Herick Ondigo | University of Nairobi, Kenya (original) (raw)

Papers by Herick Ondigo

Research paper thumbnail of Does Corporate Diversification Influence Market Share? Evidence from Kenyan Insurance Sector

European Journal of Business and Management Research

Insurance industry is among the large investors in the financial markets that play a key role of ... more Insurance industry is among the large investors in the financial markets that play a key role of stabilizing financial systems. The industry acts as a growing link between insurers and other financial intermediaries by safeguarding the financial security of households and firms through insurance of risks, provision of long -term capital and overall stability of an economy. Global corporate failure has not spared the insurance industry at regional and local levels which has triggered insurance companies to opt for diversification to expand their markets, enhance returns and survival. This study examines corporate diversification-market share link in the Kenyan insurance sector. The study employs entropy index to measure corporate diversification, and market share as indicator for performance. The study is anchored on modern portfolio theory and supported theory of organizational effectiveness. The target population comprises fifty-six insurance firms in Kenya. Secondary data was coll...

Research paper thumbnail of Relationship between Interest Rates and Gearing Ratios of Firms Listed in the Nairobi Securities Exchange

International Journal of Finance and Accounting

Purpose: The objective of this study was to establish the relationship between interest rates and... more Purpose: The objective of this study was to establish the relationship between interest rates and gearing ratios of firms listed in the Nairobi Securities Exchange.Methodology: The study was carried out using a longitudinal research design, employing secondary quantitative data. The population for this study constituted of all listed companies in the Nairobi Securities Exchange. As at December 2013, there are 62 companies listed on the Nairobi Securities Exchange. This study did not sample and hence a census survey was carried out for the study. The study used secondary data. All the data was collected by review of documents, annual reports of the companies, the Nairobi Securities Exchange Handbooks and published books of accounts. The selected period was year 2009 to year 2013 (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 generat...

Research paper thumbnail of The Effect of Mergers and Acquisitions Strategies on Financial Performance of Commercial Banks in Kenya

European Scientific Journal, ESJ, Aug 31, 2022

The operating environment for commercial banks in Kenya has become very dynamic and highly compet... more The operating environment for commercial banks in Kenya has become very dynamic and highly competitive. The witnessed cases of bank failure and poor financial performance have made commercial banks develop strategies to improve their financial performance, remain competitive, and meet the regulator's compliance requirements. Mergers and Acquisitions Strategies are on the rise as a strategy aimed to alleviate the ailing sector. In light of this, the purpose of this study was to examine the impact on financial performance of commercial banks in Kenya as a result of mergers and acquisitions Strategies. Operating efficiency and market share impact on the financial performance of commercial banks in Kenya formed the specific objectives. The study objectives were supported by synergies theory, resourcebased view theory and agency theory. The study adopted a correlational descriptive research design, including cross-sectional data analysis. By the year 2017, 30 commercial banks in Kenya had considered mergers and acquisitions strategies were considered as the population of this study. An average of three-year ratios was computed in both pre-merger and postacquisition periods inorder to assess the impact financial performance. The years of the deal were excluded. The mean difference between the pre-Mergers and Acquisitions Strategies and post-Mergers and Acquisitions Strategies

Research paper thumbnail of Relationship Between Economic Growth, Financial Deepening, Income Distribution, Financial Efficiency and Poverty Levels Within East Africa Community Member Countries

African Development Finance Journal, Aug 3, 2020

Research paper thumbnail of Sin Activities and Financial Performance

This study sought to establish the effect of sin activities on the financial performance of compa... more This study sought to establish the effect of sin activities on the financial performance of companies listed at the Nairobi Securities Exchange. The study adopted a descriptive research design with the population consisting of all 63 listed firms in the NSE as at December 2013. The sample of the study consisted of the 20 high performing NSE companies. At the time there are only two sin companies in this index listed. Furthermore this study grouped 18firms into the non-sin companies‟ category and another 2 firms (BAT ad EABL) into the sin companies group. Secondary data was gathered from NSE financial reports data base for analysis which was done using the Statistical Package for Social Sciences (SPSS version 19) to generate the descriptive statistics and also to generate the trends results and correlation findings. One sampled T-Test was used to check whether the mean performance of Sin companies differ from the mean performance of non-sin companies. Findings on the analysis of vari...

Research paper thumbnail of Information content of Annual reports and Accounts

Research paper thumbnail of Understanding financial statements

Financial accounting is the branch of accounting concerned with the preparation of financial stat... more Financial accounting is the branch of accounting concerned with the preparation of financial statements. There are four primary financial statements: the Balance Sheet, Income Statement, Cash Flow Statement, and Statement of Retained Earnings. These reports are used collectively to assess the financial position of a business.

Research paper thumbnail of The reletionship between financial liberalization and economic growth in Kenya

Financial liberalization in Kenya is much more recent. Ceilings on bank lending rates were not re... more Financial liberalization in Kenya is much more recent. Ceilings on bank lending rates were not removed until July 1991. The central bank continued to announce guidelines for the sectoral composition of bank credit expansion, although these were not strictly enforced after interest rate liberalization. Although the Kenyan authorities have allowed market forces to play a relatively influential role in the financial system, the government maintains a formidable presence in the financial sector. The primary function of the central bank is to regulate the flow of money and credit in order to maintain economic stability, efficiency and growth of the country. To earn profit is the secondary objective of the Central Bank but the main motive is to regulate the monetary and credit system of the country and to foster its growth in the best national interest with a view to securing monetary stability and full utilization of the country's productive resources. These regulations provide guide...

