FREDRICK WAWERU - Academia.edu (original) (raw)
Papers by FREDRICK WAWERU
Zenodo (CERN European Organization for Nuclear Research), Jul 11, 2023
Tax planning is one of the critical tools used by both government and firms to achieve optimum re... more Tax planning is one of the critical tools used by both government and firms to achieve optimum revenue. Tax laws are formulated by different government authorities to derive maximum benefit from tax provisions. Although tax preparation might boost profitability, it can also come at the expense, preventing businesses from optimizing revenue by tax planning. For example, when corporate structure is a requirement for getting the intended tax advantages, possible expenses can arise if tax planning is disputed by taxation, resulting in brand damage. Various studies have been carried out on board attributes and tax planning among different sectors and different nations all this having mixed results. Therefore, this study sought to investigate the effect of board size on tax planning amongst firms listed at the Nairobi Securities Exchange, Kenya. The sample for the investigation included 65 Nairobi Securities Exchange listed companies listed between 2014 and 2021, and secondary panel data was collected from these companies using a census sampling technique. The study adopted descriptive and panel regression techniques of analysis which has some diagnostic tests. Ethical standards were adhered to in the study. Revelation from the survey showed that board size significantly in a manner that is positive with effect on tax planning of listed firms. The report consequently suggests that board size be decreased to improve tax planning effectiveness for Kenyan listed companies at the Nairobi Securities Exchange. This would enable the board of directors of the companies to facilitate decision-making within the shortest time frame possible.
International Journal of Finance and Accounting, May 3, 2023
The informal sector of the Kenyan economy continues to remain the largest employer of a majority ... more The informal sector of the Kenyan economy continues to remain the largest employer of a majority of the population. However, it is bedevilled by a variety of challenges, chief of them being inadequate access to credit. To address this, the government has set up development financial institutions such as Kenya Industrial Estates (KIE) and mandated them with the role of availing loans to the sector in order to spur economic growth. The low rate of loan repayment advanced by Development Financial Institutions (DFIs) has necessitated the need to investigate the cause(s) of this adverse trend. This research was undertaken to probe how credit risk assessment affects loan repayment in development financial institutions, with Kenya Industrial Estates Ltd as a case study. The specific objectives were to find out how borrowers' character and capacity affect loan repayment at KIE. A descriptive design guided the study with primary data being obtained through a questionnaire, whose reliability was tested and found to be acceptable with a Cronbach alpha of 0.795. A census was conducted on all 28 branches in Kenya. Two respondents from each branch were selected purposively to result in a total of 56 respondents. Regression analysis suggested that borrowers' character and capacity positively and significantly affected loan repayment. The null hypotheses for the two variables were subsequently rejected. Spearman's correlation coefficient for the two predictor variables further revealed that they influenced loan repayment positively. The study concludes that borrowers' character and capacity have a profound effect on loan repayment among DFIs. The study recommends that DFIs need screen borrowers' credit history and debt-to-income ratio thoroughly before advancing loans in order to improve loan repayment.
Stratford Peer Reviewed Journals and Book Publishing, 2019
International Journal of Current Aspects in Finance, Banking and Accounting, 2021
Financing decisions have been a challenge to real estate developers in Kenya. This is because, re... more Financing decisions have been a challenge to real estate developers in Kenya. This is because, real estate investments are perceived to be capital intensive in nature. It is expected that real estate sector should develop in line with population increases which characterises most emerging economies. However, the provision of housing units per year is below the demand. In Nairobi region the demand for housing is 200,000 units per year while the actual production is estimated to be 50,000 units annually thus outlining a shortage of 150,000 units. Past studies indicate that where a robust financial market prevails, investors are able to access funds for investment projects. This current study seeks to establish the effect of financing option on real estate growth in Kenya. The specific objectives were; to determine the effect of mortgage financing on growth rate of real estate development companies in Kenya, to find out the effect of retained earnings on growth rate of real estate dev...
International Journal of Current Aspects in Finance, Banking and Accounting, 2021
Commercial banks serve as key financial intermediaries in facilitation of the flow of money in th... more Commercial banks serve as key financial intermediaries in facilitation of the flow of money in the banking industry. Commercial banks offer credit to investment banks in order to offer investment opportunities for risky investments especially for financial securities using depositors’ money. Globally, banks are affected by broad difficulties in the operating environment. The banking industry has embraced innovation to sustain competitiveness. Financial innovations used by commercial banks revolve around the latest product, service and its conveyance to consumers. Consequently, this information influenced the research with its aim as; investigating innovative banking applications and monetary capability of banks. Particular goals included examining how; real time gross settlements (RTGS), electronic fund transfers (EFT), pay bill innovation in mobile banking and the extent of agency banking influence monetary potential of banks. Research anchored on the Schumpeter theory of innovatio...
