CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE OF MOBILE SERVICE PROVIDERS IN KENYA: A CASE OF AIRTEL KENYA LTD

2017 ◽  
Vol 2 (6) ◽  
pp. 1
Author(s):  
Adan Billow Mohamed ◽  
Mr. Gerald Atheru
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Multiple Regression ◽  
Ethnic Diversity ◽  
Service Providers ◽  
Gender Diversity ◽  
Target Population ◽  
Middle Level ◽  
Primary Data ◽  
Mobile Service

Purpose:  The purpose of the study was to determine the effect of corporate governance on financial performance of mobile service providers in Kenya in the case of Airtel Kenya.Methodology: The study adopted a descriptive research design where a case study was conducted. The target population comprised of all the 96 employees in the top and middle level management working with Airtel Kenya Ltd within Nairobi. The study used primary data collected using a questionnaire. The study used multiple regression analysis. The statistical software used to run the multiple regression was SPSS.Results: The study findings revealed that board members’ experience, their educational qualifications and board ethnic diversity had a positive and significant effect on the financial performance of the firm. Board size, however was found to have a negative but significant effect on the financial performance of the firm. Board gender diversity though had a positive effect on the financial performance of the firm; this effect was found to be insignificant. Financial leverage was also found to moderate the relationship between corporate governance and financial performance of the firm.Unique contribution to theory, practice and policy: Based on the responses given by the individuals in the two management levels participating in the study, it was recommended that if Airtel Kenya Ltd was to improve their financial performance which had not been impressive, they needed to place key emphasis on the characteristics of their board for efficiency and effectiveness. The management had to ensure that they limited the amount of debts of the firm.

scholarly journals Digital Financial Services and Financial Performance of Savings and Credit Cooperative Societies in Kakamega County, Kenya

2021 ◽  
Vol 3 (1) ◽  
pp. 9-20
Author(s):  
Kizito Simiyu Wanyonyi ◽  
Dominic Ngaba
Keyword(s):  
Financial Performance ◽  
Diffusion Of Innovation ◽  
Financial Services ◽  
Service Providers ◽  
Banking System ◽  
Target Population ◽  
Internet Banking ◽  
Primary Data ◽  
Mobile Banking ◽  
Services Delivery

Savings and Credit Co-operative Societies (Saccos) in Kenya have realised a tremendous growth in the subsector and are investing huge amount of their scarce financial resources in digital  technology to enhance services delivery and offer a wide variety of products and services range, increased membership mobilisation and size, ensure better structure and effective financial performance. Digital financial Services as used in the Saccos industry is as a result of Information Communication Technology revolution commonly referred to as digital  commerce. Many Saccos are steadily changing from manual banking system of operations to providing digital Financial (e-banking) services that include internet banking, M-banking and Automated Teller machine support. The adoption of digital  financial Services by the Saccos is a strategic attempt to deal with increased cut throat competition from traditional banking institutions and non-banking financial institutions, to cut costs and add value to their services in order to optimise benefits to the shareholders. Despite the fact that Saccos have rapidly adopted digital financial services to provide services, and that they drive a huge section of the financial sector savings of the economy, they have experienced various challenges such as uncertainty and risk due to digital  financial services. The study sought to establish the influence of digital financial services on the financial performance of SACCOs in Kakamega County, Kenya. The specific objectives was to determine the effect of the mobile banking, internet banking, use of credit cards and digital  funds transfer on the financial performance of SACCOs in Kakamega County, Kenya. The research was guided by three theories of innovation and technology: Diffusion of Innovation Theory, The Theory of Task-Technology Fit Theory and the Technological context, Organisational context and Environmental context Theory.The study used a descriptive research design. The population of study were staff at the three SACCOs operating in Kakamega County. This consisted of 162 respondents who are the staff of the SACCOs. A sample of 49 respondents was taken which forms 30% of the target population which shall be evenly spread across the three SACCOs. The primary data was collected by use of self-administered semi-structured questionnaire.Collected data was analysed through descriptive and inferential statistics by the use of SPSS. Findings were presented by use of tables, frequencies, percentages, means and standard deviation.The study found that the financial performance of the SACCOs was significantly influenced by the digital financial services instituted by the SACCO managements. They demonstrated to have reliable mobile banking system where most of their customers had enrolled on the mobile banking platform and most of customer queries and updates were sorted via the mobile platform.Given the limitations and findings of this study, the researcher recommends that since there exists a positive relationship between digital financial services and bank performance and that e-banking has brought services closer to bank customer’s hence improving banking industry performance, SACCOs must also enhance the dynamics of the sector and embrace digital banking fully and extensively. Mobile banking faces various challenges among them being, system delays by the mobile money transfer service providers, slow processing of transactions, high transactions costs, limit on the amount of money that can be withdrawn in a day and fraud.

