scholarly journals THE EFFECT OF PORTFOLIO SIZE ON THE FINANCIAL PERFORMANCE OF PORTFOLIOS OF INVESTMENT FIRMS IN KENYA

2017 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Peter Kimani Mbogo ◽  
Dr. Josiah Aduda ◽  
Mr. Mirie Mwangi
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Sample Size ◽  
Money Market ◽  
Optimal Portfolio ◽  
Survey Study ◽  
Unique Contribution ◽  
Money Market Funds ◽  
Portfolio Size ◽  
Descriptive Survey

Purpose: The purpose of this study was to determine the effect of portfolio size on the financial performance of portfolios of investment firms in Kenya.Methodology: The research design was descriptive survey study in nature since it focused on all investment firms in Kenya. The population of the study was all the investment firms in Kenya. This implied that the total population of this study is 90 firms as given by the Kenya Association of Investment Groups (KAIG). For representativeness purposes, the current study took a sample size of 50% of the population. This was 45 firms. This sample size was justified since this study could not anticipate how good the response rate would be.  The 45 firms must have been in existence for 5 years (2007 to 2011).Results: The finding reveal that investments firms in Kenya had put the biggest allocation of funds in stocks, followed by real estate portfolio and the least holding was in bond and money market funds.  The findings also reveal that that the stocks portfolio generated the highest returns followed by bond and money market returns while real estate portfolio generated the least returns.  The first objective of the study was to establish the optimal portfolio size for investment firms in Kenya. The findings in this study indicated that an optimal portfolio should hold between 16 and 20 stocks. Unique contribution to theory, practice and policy: It was recommended that investment managers should consider increasing the number of stocks from the current average of 13 stocks to between 16 to 20 stocks.  Such a portfolio size would be optimal since approximately 91% of risk would have been diversified.

scholarly journals THE EFFECT OF PORTFOLIO SIZE ON THE FINANCIAL PERFORMANCE OF PORTFOLIOS OF INVESTMENT FIRMS IN KENYA

2016 ◽  
Vol 1 (2) ◽  
pp. 77
Author(s):  
MBOGO PETER KIMANI ◽  
DR. JOSIAH ADUDA
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Secondary Data ◽  
Money Market ◽  
Optimal Portfolio ◽  
Survey Study ◽  
Unique Contribution ◽  
Money Market Funds ◽  
Portfolio Size ◽  
Descriptive Survey

Purpose The purpose of this study was to determine the effect of portfolio size on the financial performance of portfolios of investment firms in Kenya. Methodology: The research design adopted a descriptive survey study. This implied that the total population of this study is 90 firms as given by the Kenya Association of Investment Groups (KAIG). For representativeness purposes, the current study took a sample size of 50% of the population. This was 45 firms.  The study used secondary data from the financial statements of the investments firms. The selected period was 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 the relationship between the portfolio size and the performance of investment firms.Results: The finding reveal that investments firms in Kenya had put the biggest allocation of funds in stocks, followed by real estate portfolio and the least holding was in bond and money market funds.  The findings also reveal that that the stocks portfolio generated the highest returns followed by bond and money market returns while real estate portfolio generated the least returns. Unique contribution to theory, practice and policy: It was recommended that investment managers should consider increasing the number of stocks from the current average of 13 stocks to between 16 to 20 stocks.  Such a portfolio size would be optimal since approximately 91% of risk would have been diversified. This will solve the question in mind of investment managers which has been as to how many individual stocks or investments are needed to compose an optimal portfolio. An optimal portfolio is preferred over a maximized portfolio due to the risk return tradeoff.

scholarly journals EFFECT OF MACRO-ECONOMIC FACTORS ON FINANCIAL PERFORMANCE IN KENYA OF REGISTERED REAL ESTATE INVESTMENTS TRUSTS

2021 ◽  
Vol 6 (1) ◽  
pp. 72-92
Author(s):  
Sophia Wanjiku ◽  
Joshua Bosire ◽  
Joshua Matanda
Keyword(s):  
Real Estate ◽  
Regression Model ◽  
Financial Performance ◽  
Series Data ◽  
Population Census ◽  
Unique Contribution ◽  
Macroeconomic Variables ◽  
Independent Variables ◽  
Real Estate Investments ◽  
The Government

Purpose: The purpose of the study was to determine the macroeconomic effect on Registered Real Estate Investments Trusts (REITs) financial performance in Kenya. Materials and Methods: Causal research design was used to describe the REITs financial performance. This study used the population comprising of thirteen REITs firms in Kenya. The entire population (census) was used for the study. This study utilized secondary sources of data to get the information required to satisfy the research objectives. Time series data on REITs financial performance was computed for a four-year period as at 1st January 2016 to 31stDecember 2019, thus making use of 4 data points. The process of data analysis entailed preparation of the collected data through cleaning, editing and coding so that statistics could be keyed in the SPSS (statistical package for social sciences) package. The data was presented through tables and figures Results:  The regression model results without the moderating variable showed that R = 0.792, R² = 0.627 indicating that 62.7% of the variance in the REITs financial performance can be accounted for by the independent variables (macroeconomic variables). On the other hand, the regression model results with the moderating variable showed that R = 0.838, R² = 0.703 indicating that 70.3% of the variance in the REITs financial performance can be accounted for by the independent variables (macroeconomic variables) and the moderating variable considered in this study.  Unique contribution to theory, practice and policy: The study recommended that the government and REITs stakeholders should focus on policies and strategies that encourage favorable balance of payment in Kenya. REITs develop and design their products to suit consumers tastes and preferences to ensure their increased as consumption increases. Lastly, the government should expand the money supply to lower the inflation rates through tight fiscal and economic policies.