International Journal of Current Aspects in Finance, Banking and Accounting, 2020
Profitability is a key aspect of organization financial performance. Kenya SACCOs have been rated... more Profitability is a key aspect of organization financial performance. Kenya SACCOs have been rated fastest growing SACCOs in Africa. However, this growth is largely attributed to growth in membership and penetration. On the other hand the sub sector has recorded irregular trend on the profitability over the last half a decade. Though past literature has tried to link financial risk management to profitability levels, a range of knowledge gaps remain undressed. The current study therefore sought to establish the effect of financial risk management on profitability targeting deposit-taking SACCOs in Nyeri County. To address this objective, the study targeted the following specific objectives; to examine the effect of credit mitigation, liquidity risk controls operational risk mitigation and finally compliance risk mitigation on profitability of deposit taking SACCOs in Nyeri County. Descriptive study design adopted targeting a population of 8 deposit-taking SACCOs. A census study appro...
The International Journal of Business & Management, 2019
Accounting Disclosures and Firm Value of Commercial Banks Listed on the Nairobi Security Exchange... more Accounting Disclosures and Firm Value of Commercial Banks Listed on the Nairobi Security Exchange, Kenya 1. Introduction and Background Over the last few decades, there has been an increase in the use of International Financial Reporting Standards (IFRS) and its predecessor the International Accounting Standards (IAS) in major corporations across the globe (Alfraih & Alanezi, 2015). According to the International Accounting Standards Board (IASB) (2014) more than 130 countries have adopted the use of the IFRS. The principle objective of having IFRS is to ensure high-quality reporting standards by companies. However, over the same period, there has been an endless stream of corporate collapses and scandals that were attributed to poor accounting standards and disclosures (Yink, Jide, & Emmanuel, 2015). Some of the scandals included Enron, Xerox, Reliant Resources, Global Crossings, CUC International, Adelphia Communications, Waste Management, Rite Aid and World Com (Waweru, 2018). The Xerox and Enron scandal combined cost the economy of the United States more than $ 35 billion. These scandals have not been limited to the United States with numerous scandals being reported across the globe. In Kenya, various companies have been involved in the misappropriation of funds including Simple Homes Holding Cooperatives, Haco Tiger Brands, Dubai Bank, Imperial Bank, Uchumi, CMC Holdings, Mumias Sugar and Kenya Airways (Guguyu.2015; Mwiti, 2017). Following the closure of Chase Bank in 2016, it emerged that more than Kshs. 16.6 billion had been lent to the bank insiders most of whom were the banks directors. This information had not been disclosed by the banks auditors despite it being a mandatory requirement (Herbling, 2016). This was particularly worrisome given that two other banks Dubai Bank and Imperial Bank had been closed due to similar irregularities. Indicating perhaps that the information disclosed being disclosed by entities in Kenya was not adequate or accurate. As the Kenyan government makes concerted efforts to implement its economic blue print dubbed Vision 2030, one of the key issues that needs to be addressed is building investor confidence in the economy. According to Mugwe (2012), the ranking of Kenya in the global competitive report is poorer than it should be due to the unethical behaviour of firms, strength of investor protection, integrity of auditing and reporting standards, and the protection of minority shareholders. Due to the numerous corporate scandals, the demand for corporate transparency in Kenya has arisen, particularly for firms listed at the Nairobi Security
International Journal of Finance and Accounting
Purpose: The objective was to find out the effect of rights issue, bonus issue and stock split an... more Purpose: The objective was to find out the effect of rights issue, bonus issue and stock split announcements on share returns of firms listed in Nairobi Securities Exchange. Materials and Methods: Event study research design was used in the study. Target population comprised all companies in the Nairobi Securities Exchange register that announced bonus issue, rights, and stock split from 2014 to 2020. There were 6 companies which announced rights issue, 17 companies which announced bonus issue and 2 companies which announced stock splits. The study employed event study methodology whereby collection of secondary data was done for 30 days before and after respectively for each bonus issue, rights issue and stock split announcement. Statistical bias was eliminated by using normality and autocorrelation tests there after the Mean Adjusted Return Model was used in determining expected returns and abnormal returns. Results: In all the companies there were abnormal returns which prove th...