Service Quality Dimensions and Customers' Satisfactions in Mobile Communications

2016 ◽  
Vol 4 (1) ◽  
pp. 38-45
Author(s):  
S. Sakthivel Rani ◽  
S. Kannan
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Mobile Communications ◽  
Global Economy ◽  
Service Providers ◽  
Relative Effect ◽  
Primary Data ◽  
Mobile Service ◽  
The World ◽  
Switching Barriers

Objective - The world is moving towards continuous and ubiquitous availability of information. Entry of private operators in 1990's, competition has caused prices to drop and calls across India are one of the cheapest in the world. Technological advances combined with forces of globalization resulted in the transformation of the economy, industries, markets and customers resulting in a connected knowledge economy, borderless global economy, globalizing, covering and consolidating industries, fragmenting and frictionless markets and active, connected, informed and demanding customers. The objective of this research is to ascertain the constructs like customer satisfaction towards the mobile phone service providers, switching barrier and the customer loyalty factors. Methodology/Technique - Respondents in the study are the customers who use mobile phones. Primary data were collected with the help of the specially designed questionnaire, which was administered to the mobile users. The final questionnaire was pre-tested on 40 respondents and the coefficient values are all above .8 thus meeting Nunnaly's recommendation of greater than 0.7 as the acceptable reliability level. The overall alpha value was 0.8 and the instrument consists of customer satisfaction regarding the mobile service providers, which includes factors like price (5 items, 0.816), network coverage (4 items, 0.795), customer service (5 items, 0.852) and usage (8 items, 0.884). Switching barriers factors consists of 28 items like credibility factors (8 items, 0.863), congruency factors (7 items, 0.816), switching cast (8 items, 0.871), and value (5 items, 0.900). Final part of the instrument includes 17 customer loyalty factors like trust (7 items, 0.858), commitment (4 items, 0.848), word of mouth (3 items, 0.779) and cooperation (3 items, 0.691). Findings - Gender, location of the customers and service providers has a significant association with level of customer satisfaction. Gender and occupation have a significant association with level of customer switching barriers. Hierarchical regression analysis was used to analyze the main effect and the adjustment effect of those switching barrier factors and the relative effect. The contribution is that this study reviews theoretically and verifies empirically the relationship and mechanism between the customer retention and the switching barrier. Type of Paper - Empirical Keywords: Customer satisfaction factors; switching barrier factors; Customer loyalty factors.

Women representation on boards: a South African perspective

2016 ◽  
Vol 24 (2) ◽  
pp. 211-225 ◽  
Author(s):  
Gizelle Willows ◽  
Megan van der Linde
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Critical Mass ◽  
Gender Diversity ◽  
Current Status ◽  
Company Performance ◽  
Content Type ◽  
The Board Of Directors

Purpose By looking at both theoretical and empirical findings, this study aims to investigate whether gender diversity results in improved corporate governance and financial performance for companies. Design/methodology/approach An analysis of the board composition of the Johannesburg Securities Exchange Top 40 companies as at 30 June 2013 and a comparison of the financial performance of the company were conducted. Findings Female directors were found to make up, on average, 18.78 per cent of the board of directors, with the majority of these women being in non-executive positions. Women representation appears to influence company performance positively when using accounting-based measures of performance (such as return on assets and return on equity), but negatively when using market-based measures (such as Tobin’s Q). The critical mass concept is also assessed and is found to have a positive effect. Originality/value These findings are of relevance to the boards of directors adhering to corporate governance requirements by challenging the role of women on the board of directors, as well as that of investors and those in practice, to understand the current status of women representation.

scholarly journals Effect of gender diversity on the financial performance of insurance firms in Kenya