scholarly journals LIQUIDITY MANAGEMENT AND FINANCIAL PERFORMANCE OF TEACHERS DEPOSIT TAKING SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN KENYA

2020 ◽  
Vol 5 (2) ◽  
pp. 1
Author(s):  
Charles Kai Mwangudza ◽  
Ambrose Jagongo ◽  
Fredrick W.S. Ndede
Keyword(s):  
Financial Performance ◽  
Management Practices ◽  
Target Population ◽  
Unique Contribution ◽  
Moderator Variable ◽  
Liquidity Management ◽  
Study Objective ◽  
External Borrowing ◽  
Loan Losses ◽  
Descriptive Survey

Purpose: The study objective was to establish the effect of liquidity management on the financial performance of Teachers DT Saccos in Kenya and to evaluate the moderating effect of the size on liquidity management and financial performance of Teachers DT Saccos in Kenya. Methodology: This study adopted a post-positivist research paradigm to interpret the effect of liquidity management on the financial performance of deposit-taking Saccos in Kenya. The study adopted a descriptive, survey research design. The target population was 18 Saccos classified under teachers' based DT SACCOs according to SASRA records of December 2017 (SASRA, 2018). Census Methodology was used. The study used a data capture form that has been designed by the researcher to collect the data on the independent variables of liquidity management, moderator variable size and dependent variable which was DT Saccos financial Performance. Data were analysed using a combination of descriptive and inferential statistics with the statistical package STATA. Analysed data was presented using graphs and tables. Findings: The study established that there was a significant effect of capacity and purchased funds on the financial performance of Teachers DT Saccos. The study also established that cash position, total deposit, and core deposit had an insignificant effect on the financial performance of Teachers DT Saccos and that size of the Sacco affects the relationship between liquidity management and financial performance of Teachers DT Saccos. Unique contribution to theory, practice and policy:  The study recommended the development of a more robust liquidity monitoring policy as well as enhancement of the oversight on liquidity management practices. The study also recommended that Teachers DT Saccos should reduce the provisions of loan losses as well as their reliance on external borrowing. Further, the study recommended future studies using other factors influencing liquidity in the Teachers DT Saccos. Lastly, the study recommends a comparative study using other financial intermediaries with similar deposit and asset features such as Deposit Taking Micro Finance Institutions.

scholarly journals INFLUENCE OF CORPORATE STRATEGIES ON FINANCIAL PERFORMANCE OF OIL MARKETING COMPANIES IN KENYA

2018 ◽  
Vol 3 (1) ◽  
pp. 45
Author(s):  
Anne Ingabo ◽  
Dr. Allan Kihara
Keyword(s):  
Financial Performance ◽  
Survey Design ◽  
Target Population ◽  
Primary Data ◽  
Unique Contribution ◽  
Diversification Strategy ◽  
Oil Companies ◽  
Corporate Strategies ◽  
Positioning Strategy ◽  
Descriptive Survey

Purpose: Strategy is the direction and scope of an organization over the long term, which achieves competitive advantage in a changing environment. Strategic marketing is an organization’s process of defining its strategy and making decisions on allocating its resources to pursue this strategy, including its capital and people. The main purpose of the study was to stablish the influence of corporate strategies on financial performance of the oil marketing companies in Kenya Methodology: This study adopted descriptive survey design. The target population for this study was23 oil companies in the oil industry in Kenya. The study used primary data which was collected through self-administered questionnaires. The researcher utilized mixed method which included qualitative and quantitative techniques in analyzing the data. Results: The findings showed that all the strategies under study lead to significantly affects financial performance Oil Marketing Companies in Kenya. The greatest variation in performance is led by diversification strategy diversification at 0.398 increase, followed by positioning strategy will lead to 0.376, Mergers and acquisitions strategy, at 0.355 and finally Outsourcing strategy at 0.332. This means that if companies employ these strategies especially diversification and positioning strategies, then their investment opportunities will increase thereby increasing their revenue and financial performance Unique contribution to theory, practice and policy: In order for Oil marketing Companies to enhance their financial performance through outsourcing strategy, they need to take outsourcing idea a step further to collaborate with competitors so as to find shared solutions. The Oil marketing companies in Kenya also need to train their personnel so as to appreciate the concept of outsourcing strategy, and the best practices and systems that will enhance their financial performance.