International Journal of Academic Research in Business and Social Sciences, Dec 6, 2016
This study envisaged to determine the relationship between forward-looking information disclosure... more This study envisaged to determine the relationship between forward-looking information disclosure and financial performance of non-financial firms listed in the Nairobi Securities Exchange (NSE). Performance indicator was market based measurement (Tobin's Q ratio). The study employed descriptive cross-sectional research design. A census of 45 non-financial firms listed in NSE, was taken. The study used secondary panel data contained in the annual reports of non-financial firms listed in NSE, Kenya. The data was extracted from the NSE hand book for the period 2011-2015 and from companies' websites. This was complimented by semistructured questionnaires which were given to 45 Chief Executive Officers. Data analysis was done by both descriptive (measures of central tendency and dispersion) and inferential statistic (multiple regression analysis and correlation analysis) with help of Statistical Packages of Social Sciences (SPSS version 22). The results revealed that there was a significant positive linear relationship between forward-looking information disclosure and firm financial performance measured by Tobin's Q of listed non-financial firms in Kenya. Based on these findings the study concluded that listed non-financial firms should voluntary disclose their forward-looking information to all their stakeholders.
This study envisaged to determine the relationship between Value Added Statement Disclosure and f... more This study envisaged to determine the relationship between Value Added Statement Disclosure and financial performance of non-financial firms listed in the Nairobi Securities Exchange (NSE). Performance indicator was market based measurement (Tobin’s Q ratio). The study employed descriptive cross-sectional research design. A census of 45 nonfinancial firms listed in NSE, was taken. The study used secondary panel data contained in the annual reports of non-financial firms listed in NSE, Kenya. The data was extracted from the NSE hand book for the period 2011-2015 and from companies’ websites. This was complimented by semistructured questionnaires which were given to 45 Chief Executive Officers. Data analysis was done by both descriptive (measures of central tendency and dispersion) and inferential statistic (multiple regression analysis and correlation analysis) with help of Statistical Packages of Social Sciences (SPSS version 22). The results revealed that there was a significant po...
Zenodo (CERN European Organization for Nuclear Research), Jul 11, 2023
Tax planning is one of the critical tools used by both government and firms to achieve optimum re... more Tax planning is one of the critical tools used by both government and firms to achieve optimum revenue. Tax laws are formulated by different government authorities to derive maximum benefit from tax provisions. Although tax preparation might boost profitability, it can also come at the expense, preventing businesses from optimizing revenue by tax planning. For example, when corporate structure is a requirement for getting the intended tax advantages, possible expenses can arise if tax planning is disputed by taxation, resulting in brand damage. Various studies have been carried out on board attributes and tax planning among different sectors and different nations all this having mixed results. Therefore, this study sought to investigate the effect of board size on tax planning amongst firms listed at the Nairobi Securities Exchange, Kenya. The sample for the investigation included 65 Nairobi Securities Exchange listed companies listed between 2014 and 2021, and secondary panel data was collected from these companies using a census sampling technique. The study adopted descriptive and panel regression techniques of analysis which has some diagnostic tests. Ethical standards were adhered to in the study. Revelation from the survey showed that board size significantly in a manner that is positive with effect on tax planning of listed firms. The report consequently suggests that board size be decreased to improve tax planning effectiveness for Kenyan listed companies at the Nairobi Securities Exchange. This would enable the board of directors of the companies to facilitate decision-making within the shortest time frame possible.
International Journal of Finance and Accounting, May 3, 2023
The informal sector of the Kenyan economy continues to remain the largest employer of a majority ... more The informal sector of the Kenyan economy continues to remain the largest employer of a majority of the population. However, it is bedevilled by a variety of challenges, chief of them being inadequate access to credit. To address this, the government has set up development financial institutions such as Kenya Industrial Estates (KIE) and mandated them with the role of availing loans to the sector in order to spur economic growth. The low rate of loan repayment advanced by Development Financial Institutions (DFIs) has necessitated the need to investigate the cause(s) of this adverse trend. This research was undertaken to probe how credit risk assessment affects loan repayment in development financial institutions, with Kenya Industrial Estates Ltd as a case study. The specific objectives were to find out how borrowers' character and capacity affect loan repayment at KIE. A descriptive design guided the study with primary data being obtained through a questionnaire, whose reliability was tested and found to be acceptable with a Cronbach alpha of 0.795. A census was conducted on all 28 branches in Kenya. Two respondents from each branch were selected purposively to result in a total of 56 respondents. Regression analysis suggested that borrowers' character and capacity positively and significantly affected loan repayment. The null hypotheses for the two variables were subsequently rejected. Spearman's correlation coefficient for the two predictor variables further revealed that they influenced loan repayment positively. The study concludes that borrowers' character and capacity have a profound effect on loan repayment among DFIs. The study recommends that DFIs need screen borrowers' credit history and debt-to-income ratio thoroughly before advancing loans in order to improve loan repayment.
