACCOs form the smaller arm in the financial sector and in most cases deals with a larger group of clients from the informal sector as opposed to other financial institutions like banks. Both primary and secondary data were analyzed using SPSS software, and statistics generated included descriptive statistics and inferential statistics. The particular descriptive statistics used included frequencies and percentages while the particular inferential statistics included Pearson correlation analysis and regression. Correlation analysis was used to establish relationships between the consumer protection function and financial performances. Regression analysis was used to establish the significance of the variables and the degree of causal effect of the independent variables on the dependent variable. The hypotheses testing were conducted using simple regression model.Findings: From the data analysis the study concluded that there was a significant and positive relationship between consumer protection function and financial performance thus the existence of credit reference bureaus was suitable for improving financial performance of SACCOs. This implies that that Credit reference bureaus have led to consumer protection and increased customers’ rights. Similarly, credit reference bureaus have led to assumption that borrowing is a right regardless of capabilities. Credit reference bureaus have reduces undesired monopolistic actions of lenders. Lastly, credit reference bureaus have led to reduced bad “culture” on loan repayment.Recommendation: The study recommended that lenders should ensure that they have accurate information before listing the unworthy borrowers to avoid unnecessary legal battles which may affect performance as a measure for customer rights protection.

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 BOARD OF DIRECTORS QUALIFICATION AND COMPOSITION: STUDY OF ITS IMPACT ON SERVICE SECTOR OF INDIA

2021 ◽  
Vol 9 (1) ◽  
pp. 1213-1219
Author(s):  
Rahul Singhal , Vikhyat Singhal, Ritesh Kumar Singhal, Ajay Singh
Keyword(s):  
Board Of Directors ◽  
Service Sector ◽  
Negative Impact ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Target Population ◽  
Annual Reports ◽  
Return On Equity ◽  
Return On Capital

The purpose of this study was to determine the effects of education and composition of Board of Directors on the performance of firms listed at the Bombay Stock Exchange (BSE). The target population of this explanatory research study comprises of top performers of service sector firms listed at the Bombay Stock Exchange. The secondary data from the financial statements and annual reports of the listed companies covering the year 2015-19 was considered for the study. The correlation matrix and linear regression analysis technique was used to determine the effect of independent variables i.e. size of board, proportion of board with post-graduation qualification and proportion of independent directors in the board on the dependent variable i.e. return on equity and return on capital employed. The study findings indicate size of BODs and independence of BODs has insignificant and negative impact on the firm performance. On the other hand percentage of directors having post-graduation degree has positive and notable impact on the performance of the firm.

scholarly journals PENGARUH CORPORATE GOVERNANCE TERHADAP PROFITABILITAS PERUSAHAAN

2018 ◽  
Vol 12 (1) ◽  
pp. 54-58
Author(s):  
Nungky Wanodyatama Islami
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Sampling Method ◽  
Stock Exchange ◽  
Secondary Data ◽  
Sampling Technique ◽  
Annual Reports ◽  
Return On Equity ◽  
Positive Effect ◽  
Analyze Data

This study aims to analyze the effect of corporate governance as measured by the variables of the board of commissioners, the proportion of independent members of the board of commissioners, the number of board of commissioners and audit committee meeting on the profitability of the company as measured by return on equity (ROE). The population used in this study is a manufacturing company listed on the Indonesia Stock Exchange during 2013-2016. Sampling technique used in this research is purposive sampling method and obtained 48 samples. This study uses secondary data from annual reports obtained from Indonesia Stock Exchange (BEI) in the period 2013-2016. The method of analysis used to analyze data is multiple regression. Based on the results of hypothesis testing in this study, it is evident that (1) the size of the board of commissioners has a positive effect on the profitability of the company. (2) the proportion of independent members of the board of commissioners positively affects the profitability of the company. (3) the board of commissioners meeting positively affect the profitability of the company. (4) audit committee negatively affect the profitability of the company. 

scholarly journals Relationship between Implementation of Safety Standards and Guidelines for Physical Infrastructure, and Student Safety in Public Mixed Boarding Secondary Schools in Nakuru County, Kenya