DETERMINANTS OF FINANCIAL PERFORMANCE OF COMMERCIAL BANKS LISTED AT NSE IN KENYA

2020 ◽  
Vol 5 (2) ◽  
pp. 66
Author(s):  
Kenneth Njihia Ndungu ◽  
Joshua Bosire
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Interest Rates ◽  
Commercial Banks ◽  
Secondary Data ◽  
Unique Contribution ◽  
Strong Positive Correlation ◽  
Real Estate Finance ◽  
Funds Allocation ◽  
Real Estate Financing

Purpose: The purpose of this study was to establish the determinants of financial performance of NSE listed commercial banks in Kenya. Methodology: A descriptive study design attributed to a census approach aiming at the eleven listed commercial banks in Kenya was applied. The research relied on secondary data obtained from the audited financial statements of the said banks to create the correlation between the research variables. The information on the financial effecting of the listed banks was collected using a data collection matrix. The data was analyzed by the assistance of SPSS and the outcome presented in tables using statistical aspects, which include means and standard deviations. Results: The study established that government securities (r = 0.680) had a positive and strong correlation with financial performance. Similarly, Real estate (r = 0.738), Loans (r = 0.922) and, stocks (r=.469) had a positive and weak correlation with financial performance. The findings of study show loans (p=0.000) was most significant, followed by funds allocated to Government securities at p=0.149 then by funds allocated to stocks (p=.850) and least significant was real estate financing at p=0.972 at 95% confidence level.  The findings show that there was a strong positive correlation (r=0.926) between Funds allocation and financial performance of commercial banks, according to the findings, 85.7% of financial performance of commercial banks could be attributed to the funds allocation to various assets. Adding another variable say, x5 will lower the strength of the model from 85.7 % to 84.6 %.  Unique contribution to theory, practice and policy: The study recommends that listed commercial banks should diversify their real estate finance schemes to make it reachable to more customers since real estate had a significant effect of their financial performance. A study should be conducted on other variables such as inflation, exchange rates and interest rates fluctuations. A study should also be conducted to investigate the low yield of investment in loans in contrast to investment in government securities

THE RELATIONSHIP BETWEEN LEVERAGE RISK AND PERFORMANCE OF SELECTED REAL ESTATE INVESTMENTS IN MERU COUNTY- KENYA

2021 ◽  
Vol 6 (2) ◽  
pp. 36-42
Author(s):  
Kenneth Mburugu ◽  
Dr. Nancy Rintari ◽  
Fredrick Mutea
Keyword(s):  
Real Estate ◽  
Central Bank ◽  
Sample Size ◽  
Target Population ◽  
Added Value ◽  
Unique Contribution ◽  
Real Estate Investment ◽  
Real Estate Investments ◽  
And Performance ◽  
Sampling Procedures

Purpose:  The purpose of this study was to investigate the Influence of leverage risk on performance of selected real estates in Meru County Kenya.  Methodology: This study employed a descriptive research design. The target population comprised of 390 real estate owners and the sample size was 197 respondents. Stratified random sampling and purposive sampling procedures were used to select the sample size from the target population. Data was analyzed by use of SPSS version 23. Descriptive statistics and inferential statistics such as Regression, and Analysis of variance (ANOVA) were used to present the results in tables and figures. Results: This study revealed statistically significant relationships between leverage risk and performance of real estate investments.  This study established that Leverage risk had a statistically significant influence on real estate investment performance (r=.686, p<0.01), (f=12.29, p<0.01). However, Real estate investments was not affected by market risk since it had the least influence on its performance. Unique contribution to theory, policy and practice: The study added value to Investors on necessity to evaluate leverage risk, as well as maintain a well-balanced capital structure when making real estate investment decisions. There is dire need for central bank of Kenya to amend lending rates specifically on mortgages. The study informed policy decision to the ministry of finance & central bank of Kenya on implementing fiscal and monetary policies that create an enabling environment. A further study on determinants of leverage in real estate investments need to be done.

ANALISIS KINERJA KEUANGAN PERUSAHAAN PROPERTI YANG TERDAFTAR DI BEI SEBELUM DAN SESUDAH KEBIJAKAN LOAN TO VALUE

2019 ◽  
Vol 4 (1) ◽  
pp. 79-90
Author(s):  
Ghaniy Ridha Prima ◽  
Hermanto Siregar ◽  
Ferry Syarifuddin
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Stock Exchange ◽  
Sample Selection ◽  
Test Analysis ◽  
Asset Return ◽  
Return On Equity ◽  
Analysis Technique ◽  
Significant Difference ◽  
Before And After

The purpose of this study is to provide empirical evidence of the effects of the Loan to Value (LTV) policy on the financial performance of property and real estate companies listed on the Indonesia Stock Exchange (IDX). The sample selection uses a purposive sampling method of 42 property and real estate companies that meet the criteria. The research period is divided into 2 namely before the Loan to Value policy (2013-2014) and after the Loan to Value policy (2016-2017) with the Paired Sample t Test analysis technique. The test results show if the current ratio, Return on Asset, Return on Equity and Debt to Asset have significant differences between before and after the LTV policy is applied. While the fast ratio, cash ratio, net profit margin and Debt to Equity did not show a significant difference. Keywords: Financial Performance, Loan to Value, Property and Real Estate, Profitability Ratio, Liquidity Ratio, Solvability Ratio.

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