2019 ◽  
Vol 8 (5) ◽  
pp. 274-285
Author(s):  
Hassan Bashir Ibrahim ◽  
Caren Ouma ◽  
Jeremiah N. Koshal
Keyword(s):  
Financial Performance ◽  
Chief Executive Officers ◽  
Audit Committee ◽  
Gender Diversity ◽  
Secondary Data ◽  
Chief Executive ◽  
Primary Data ◽  
Financial Reports ◽  
Insurance Firms ◽  
Executive Officers

The aim of this study was to examine the effect of gender diversity on the financial performance of insurance firms in Kenya. The study analyzed data from the 55 insurance firms licensed by the Insurance Regularity Authority (IRA) in Kenya. Gender diversity was operationalized by the number of female directors serving on the boards of insurance firms operating in Kenya. Primary data was collected from a sample of 412 board directors, Chief Executive Officers (CEOs), Chief Finance Officers (CFOs), Audit Committee members (AUDIND) and Internal Auditorsusing a questionnaire instrument while secondary data was retrieved from audited financial reports of the year 2017. Data were analyzed using descriptive and inferential statistics. Firm performance was measured by the two accounting-based measures Return On Assets (ROA) and Return On Equity (ROE). The findings from the regression analysis indicate that gender diversity significantly and positively affects the financial performance of insurance firms in Kenya.

scholarly journals The effect of corporate governance on financial performance of rural banks in Ghana

2021 ◽  
Vol 2 (4) ◽  
pp. 305-319
Author(s):  
Alhassan Musah ◽  
Mavis Yaa Adutwumwaa
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Gender Diversity ◽  
Secondary Data ◽  
Positive Association ◽  
Board Independence ◽  
Governance Structures ◽  
Board Size ◽  
Ceo Duality ◽  
Board Gender Diversity

Purpose: The study examined the influence of various corporate governance structures such as board size, board independence, board gender diversity and CEO duality on the financial performance of rural banks in Ghana. Research methodology: The study collected secondary data from the annual report of 30 rural banks for a 10-year period spanning 2010 to 2019. The data was coded into excel and exported into STATA where descriptive statistics, correlation analysis and regression analysis were adopted to answer the research questions. Results: The result shows that there was a positive but statistically insignificant association between CEO duality and ROA and ROE. The study further reveals a positive association between board size and ROA and ROE even though that of ROA was statistically insignificant. Also, board independence was found to be a significant determinant of rural bank financial performance In addition to the above, the study reported a negative association between gender diversity on the boards of the rural bank and ROA and ROE and both associations were statistically significant. Limitations: As a result of the lack of publicly available data on rural banks in Ghana, the study relied on only 30 out of the over 100 rural banks currently operating across the country. Contribution: The result of the study will help the Bank of Ghana and the ARB Apex Bank in their formulation of an appropriate corporate governance framework for rural banks in Ghana and enlighten managers of rural banks on corporate governance structures that enhance their financial performance in Ghana. Keywords: Corporate governance, Rural banks, Return on Assets, Return on Equity, Ghana

scholarly journals PENGARUH PENERAPAN PRINSIP-PRINSIP GOOD CORPORATE GOVERNANCE DAN BUDAYA TRI HITA KARANA TERHADAP KINERJA MANAJERIAL LEMBAGA PERKREDITAN DESA (LPD) PAKRAMAN PADANGSAMBIAN

2019 ◽  
Vol 4 (1) ◽  
pp. 24
Author(s):  
Ni Made Mery Yandani ◽  
I Gusti Ngurah Putra Suryanata
Keyword(s):  
Corporate Governance ◽  
Linear Regression ◽  
Financial Performance ◽  
Sampling Technique ◽  
Positive Influence ◽  
Primary Data ◽  
Managerial Performance ◽  
Good Corporate Governance ◽  
Analysis Technique ◽  
Regression Test