2020 ◽  
Vol 2 (1) ◽  
pp. 275-285
Author(s):  
Sigei Jackline; Dr. Betty J. Tikoko; Prof. Frederick B. J. A Ngala
Keyword(s):  
Secondary Schools ◽  
Survey Design ◽  
Pearson Correlation ◽  
Sampling Technique ◽  
Simple Random Sampling ◽  
Target Population ◽  
University Supervisors ◽  
Safety Standards ◽  
Physical Infrastructure ◽  
Standards And Guidelines

The study aimed at finding out the relationship between implementation of Safety Standards and Guidelines for Physical Infrastructure in public mixed boarding secondary schools in Nakuru County, Kenya.  The study was guided by Invitational Theory by Purkey and Schmidt and Systems Theory by Von Bertalanffy. The target population was 16 principals, 18 deputy principals and 2130 Form 4 students drawn from all 16 public mixed boarding secondary schools in the county. The study adopted a descriptive survey design. The sample size comprised 327 Form 4 students. A census approach was used. . The population of the study was clustered into 9 sub counties. Stratified sampling technique was used to categorize the population into three strata namely principals, deputy principals and Form 4 students. The principals and deputy principals were selected using purposive sampling technique, while the students were selected using simple random sampling technique.  Data from students was collected by use of questionnaires, while that from principals and deputy principals was collected using interview schedules. The researcher also used observation checklist to determine the level of implementation of the selected Safety Standards Guidelines in the schools. Prior to use, the instruments were subjected to validity checks with the help of university supervisors and reliability tests guided by the 0.7 Cronbach’s Alpha Reliability Coefficient level. Data analysis was done using tools in the SPSS version 22. Analysis involved computation of descriptive statistics: frequencies and percentages, and inferential statistics: Pearson Correlation and Regression coefficients. The data was then presented in tables and textually.

scholarly journals Equity Investments, Bond Investments and Financial Performance of Collective Investment Schemes in Kenya

2021 ◽  
Vol 10 (3) ◽  
pp. 104-114
Author(s):  
Jacinta Nzilani Muema ◽  
Job Omagwa ◽  
Lucy Wamugo
Keyword(s):  
Financial Performance ◽  
Capital Markets ◽  
Secondary Data ◽  
Target Population ◽  
Efficient Market Hypothesis ◽  
Annual Reports ◽  
Financial Returns ◽  
Significance Level ◽  
Insignificant Effect ◽  
Equity Investments

The collective investment schemes in Kenya have witnessed increased volatility in their earnings, resulting in irregular growth in the industry. This necessitates the need to understand the factors contributing to poor financial returns from collective investment schemes. Hence this study sought to investigate the effect of equity investments and bond investments on Kenyan CIS’s performance. The specific objectives were: To assess the effect of equity investments, bond investments on financial performance of collective investment schemes in Kenya. The study was anchored on: modern portfolio theory and the efficient market hypothesis. The positivism philosophy was applied, with the firms adopting an explanatory research design. The target population was 17 Collective Investment Schemes registered by the Capital Markets Authority and were operational in the period 2010 to 2018.  Secondary data was sought from the Capital Markets Authority Annual reports and from the respective websites of the CIS’. Data was analyzed using descriptive statistics, correlational analysis and panel regression analysis. Hypotheses were tested at a significance level of 0.05. Findings indicate that equity investment, bond investments have an insignificant effect on CIS’ return on assets. Further, equity investments had a positive and significant effect on liquidity whereas bond investments had an insignificant effect on liquidity. The study recommends that CISs actively revise their equity investments and bond investments to stimulate financial returns.

scholarly journals Competitive Intelligence Practices And Performance Of Firms Listed On The Nairobi Securities Exchange, Kenya

2016 ◽  
Vol 12 (19) ◽  
pp. 107
Author(s):  
Paul Waithaka
Keyword(s):  
Financial Performance ◽  
Secondary Data ◽  
Target Population ◽  
Business Environment ◽  
Competitive Intelligence ◽  
Annual Reports ◽  
Primary Data ◽  
Financial Measures ◽  
Listed Firms ◽  
And Performance

