scholarly journals THE EFFECT OF ORGANIZATIONAL STRUCTURE ON FINANCIAL PERFORMANCE OF COMMERCIAL STATE CORPORATIONS IN KENYA

2018 ◽  
Vol 3 (2) ◽  
pp. 72
Author(s):  
John Ndwiga Njiru ◽  
Dr.Winnie Nyamute
Keyword(s):  
Organizational Structure ◽  
Financial Performance ◽  
Size Structure ◽  
Unique Contribution ◽  
Organizational Size ◽  
Executive Directors ◽  
Visual Aids ◽  
Policy And Practice ◽  
Corporate Governance Mechanisms ◽  
Structure Complexity

Purpose: The main purpose of this study was to determine effect of organizational structure on financial performance of commercial state corporations in Kenya. Methodology: The study employed a survey research design and targeted all the 34 commercial state corporations in Kenya. The study used both structured / closed ended and unstructured / open ended questionnaires to collect data. Both qualitative and quantitative was analyzed. Inferential statistics was employed whereby correlation and multiple linear regression was used to establish a relation between and among the studied variables. A statistical Package for social sciences (SPSS) was used to analyze data. The analyses data was presented graphically by visual aids such as Figures and Tables. Results: The findings obtained concluded that, organizational size, structure formalization, structure complexity and structure centralization affected the financial performance of commercial state corporations. Also it was establish that the number of non-executive directors affected the performance of the commercial state corporation is a challenge the board faced. It was further deduced that the organizational structure affected the financial performance of the commercial state corporations. Unique Contribution to Theory, Policy and Practice:  The study recommends that the board size and composition be considered since they affect the financial performance of the commercial state corporations, the number of non-executive directors needs to be selected well, the board needs to comprise of well-educated people since they are actively involved in shaping Commercial state corporations’ strategy, on-executive directors be trained on internal corporate governance mechanisms, and also ownership concentration needs to be reduced to avoid few people controlling the financial performance of the organization.

Influence of Islamic Auto Financing Instruments on Financial Performance of Commercial Banks in Isiolo County Kenya

2021 ◽  
Vol 6 (1) ◽  
pp. 70-85
Author(s):  
Abdi Huka Halake ◽  
Dr. Nancy Rintari ◽  
Fredrick Mutea
Keyword(s):  
Financial Performance ◽  
Customer Service ◽  
Commercial Banks ◽  
Secondary Data ◽  
Unique Contribution ◽  
Validity And Reliability ◽  
Policy And Practice ◽  
Loan Officer ◽  
Loan Officers ◽  
Isiolo County

Purpose: The purpose of the study was to explore the influence of Islamic auto financing instruments on financial performance of commercial banks in Isiolo County Kenya. Methodology: This study used descriptive research design. The respondents were customer service officers and loan officers in the ten commercial banks in Isiolo County. They were be selected using census method. Data collection was done using closed-ended questionnaires and secondary data collected through analysis of report from 2017 to 2020. To ensure validity and reliability, pre-testing of questionnaires was done at Kenya Commercial Bank in Meru town. Coded data in SPSS 24.0 computer program analyzed quantitative and qualitative data using the descriptive statistics such as mean, percentage and standard deviation. Multiple regression was used to test hypothesis of the study. Tables, graphs and detailed explanations were used to present the final results of the study. Results: Options had a statistically significant relationship with financial performance. The respondents agreed that the lending terms of Islamic automobile financing have attracted diverse clients (mean of 4.78). However, in comparison with other statements, the respondents did not tally that having sharia committee in disbursing car loans had enabled clients have confidence with the automobile loans (mean of 3.83). The R value was 0.862 and R-square of 0.743. This indicated that Islamic auto financing instruments’ level of contribution towards financial performance was 74.3%. The Durbin- Watson value was 1.969. This value lied between 0 and 2 hence indicating that there was a positive correlation between auto financing instruments and financial performance. The significance value was 0.000 which was below 0.05 hence Islamic Auto financing instruments had a significant influence of financial performance. In addition, the respondents did not tally that having sharia committee in disbursing car loans had enabled clients have confidence with the automobile loans. This proved that the confidence that clients had on auto financing, was not purely on the nature and process of administration of the financing but also due to reliability. Unique contribution to theory, policy and practice: The study recommends that auto financing should be provided reliably by ensuring all client concerned are amicably handled by the banking staff. The various car loan officer should be trained on good customer service to as to ensure they sell well their products without necessarily losing new clients. The bank management should also diversify auto financing to cater for all categories of vehicles for expansion of their client base.