Stratford Peer Reviewed Journals and Book Publishing, 2019
International Journal of Current Aspects in Finance, Banking and Accounting, 2021
Financing decisions have been a challenge to real estate developers in Kenya. This is because, re... more Financing decisions have been a challenge to real estate developers in Kenya. This is because, real estate investments are perceived to be capital intensive in nature. It is expected that real estate sector should develop in line with population increases which characterises most emerging economies. However, the provision of housing units per year is below the demand. In Nairobi region the demand for housing is 200,000 units per year while the actual production is estimated to be 50,000 units annually thus outlining a shortage of 150,000 units. Past studies indicate that where a robust financial market prevails, investors are able to access funds for investment projects. This current study seeks to establish the effect of financing option on real estate growth in Kenya. The specific objectives were; to determine the effect of mortgage financing on growth rate of real estate development companies in Kenya, to find out the effect of retained earnings on growth rate of real estate dev...
International Journal of Current Aspects in Finance, Banking and Accounting, 2021
Commercial banks serve as key financial intermediaries in facilitation of the flow of money in th... more Commercial banks serve as key financial intermediaries in facilitation of the flow of money in the banking industry. Commercial banks offer credit to investment banks in order to offer investment opportunities for risky investments especially for financial securities using depositors’ money. Globally, banks are affected by broad difficulties in the operating environment. The banking industry has embraced innovation to sustain competitiveness. Financial innovations used by commercial banks revolve around the latest product, service and its conveyance to consumers. Consequently, this information influenced the research with its aim as; investigating innovative banking applications and monetary capability of banks. Particular goals included examining how; real time gross settlements (RTGS), electronic fund transfers (EFT), pay bill innovation in mobile banking and the extent of agency banking influence monetary potential of banks. Research anchored on the Schumpeter theory of innovatio...
International Journal of Current Aspects in Finance, Banking and Accounting, 2020
Profitability is a key aspect of organization financial performance. Kenya SACCOs have been rated... more Profitability is a key aspect of organization financial performance. Kenya SACCOs have been rated fastest growing SACCOs in Africa. However, this growth is largely attributed to growth in membership and penetration. On the other hand the sub sector has recorded irregular trend on the profitability over the last half a decade. Though past literature has tried to link financial risk management to profitability levels, a range of knowledge gaps remain undressed. The current study therefore sought to establish the effect of financial risk management on profitability targeting deposit-taking SACCOs in Nyeri County. To address this objective, the study targeted the following specific objectives; to examine the effect of credit mitigation, liquidity risk controls operational risk mitigation and finally compliance risk mitigation on profitability of deposit taking SACCOs in Nyeri County. Descriptive study design adopted targeting a population of 8 deposit-taking SACCOs. A census study appro...