Performance is critical for every listed firm, as it enhances shareholder’s value and capability to generate earnings from invested capital. Some of the firms listed on the Nairobi Securities Exchange (NSE) have been performing poorly as indicated by the rising number of firms issuing profit warnings. The competitive business environment is continuously working to drive down the rate of return on invested capital. To counter these competitive forces, firms have resorted to gathering information at their disposal and converting it into competitive intelligence through analysis and human judgment. This study sought to determine the effect of competitive intelligence practices on performance of firms listed on the NSE. Firm performance was evaluated using both financial and non-financial measures. The non-financial measures used in the study were goal achievement and customer satisfaction, while Return on Assets (ROA) and Return on Equity (ROE) were the financial measures used. The target population was the sixty firms listed on the Nairobi securities exchange. Primary data was collected using a semi-structured questionnaire; while secondary data was obtained from the firm’s published annual reports available at the NSE using a document review guide. Quantitative data was analyzed using both descriptive and inferential statistics. The findings indicate that competitive intelligence practices have a positive and a statistically significant effect on the non-financial performance of firms listed on the Nairobi Securities Exchange. The intelligence practices were found to have a positive but statistically insignificant effect on the financial performance of listed firms. Managers of listed firms should raise the utilization level of competitive intelligence practices to enable the firms to make accurate predictions on changes in the business environment, compete better in the marketplace against rivals, improve on innovation and automation, track competitors’ activities and improve the competitiveness of their firms by identifying threats and opportunities before they become obvious. The study suggests that future researches should focus on extending knowledge on competitive intelligence practices to non-listed corporate sector firms to support the generalization of the findings to all sectors in the economy.

scholarly journals Determinan Nilai Perusahaan Dengan Kinerja Keuangan Sebagai Variabel Intervening

2021 ◽  
Vol 5 (2) ◽  
pp. 173-190
Author(s):  
Tri Neliana ◽  
Rina Destiana
Keyword(s):  
Financial Performance ◽  
Firm Value ◽  
Audit Committee ◽  
Quantitative Methods ◽  
Stock Exchange ◽  
Secondary Data ◽  
Sampling Technique ◽  
Institutional Ownership ◽  
Annual Reports ◽  
Manufacturing Companies

This study aims to show the effect of institutional ownership, audit committee size, and corporate social responsibility (CSR) on firm value with financial performance as the intervening variable. This study uses quantitative methods with secondary data sources in company annual reports. The population of this study is manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2018-2020 period. The sampling technique used purposive sampling to obtain a sample of 74 companies. The data analysis technique used path analysis. The results showed that financial performance had a positive and significant effect on firm value. Institutional ownership and size of the audit committee do not affect financial performance. Meanwhile, CSR has a positive and significant effect on financial performance. Institutional ownership and the size of the audit committee have a positive and significant effect on firm value. At the same time, CSR does not affect the company's value. Institutional ownership does not affect firm value through financial performance. At the same time, the size of the audit committee and CSR affects the company's value through financial performance. This study can reference company management and investors in developing companies and investing.

Analisis Perbedaan Abnormal Return dan Kinerja Keuangan Perusahaan Sebelum dan Sesudah Merger atau Akuisisi

2014 ◽  
Vol 6 (2) ◽  
pp. 18-38
Author(s):  
Steffi Aprilda Natasya Lim ◽  
Suhajar Wiyoto
Keyword(s):  
Financial Performance ◽  
Abnormal Return ◽  
Stock Exchange ◽  
Secondary Data ◽  
Annual Reports ◽  
Financial Reports ◽  
Asset Return ◽  
Return On Equity ◽  
Before And After ◽  
The Difference

The objective of this research is to examine the difference of abnormal return, and companies’ financial performance, before and after merger or acquisition. The companies’ financial performances are projected by financial ratios, which are return on asset and return on equity. This research is expected to help economic actors in making economic decisions related to merger and acquisition. The samples in this study are 11 companies that listed in Indonesia Stock Exchange (Bursa Efek Indonesia) in the year 2010-2011, except financial sectors and done corporate action merger or acquisition. The sample in this study determined based on purposive sampling. Data used in this study is secondary data such as annual reports or financial reports. The results from this study are (1) there is no difference of abnormal return before and after merger or acquisition (2) there is no difference of companies’ financial performance that projected by return on asset before and after merger or acquisition (3) there is a difference of companies’ financial performance that projected by return on equity before and after merger or acquisition. Keywords: abnormal return, return on asset, return on equity, merger, acquisition

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