The Influence of Implementation of Good Corporate Governance Principles and Tri Hita Karana Value on Managerial Performance of Village Micro Credit (LPD) at Padangsambian. The current study aims to investigate the influence of transparency, accountability, responsibility, independence, fairness, and THK value on LPD financial performance. Saturated sampling technique were used in the current study, and number of sample used were 30. The data were collected using primary data through the method of survey. The current study used classic assumption test and multiple linear regression test as an analysis technique. Generally, it could be stated that if Good Corporate Governance (X1) and The Value of Tri Hita Karana (X2) increase by one unit (one score), it could has a positive influence towards the managerial performance (Y) of LPD Pakraman Padangsambian. This shows that if Good Corporate Governance (X1) and The value of Tri Hita Karana (X2) are increased, then the performance of individual managerial (Y) will increase. Otherwise, if Good Corporate Governance (X1) and the value of Tri Hita Karana (X2) decrease, there will be a decrease in managerial performance (Y). Keywords: Good corporate governance, Tri Hita Karana value, managerial performance

scholarly journals Corporate governance and financial performance of listed companies: A case of an emerging market

2021 ◽  
Vol 5 (3) ◽  
pp. 8-17
Author(s):  
Emmanuel Selase Asamoah ◽  
Albert Puni
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Performance Indicator ◽  
Stock Exchange ◽  
Emerging Market ◽  
Target Population ◽  
Governance Structure ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
A Performance

Corporate financial performance (CFP) is a key benefit that comes with the adoption and implementation of a good corporate governance structure in organizations. The objective of this paper is to analyze the effect of the six (6) broad corporate governance structures (board composition, board committees, separation of CEO/chairman, size of board, number of board meetings held, and shareholder concentration) on CFP measured by ROA, ROE, EPS, and Tobin’s Q among Ghanaian companies. The target population for the study was the companies that were listed on the Ghana Stock Exchange (GSE) for the period 2015–2020 and purposive sampling methods were deployed in the sample selection. The study found that using ROA as a performance indicator, corporate governance variables affected CFP by 18.95% whilst it influenced ROE by 29.71%. Additionally, corporate governance mechanisms impacted EPS by 52.53% when it was used as a performance indicator and 18.01% when Tobin’s Q was the performance index. The paper concludes that companies that implement the corporate governance guidelines on best practices stand a better chance of enhancing CFP especially with performance targets that integrate shareholder value maximization.

scholarly journals Effect of Budgeting on Financial Perfomance of Youth Groups Funded by Youth Entreprise Fund in Kapsaret Sub-County, Kenya

2020 ◽  
Vol 9 (3) ◽  
pp. 20-27
Author(s):  
Kevin Otieno Owembi ◽  
Keyword(s):  
Financial Performance ◽  
Research Design ◽  
Sampling Technique ◽  
Target Population ◽  
Test Method ◽  
Primary Data ◽  
P Value ◽  
Chi Square ◽  
Youth Groups ◽  
Ex Post

The study examined the effect of budgeting on financial performance of the Youth Groups at Kapsaret Sub-County. The study sought to answer the following questions; extent of budgeting by the youth groups at Kapsaret sub-county, factors affecting budgeting implementation and financial performance by the Youth Groups at Kapsaret Sub-county and budgeting effects on financial performance by the youth groups at Kapsaret Sub-county. The research design adopted for this study was Ex post-facto research design, the target population was the 82 youth groups being funded by the various financial institutions and YEDF in Kapsaret Sub-County Stratified sampling technique targeting youth groups managers and treasurers of the youth groups was used, 5 stratums were drawn from Kapsaret sub-county and data collected through simple random sampling technique. questionnaires administered to the target population was the source of primary data, Validity of questionnaires was tested using a pilot study on 6 Youth Groups out of the sampled groups and reliability was tested using the test-re-test method, descriptive statistic was used to analyze quantitative data presented through frequency tables, percentages, mean scores and standard deviation, chi-square was used to test the hypothesis. The study finding on the effect of standardized budgeting on financial performance using chi-square with the computed X2 value of 0.610 and the P-Value of 0.435,the study established out that there was no evidence of a relationship between standardized budgeting and financial performance yet on the effect of budgeting on financial performance computed X2 value was16.970 and the P-Value was 0.000, the study established out that there was evidence of a relationship between budgeting and financial performance. The study recommends that there should be effective budget implementation within the various youth groups particularly those funded by the YEDF, more funding should be provided to the youth groups funded by YEDF, more training and seminars to be offered to the youth groups on preparation and implementation of budgets and there should be constant monitoring and evaluation of the youth groups budgets and budgeting system by fund managers over time within the youth groups. Keywords: Budgeting, Financial Perfomance, Youth Entreprise.