The International Journal of Business & Management, 2019
Accounting Disclosures and Firm Value of Commercial Banks Listed on the Nairobi Security Exchange... more Accounting Disclosures and Firm Value of Commercial Banks Listed on the Nairobi Security Exchange, Kenya 1. Introduction and Background Over the last few decades, there has been an increase in the use of International Financial Reporting Standards (IFRS) and its predecessor the International Accounting Standards (IAS) in major corporations across the globe (Alfraih & Alanezi, 2015). According to the International Accounting Standards Board (IASB) (2014) more than 130 countries have adopted the use of the IFRS. The principle objective of having IFRS is to ensure high-quality reporting standards by companies. However, over the same period, there has been an endless stream of corporate collapses and scandals that were attributed to poor accounting standards and disclosures (Yink, Jide, & Emmanuel, 2015). Some of the scandals included Enron, Xerox, Reliant Resources, Global Crossings, CUC International, Adelphia Communications, Waste Management, Rite Aid and World Com (Waweru, 2018). The Xerox and Enron scandal combined cost the economy of the United States more than $ 35 billion. These scandals have not been limited to the United States with numerous scandals being reported across the globe. In Kenya, various companies have been involved in the misappropriation of funds including Simple Homes Holding Cooperatives, Haco Tiger Brands, Dubai Bank, Imperial Bank, Uchumi, CMC Holdings, Mumias Sugar and Kenya Airways (Guguyu.2015; Mwiti, 2017). Following the closure of Chase Bank in 2016, it emerged that more than Kshs. 16.6 billion had been lent to the bank insiders most of whom were the banks directors. This information had not been disclosed by the banks auditors despite it being a mandatory requirement (Herbling, 2016). This was particularly worrisome given that two other banks Dubai Bank and Imperial Bank had been closed due to similar irregularities. Indicating perhaps that the information disclosed being disclosed by entities in Kenya was not adequate or accurate. As the Kenyan government makes concerted efforts to implement its economic blue print dubbed Vision 2030, one of the key issues that needs to be addressed is building investor confidence in the economy. According to Mugwe (2012), the ranking of Kenya in the global competitive report is poorer than it should be due to the unethical behaviour of firms, strength of investor protection, integrity of auditing and reporting standards, and the protection of minority shareholders. Due to the numerous corporate scandals, the demand for corporate transparency in Kenya has arisen, particularly for firms listed at the Nairobi Security
International Journal of Finance and Accounting
Purpose: The objective was to find out the effect of rights issue, bonus issue and stock split an... more Purpose: The objective was to find out the effect of rights issue, bonus issue and stock split announcements on share returns of firms listed in Nairobi Securities Exchange. Materials and Methods: Event study research design was used in the study. Target population comprised all companies in the Nairobi Securities Exchange register that announced bonus issue, rights, and stock split from 2014 to 2020. There were 6 companies which announced rights issue, 17 companies which announced bonus issue and 2 companies which announced stock splits. The study employed event study methodology whereby collection of secondary data was done for 30 days before and after respectively for each bonus issue, rights issue and stock split announcement. Statistical bias was eliminated by using normality and autocorrelation tests there after the Mean Adjusted Return Model was used in determining expected returns and abnormal returns. Results: In all the companies there were abnormal returns which prove th...
International Journal of Academic Research in Business and Social Sciences, Dec 6, 2016
This study envisaged to determine the relationship between forward-looking information disclosure... more This study envisaged to determine the relationship between forward-looking information disclosure and financial performance of non-financial firms listed in the Nairobi Securities Exchange (NSE). Performance indicator was market based measurement (Tobin's Q ratio). The study employed descriptive cross-sectional research design. A census of 45 non-financial firms listed in NSE, was taken. The study used secondary panel data contained in the annual reports of non-financial firms listed in NSE, Kenya. The data was extracted from the NSE hand book for the period 2011-2015 and from companies' websites. This was complimented by semistructured questionnaires which were given to 45 Chief Executive Officers. Data analysis was done by both descriptive (measures of central tendency and dispersion) and inferential statistic (multiple regression analysis and correlation analysis) with help of Statistical Packages of Social Sciences (SPSS version 22). The results revealed that there was a significant positive linear relationship between forward-looking information disclosure and firm financial performance measured by Tobin's Q of listed non-financial firms in Kenya. Based on these findings the study concluded that listed non-financial firms should voluntary disclose their forward-looking information to all their stakeholders.
This study envisaged to determine the relationship between Value Added Statement Disclosure and f... more This study envisaged to determine the relationship between Value Added Statement Disclosure and financial performance of non-financial firms listed in the Nairobi Securities Exchange (NSE). Performance indicator was market based measurement (Tobin’s Q ratio). The study employed descriptive cross-sectional research design. A census of 45 nonfinancial firms listed in NSE, was taken. The study used secondary panel data contained in the annual reports of non-financial firms listed in NSE, Kenya. The data was extracted from the NSE hand book for the period 2011-2015 and from companies’ websites. This was complimented by semistructured questionnaires which were given to 45 Chief Executive Officers. Data analysis was done by both descriptive (measures of central tendency and dispersion) and inferential statistic (multiple regression analysis and correlation analysis) with help of Statistical Packages of Social Sciences (SPSS version 22). The results revealed that there was a significant po...