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CORPORATE SUSTAINABILITY AND MARKET SHARE PRICE AMONG LISTED COMPANIES IN THE NAIROBI SECURITIES EXCHANGE

Kariuki Florence Waitherero - School of Business and Economics, Murang’a University of Science and Technology, Kenya

Mwangi Grace Wangari - School of Business and Economics, Murang’a University of Science and Technology, Kenya


ABSTRACT

The study sought to examine the influence of credit risk on the value of the firm among SACCOs in Kenya. Positivistic epistemological position was adopted in this study. The study adopted descriptive and causal research designs. The targeted population was 164 SACCOs licensed by Sacco Societies Regulatory Authority. A sample size of 115 respondents was selected using stratified random sampling technique. The study utilized secondary data obtained from organization’s published financial statements. Data was analysed using descriptive statistics while inferential data analysis was conducted using Pearson correlation coefficient and panel data regression model. The study results showed that value of the firm was negatively correlated with credit risk. The results further revealed that credit risk had an insignificant negative effect on value of the firm as shown by the coefficient of -0.06402 and a P-value of 0.284. Since, credit risk had a negative effect on value of SACCOs, the study recommended that the management should control their credit risk by reducing non-performing loans. However, since the effect was not significant, the study recommended that the management should economically justify credit management efforts. The results of the study would assist SACCO management, ministry of Industry, Trade and Co-operatives and agencies such as Sacco Societies Regulatory Authority, investors as well as researchers and scholars.


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CORPORATE SUSTAINABILITY AND MARKET SHARE PRICE AMONG LISTED COMPANIES IN THE NAIROBI SECURITIES EXCHANGE

Benjamin K. Nyamai - KCA University, Kenya

Fred Sporta (PhD) - KCA University, Kenya


ABSTRACT

Due to ever diminishing global resource base and the increasing global business competition, the perceived importance of corporate sustainability has been recognised by investors, governmental and non-governmental authorities, the academia and the business practitioners in greater proportion. The investors particularly are concerned with the effect of corporate sustainability on share pricing. The purpose of this research was to establish the impact of corporate sustainability on share pricing at the Nairobi Securities Exchange. The study was guided by these objectives; to determine whether value based performance of an organization influence share prices for the companies listed at the Nairobi Securities Exchange, to establish the influence of corporate social responsibility on prices of shares among listed companies in the Nairobi Securities Exchange, to find out the role of corporate citizenship on prices of shares among listed companies in the Nairobi Securities Exchange and to analyse how environmental stewardship influences the prices of shares among listed companies in the Nairobi Securities Exchange. The study used resource-based theory, stakeholder theory, ecological modernization theory as well as the agency theory. It adopted the descriptive research design with stratified sampling method. Secondary data as well as quantitative data was used to determine the relationship between the indicated variables. Data was analysed using STATA version 12 and data was presented in tables and graphs. The study established that environmental stewardship and value based performance have significant effect on share prices. The study concludes that corporate sustainability has significant effect on share prices. The study recommends that the management of all listed firms in Kenya should consider investing in environmental conservation programs so as to enhance on their share prices. Listed firms need to put in place or improve on their value based performance practices for improvement in share prices.


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DEEPENING FINANCIAL INCLUSION AND STABILITY OF COMMERCIAL BANKS IN KENYA: SYNERGIES AND TRADE-OFFS

Salome Musau - Department Of Accounting and Finance, School of Business, Kenyatta University, Kenya


ABSTRACT

There are important trade-offs and synergies between financial inclusion and stability. Poorly implemented financial inclusion policies can impair stability, and also, there may be important synergies brought by broad use of financial services which help financial institutions diversify risk and hence aid stability. Financial stability can enhance financial inclusion through trust build in stable financial systems and hence increase the use of financial services. Excessive emphasis on financial stability can prolong involuntary financial exclusion especially in times of regulatory tightening in an attempt to boost profits and cut off risky segments. It is therefore important for financial institutions to understand the interlinkages in advancing financial inclusion and stability. This study analyzed the effect of financial inclusion on commercial banks stability with a view of establishing the significant relationship between them. The specific objectives were to analyze the effect of Branch networks, ATMs, Agents and Mobile banking on the stability of commercial banks in Kenya. The research design was explanatory non – experimental. The target population was all the 42 commercial banks in Kenya and the study used secondary data. Descriptive statistics were used to establish the trend of financial inclusion and stability of commercial banks while inferential statistics were used for testing the hypotheses. The results revealed that financial inclusion had a statistically significant effect on the stability of commercial banks in Kenya during the study period between 2007-2015. Increase in Branches, ATMs, Agents and Mobile banking were found to support stability (synergy) due to increased deposit mobilization and access to credit. Overall, the results point to the role of financial inclusion and bank stability in Kenya. Moreover, the state of financial inclusion is a major factor that determines Kenyas vision 2030. Therefore, the study recommends increasing the banking customers, advancing affordable and accessible banking services to disadvantaged groups in different regions in the country. In this regard, reforms in financial sector should aim at increasing financial inclusion through digital finance which is a cost cutting measure and to ensure that bank stability indicators commensurate in the role of deepening financial intermediation and hence forming an all-inclusive and stable financial sector over time.