scholarly journals ESG disclosure and firm performance before and after IR

2020 ◽  
Vol 28 (3) ◽  
pp. 429-444 ◽  
Author(s):  
Khaldoon Albitar ◽  
Khaled Hussainey ◽  
Nasir Kolade ◽  
Ali Meftah Gerged
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Gender Diversity ◽  
Ownership Concentration ◽  
Content Type ◽  
Moderation Effect ◽  
Corporate Governance Mechanisms ◽  
Before And After ◽  
The Uk ◽  
The Relationship

Purpose This paper aims to investigate the effect of environmental, social and governance disclosure (ESGD) on firm performance (FP) before and after the introduction of integrated reporting (IR) further to exploring a potential moderation effect of corporate governance mechanisms on this relationship. Design/methodology/approach Ordinary least squares and firm-fixed effects models were estimated based on data related to FTSE 350 between 2009 and 2018. The data has been mainly collected from Bloomberg and Capital IQ. This analysis was supplemented with applying a two-stage least squares (2 SLS) model to address any concerns regarding the expected occurrence of endogeneity problems. Findings The results show a positive and significant relationship between ESGD score and FP before and after 2013, among a sample of FTSE 350. Furthermore, the study is suggestive of a moderation effect of corporate governance mechanisms (i.e. ownership concentration, gender diversity and board size) on the ESGD-FP nexus. Additionally, this paper finds that firms voluntarily associated with IR have a tendency to achieve better firm financial performance. Practical implications The findings of the present study have several policy and practitioner implications. For example, managers may engage in ESGD to enhance their firms’ financial performance by the voluntary involvement in IR, which believed to help investors to rationalise their investment decisions. Likewise, the results reiterate the crucial need to integrate more social, environmental and economic regulations to promote sustainability in the UK. The paper also offers a systematic picture for policymakers in the UK as well as future researchers. Social implications The findings of this paper indicate that IR plays a significant role in the relationship between ESGD and FP, where IR firms seemed to be achieving better FP as compared with their non-IR counterparts. This implies that stakeholders may have played a magnificent effort to encourage firms’ voluntary engagement in IR in the UK. Originality/value To the best of the authors’ knowledge, this is the first study to explore the potential moderating effect of ownership concentration, gender diversity and board size on the relationship between ESGD and FP and to examine whether firms’ voluntary involvement in IR can lead to better FP after the introduction of IR in 2013 in the UK.

Effect of Application of Principles of Good Corporate Governance Corporate Financial Performance Against At PT.Duta Cendana Mobilindo Cianjur

2020 ◽  
Author(s):  
endang naryono
Keyword(s):  
Corporate Governance ◽  
Linear Regression ◽  
Financial Performance ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Positive Influence ◽  
Primary Data ◽  
Corporate Financial Performance ◽  
Good Corporate Governance ◽  
Ex Post

This research to determine the application of GCG PT.Duta Cendana Mobilindo , development of the company 's financial performance on a PT.Duta Cendana Mobilindo, and to determine the effect of GCG Implementation of the company's financial performance on a PT.Duta Cendana Mobilindo.The method used is the method of ex - post facto . This study uses primary data and secondary data obtained from the financial and non-financial statements of the PT.Duta Cendana Mobilindo . To test the hypothesis used linear regression and correlation Based on the results of the study showed that there is positive between GCG Implementation on the PT.Duta Cendana Mobilindo. The level of closeness of relationship ( correlation ) between the two variables is strong enough , ie r = 0.675 with a correlation coefficient of r > 0 means if GCG Implementation increasing the company's financial performance will increase , and vice versa . The degree of influence is achieved by 45.56 % , and the remaining 54.44 % is influenced by other factors . Meanwhile, through hypothesis testing using t-test , obtained t value = 3.313 and table value of t = 1.987 . Based on the t value , then the value of t is greater than t table located in the rejection of H0 . Results of simple linear regression analysis 2.395 + 0.366 that each increase of 1 ( one point ) Application of the principle of good corporate governance corporate financial performance will increase by 0.366 % . So it can be concluded that the application of GCG has a strong positive influence on the financial performance of the company PT.Duta Cendana Mobilindo.

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