scholarly journals Effect of Control Functions on the Financial Performance of Saccos in Meru County

2020 ◽  
Vol 5 (1) ◽  
pp. 32
Author(s):  
Ann Kinya Nyumoo ◽  
Prof. Felix Mwambia ◽  
Dr. Nancy Rintari
Keyword(s):  
Organizational Structure ◽  
Financial Performance ◽  
Goodness Of Fit ◽  
Design Method ◽  
Multiple Regression Equation ◽  
Functional Requirements ◽  
Policy And Practice ◽  
Cross Sectional ◽  
Control Functions ◽  
The Right

Purpose: To examine the effect of control functions on the financial performance of Saccos in Meru County.Methodology: The study adopted a cross-sectional mixed design method. The study targeted a sample size of 96 respondents arrived by multiplying 4 respondents in the 24 Saccos as a basis of analysis who were operation managers, senior risk managers, internal auditors and accountants in the 24 Saccos selected Saccos in Meru County. Data was collected through use of closed-ended questionnaires and the output presented descriptively by use of mean and standard deviation. Inferential statistics such as correlation coefficient β, coefficients of determination R and P-values was used from a multiple regression equation to measure the direction, strength and significance of the relationship between control activities and financial performance of Saccos. ANOVA was utilized to verify the goodness of fit of the model.Results: The study indicated that there was significant relationship between control functions and financial performance of Saccos in Meru County.Unique contribution to theory, policy and practice: The study contributed uniquely that there was a positive effect of control functions on the financial performance of Sacco banks in Meru County. The control functions should be readily available and continually updated by Sacco managers as they are the heart of the Saccos. If the functions are not working then it means the operations will eventually be paralyzed. This can be achieved by ensuring the guiding policies and guidelines are always available at the disposal of the user. Reviews should also be done regularly by Sacco regulators such as SASRA so as to ensure they are not outdated and to match the changing needs of the market and functional requirements. It is also recommended that physical control should always be done by operations heads in Saccos to avoid laxity from the operations. The approach of contingency theory to the study explained how the design and function of organizations are affected by conditional factors such as technology, organization customs, and the external environments. Different organizations have different organizational structure and their effectiveness is determined by a blend of the right type of organizational structure, organization size, environmental volatility, and technology. When the functions are well controlled by Sacco boards, updated performance of the entire system is enhanced.

scholarly journals A Study on Ownership Structure and Financial Performance of Listed Beverage Food and Tobacco Companies in Sri Lanka

2017 ◽  
Vol 7 (2) ◽  
pp. 36
Author(s):  
Saseela Balagobei ◽  
Thirunavukkarasu Velnampy
Keyword(s):  
Sri Lanka ◽  
Financial Performance ◽  
Ownership Structure ◽  
Relevant Literature ◽  
Foreign Ownership ◽  
Study Data ◽  
Secondary Sources ◽  
Correlation And Regression Analysis ◽  
Corporate Governance Mechanisms ◽  
The Impact

The relevant literature suggests that ownership structure is one of the main corporate governance mechanisms influencing the scope of financial performance. The aim of this study is to investigate the relationship between ownership structure and financial performance of listed beverage food and tobacco companies for the period of 2010-2015. This study also examines the impact of ownership structure on financial performance. The sample consists of 10 listed beverage food and tobacco companies in Sri Lanka. In this study, data was collected from secondary sources and hypotheses are examined by using Pearson’s correlation and regression analysis. The results reveal that ownership concentration and foreign ownership structure are positively correlated with financial performance of listed beverage food and tobacco companies while institutional ownership structure isn’t significantly correlated with financial performance. It is also found that there is a significant impact of foreign ownership structure on financial performance. Higher the foreign ownership structure in listed beverage food and tobacco companies, the higher the financial performance which is preferable for the shareholders and it improves the wealth of companies.

scholarly journals Do Multinational Companies Practice Good Corporate Governance? Empirical Evidence from Bangladesh

2017 ◽  
Vol 7 (2) ◽  
pp. 96
Author(s):  
G. M. Wali Ullah ◽  
Sarwar Uddin Ahmed ◽  
Samiul Parvez Ahmed ◽  
Kazi Md. Jamshed
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Stock Returns ◽  
Governance Structure ◽  
Multinational Companies ◽  
Governance Mechanisms ◽  
Corporate Governance Structure ◽  
Corporate Governance Mechanisms ◽  
The Impact ◽  
The Way