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EFFECT OF INVESTMENT PORTFOLIO CHOICE ON THE FINANCIAL PERFORMANCE OF INVESTMENT COMPANIES LISTED AT THE NAIROBI SECURITIES EXCHANGE

Kenga Dominic Shukrani - Post-graduate Student, Department of Accounting and Finance, Technical University of Mombasa, Kenya

Georgina Wanga Ifire - Post-graduate Student, Department of Accounting and Finance, Technical University of Mombasa, Kenya

Umulkulthum Musa Yeya - Post-graduate Student, Department of Accounting and Finance, Technical University of Mombasa, Kenya

Abdulkadir Ali Banafa - Lecturer, Department of Accounting and Finance, Technical University of Mombasa, Kenya


ABSTRACT

Investment is a fundamental financial decision that both businesses and the general public ought to be aware of. Nonetheless, it is imperative to reminisce that every decision has consequences. The effect of investment portfolio choice on the financial performance of investment companies listed at the Nairobi Securities Exchange was investigated in this research study. Specifically, the study endeavored to investigate the effect of investment in bonds, investment in equities, and investment in real estate on the financial performance of investment companies listed at the Nairobi Securities Exchange. The modern portfolio theory, the efficient market hypothesis, the behavioral finance theory, the liquidity preference theory and financial intermediation theory informed this research study. Secondary data was used in this research. The study adopted a descriptive research design in analyzing the effects of the study variables. Several diagnostic and correlations tests were conducted before ultimately running the multiple linear regression model used in modeling the results of this study. The correlation results indicated a strong positive relationship between investment in bonds, equities and real estate with financial performance. Hypothesis testing at 5% level of significance established a significant effect on investment in bonds and investment in real estate, thus leading to the rejection of H01 and H03, while H02 was accepted. It was concluded that investment in bonds and real estate significantly affect the financial performance of investment companies listed at the Nairobi Securities Exchange. Thus, close monitoring and awareness creation to investors, governments and the general public around these variables is paramount for informed investment decision making.


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EFFECTIVENESS OF STAKEHOLDERS INVOLVEMENT AND SOLID WASTE MANAGEMENT IN MOMBASA COUNTY KENYA

Lynne Farrah - Department Of Accounting and Finance, School of Business, Kenyatta University, Kenya

Peter Ng’ang’a - Department Of Accounting and Finance, School of Business, Kenyatta University, Kenya


ABSTRACT

Solid waste management is a public issue with health, environmental, economic and social implications at the home, local, national and international levels. The overall purpose of this study was to investigate stakeholder involvement and waste management in Mombasa County, Kenya. In particular, to determine the stakeholders’ awareness, engagement, commitment, capacity building on solid waste management. Stakeholder theory and capacity building theory were used as the theoretical framework. Therefore, this survey employed a descriptive survey design. A stratified cluster sampling technique was used. A household approach was then used that factored the socio-economic conditions, level of waste generation, the sub-county administration units and the demographic details of a region. Thus, the study utilised a two-stage cluster sampling within the strata of waste generators and waste managers in Mombasa County for the period of 4 weeks. The questionnaires and interview schedule were utilized to gather primary data. Pre-testing was done at Kisauni Constituency where validity and reliability was tested. Therefore, all the predictor items had a Cronbach’s Alpha Coefficient greater than 0.7. A response rate of 77.4% (240) was achieved that included waste generators who were the household heads, and waste collectors/managers who were the DoEWE managers, project managers NGO/CBO and private solid firms’ managers. The odds ratio indicates that the odds of effective solid waste management practices increases by a factor of 2.459 on stakeholder’s awareness, 0.108 on stakeholder’s engagement, 0.679 on stakeholder’s capacity building and 2.671 on stakeholder’s commitment to 3R. Solid waste management was found to be statistically significant with the predictor variables of the study. SWM has a moderate correlation (0.491) on awareness, low correlation (0.189) on engagement, moderately high correlation (0.574) on commitment and a moderate correlation (0.318) on capacity building. This study informs the importance of involving the stakeholders in order to achieve effective solid waste management. Policies and strategic plans written in consultation with all the relevant stakeholders will help in improving the current state of solid waste management in Mombasa County. Appropriate laws, regulations and enactment will be on track and operational inefficiencies will be reduced if the stakeholders are involved in the issue of solid waste management.


Full Length Research (PDF Format)