Corporate Governance refers to the way an organization is directed, administrated or controlled. It includes the set of rules and regulations that affect the manager's decision and contribute to the way company is perceived by the current and potential stakeholders. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation such as; boards, managers, shareholders and other stakeholders and spells out the rules and procedures and also decision-making assistance on corporate affairs. Corporate governance practices in Bangladesh are gradually being introduced in most companies and organizations (Du, 2006). However, Bangladesh has fallen behind its neighboring countries and global economy in corporate governance (Gillibrand, 2004). Corporate governance structure is mainly considered ambiguous. Specific governance structures or practices will not necessarily fit all companies at all times. Firms with strong corporate governance mechanisms are generally associated with better financial performance, higher firm valuation and higher stock returns. Unfortunately, investors in Bangladesh have a little information about how these corporate values affect the performance of the Multinational Companies (MNCs). This study aims to provide a quantitative contribution to the literature by examining the impact of corporate governance mechanisms on financial performance from the perspective of MNCs. A panel data based Ordinary Least Squared (OLS) regression model was used to measure the quantitative significance of various corporate governance related variables on MNC performance, as identified through a detailed literature review.

scholarly journals PENGARUH MEKANISME CORPORATE GOVERNANCE DAN UKURAN PERUSAHAAN TERHADAP KINERJA KEUANGAN (Survei Pada Perusahaan Manufaktur yang terdaftar di BEI )

2018 ◽  
Vol 2 (2) ◽  
pp. 010-031
Author(s):  
Animah Animah ◽  
Lukman Effendy ◽  
Alamsyah M. Thahir ◽  
Erna Widiastuty
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Firm Size ◽  
Sampling Technique ◽  
Partial Least Square ◽  
Least Square ◽  
Governance Mechanism ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
Corporate Governance Mechanism

The purpose of this research is to examine the effect of corporate governance mechanisms,  firm size of financial performance. The Population of this research is the company manufacturing  in BEI. The sampling technique used is purposive sampling. The analytical tool used is using partial least  square program. The independent variables in this research are corporate governance mechanism,  firm size  while the dependent variable is the performance of the financial. The result of the research shows that firm size  influence to financial performance, while other variables such as corporate governance mechanisms have no effect negative  to financial performance.

scholarly journals The relationship between corporate governance and financial performance of small corporations in Australia

2014 ◽  
Vol 9 (2) ◽  
Author(s):  
Yongqiang Li ◽  
Anona Armstrong ◽  
Andrew Clarke
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Structural Equation ◽  
Small Firms ◽  
Negative Impact ◽  
Governance Mechanisms ◽  
Latent Constructs ◽  
Equation Modelling ◽  
Corporate Governance Mechanisms ◽  
The Relationship

This paper examines a widely explored but yet to be confirmed relationship between two latent constructs - corporate governance and financial performance of small corporations in Australia. Prior studies have either focused on larger organisations or isolated corporate governance mechanisms in small firms. However, few have examined how corporate governance mechanisms, as a bundle, relate to small corporations. This study fills this gap by empirically analysing the aforementioned relationship using Structural Equation Modelling (SEM). Based on 387 responses from small corporations, the results show that corporate governance bundles measured by the extant literature, has a negative impact on the financial performance of small corporations. The result calls for a stakeholder approach to the governance needs of small corporations.

scholarly journals Measuring Corporate Governance Using Analytic Hierarchy Process (AHP): Case of Algerian Companies

2019 ◽  
Vol 3 (1) ◽  
pp. 1-24
Author(s):  
Hamoudi HADJ-SAHRAOUI ◽  
Rima Chiboub
Keyword(s):  
Corporate Governance ◽  
Analytic Hierarchy Process ◽  
Financial Performance ◽  
Empirical Studies ◽  
Analytic Hierarchy ◽  
Private Companies ◽  
Corporate Governance Mechanisms ◽  
Property Type ◽  
Governance Systems ◽  
Hierarchy Process

During the last decades, and according to its effect on financial performance, the measuring of corporate governance systems has been the subject of many empirical studies. In this side and in order to arrange the Algerian companies, the Analytic Hierarchy Process (AHP), which is concerning as a multi-criteria decision-making method, has been used to analyze the data of 16 companies during the period 2010-2013. The findings are as follows: (1) in contrast to the property type which determines the financial performance, the relationships between corporate governance mechanisms and financial performance are weak and sometimes negative (2) according to AHP results, the corporate governance systems of private companies are the best.

The Impact of Strategy And Structure On The Organizational Performance of Restaurant Firms

1988 ◽  
Vol 12 (2) ◽  
pp. 265-276 ◽  
Author(s):  
Eliza Ching-Yick Tse ◽  
Michael D. Olsen
Keyword(s):  
Organizational Structure ◽  
Financial Performance ◽  
Organizational Performance ◽  
Positive Impact ◽  
Strategy Implementation ◽  
Management Literature ◽  
Primary Means ◽  
Restaurant Firms ◽  
And Performance ◽  
The Impact

There is an increased emphasis in the management literature on the use of strategic management as the primary means of adapting organizations to their changing environments. for firms in the maturing hospitality industry to survive and succeed, they will have to depend upon their ability to strategically align themselves with the turbulent environment and select appropriate strategies to create defendable competitive positions. Success in strategy implementation depends partly on a proper match between strategy and organizational structure and this match is expected to have a positive impact on financial performance. This study was conducted to explore the relationships among strategies of restaurant firms, their organizational structure and financial performance. The top management team in 296 American multi-unit restaurant firms were surveyed. Results regarding relationships posited among strategy, structure and performance are presented.

Financial Factors Affecting Price-to-Earnings Ratios in Canada

2021 ◽  
Vol 6 (2) ◽  
pp. 43-61
Author(s):  
Natalia Popa Antalovschi ◽  
Raymond A. K. Cox
Keyword(s):  
Financial Reporting ◽  
Stock Prices ◽  
Stock Exchange ◽  
Fiscal Year ◽  
Unique Contribution ◽  
Policy And Practice ◽  
Factors Affecting ◽  
Financial Factors ◽  
Natural Logarithm ◽  
Forward Price

Purpose: The purpose of this study is to ascertain which financial factors affect the price-to-earnings ratios of Canadian firms. Methodology: A sample of 578 Canadian firms, across 11 industries, listed on the Toronto Stock Exchange during 2011 to 2018 is examined. Stock prices and financial statements accounts data is collected from S & P Capital IQ. We compute 27 financial factors to use as independent variables to regress on the price-to-earnings ratio dependent variables employing the Statistical Package for Social Sciences (SPSS) utilizing the software program’s forced, forward, and backward selection methods. Robustness tests are conducted using alternative dates (after the fiscal year end) to discover which model of financial factors best explains the forward price-to-earnings ratio as well as other statistical methods such as analysis of variance. Results: We find a unique model for each of the 3 models based on the forward price-to-earnings ratio date. The financial factors that explain each of the dates after the end of the fiscal year (1 month, 2 months, and 3 months) are the 4 variables: net profit margin, return on investment, total asset turnover, and the natural logarithm of the total assets. For model 3 (1 month after fiscal year end), in addition to the previous 4 factors, the dividends per share is part of the regression equation. All 3 models have strong statistically significant results at an alpha level of one percent. Further, industry effects are deduced and presented. Unique contribution to theory, policy, and practice: The results are unique to a Canadian sample of firms post- International Financial Reporting Standards (IFRS) adoption. Companies can utilize the empirical findings to manage their financial performance to maximize their price-to-earnings ratio. A product of a firm’s higher price-to-earnings ratio is a lower cost of capital which expands the corporation’s investment opportunities. Investors can apply this research to develop investment strategies hinged on price-to-earnings ratios to augment investment returns.

Understanding Outsourcing of Web-Based Applications in Organizations

2011 ◽  
pp. 171-187
Author(s):  
Teuta Cata
Keyword(s):  
Organizational Structure ◽  
Web Site ◽  
Insurance Industry ◽  
Organizational Structures ◽  
Insurance Companies ◽  
Organizational Size ◽  
Online Activity ◽  
Web Based ◽  
Development Approach ◽  
The Relationship

This article has investigated the insurance industry and provided insights into the relationships of organizational size and age with outsourcing and organizational structure. Also, this study investigated the relationship between Web site age, outsourcing, and organizational structure. The main findings are that firm size and maturity is related to the decision of Web-based development approach and the best organizational structure to support online activity. The insights obtained by a new variable: Web site age suggests that insurance companies are trying to develop their Web-based activities within their existing organizational structures, rather than creating new e-commerce divisions.

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