Research paper thumbnail of A Comparative Study of the Returns of Quoted Sin and Non Sin Stocks at the Nairobi Securities Exchange

International Journal of Finance and Accounting, 2016

Purpose: The purpose of the study was to compare returns of quoted sin and non-sin stocks at the ... more Purpose: The purpose of the study was to compare returns of quoted sin and non-sin stocks at the Nairobi Securities Exchange. The major objective of the study was to establish whether stock returns of sin stocks outperform non sin stocks.Methodology: The study used explanatory research design with the population consisting of all firms listed in the NSE. The sample of the study consisted of the top 20 NSE firms. The study grouped 18 firms into the non-sin stock category and another 2 firms (BAT ad EABL) into the sin stock category. Secondary data sources were used in gathering data for analysis which was done using the Statistical Package for Social Sciences (SPSS version 20) to generate the descriptive statistics and also to generate inferential results.Results: The study found out that sin stocks have higher capital gains, high expected return and dividends than in non-sin stocksUnique contribution to theory, practice and policy: The study recommended that Sin stocks have higher ...

Research paper thumbnail of The Effect of Working Capital Management Policies on Financial Performance of Commercial and Services Sector Firms Listed at the Nairobi Securities Exchange

The purpose of this study was to examine the effect of working capital policy on profitability of... more The purpose of this study was to examine the effect of working capital policy on profitability of commercial and service sector companies listed at the Nairobi securities Exchange. Financial statements of nine commercial and service sector companies were used for a five-year period (2012-2016). The study findings were; there exists an insignificant positive relationship between conservative investment policy and profitability indicating that an increase in current assets leads to an increased profitability; there exists an insignificant positive relationship between aggressive financing policy and profitability translating to the fact that if this sector firms use more current liability it leads to increase in profitability. There exists a negative relationship between financial leverage and profitability of the firm. This indicates that as the total liabilities decreases it leads to an increase in profitability, managers can increase profitability by reducing the amount of non-curr...

Research paper thumbnail of The Effect of Inflation on the Stock Market Returns of the Nairobi Securities Exchange by Hakim Vena D 63 / 79688 / 2012 a Research Project Submitted in Partial Fulfilment of the Requirement for the Award of the Degree

Research paper thumbnail of The Effect of Technological Innovation on the Financial Performance of Commercial Banks in Kenya

International Journal of Finance and Accounting

Purpose: The present study endeavored to determine the effects of technological innovation on the... more Purpose: The present study endeavored to determine the effects of technological innovation on the performance of commercial banks in Kenya.Methodology: The study, which was a census, employed a descriptive cross sectional design and targeted all the commercial banks in Kenya. Secondary data in form of annual financial reports was obtained from Central Bank of Kenya. In addition, primary data was gathered from personnel from the customer care departments using a structured questionnaire. Data were analyzed using IBM SPSS Statistics 21.0 and involved computation of frequencies, descriptive statistics and multiple regression analysis.Results: Most of the respondents affirmed the positive impacts of technological innovations including ease of access, convenience, user friendliness among others. The study showed that customer care employees at the banks valued technological innovations. Moreover, the results revealed a positive and significant relationship between banks’ performance in ...

Research paper thumbnail of Das Einzelkornschleifen*/The single grain grinding

wt Werkstattstechnik online, 2017

<p>Die präsentierte Methode stellt eine Weiterentwicklung des Ritzprozesses dar. Das Ritzwe... more <p>Die präsentierte Methode stellt eine Weiterentwicklung des Ritzprozesses dar. Das Ritzwerkzeug wird dabei aus einem Schleifwerkzeug herausgearbeitet. Somit wird der Einfluss der Bindung bei der Analyse des Einsatzverhaltens berücksichtigt. Das Belastungskollektiv je Schleifkorn wird damit bestimmt und für die zukünftige Auslegung von Schleifwerkzeugen genutzt.</p> <p>&amp;nbsp;</p> <p>The presented method represents an advancement of the scratching process. The grain is attached to the scratching tool, which is manufactured on the basis of a real grinding wheel. Thus, the influence of the bond on the chip formation and wear behavior at the grain level is taken into account. A realistic single grain load can be determined and used for the design of grinding tools.</p>

Research paper thumbnail of The Effect of Financial Innovations on the Financial Performance of Commercial Banks in Kenya

International Journal of Finance and Accounting, 2016

Purpose: The study sought to investigate the effect of financial innovations on financial perform... more Purpose: The study sought to investigate the effect of financial innovations on financial performance of commercial banks in Kenya. The main problem was that there is an increase in the number of financial innovations, but whether the innovations in banking industry are the main determinants of financial performance is a hard to tell. Despite the significance of financial innovation, the effect of innovation on financial performance is still misunderstood. Methodology: The study adopted an explanatory research design. The population of the study was all the 43 commercial banks operating in Kenya in the study period. The study conducted a census on all the 43 commercial banks. The study used primary data. An ordinary linear regression model was used. The regressions were conducted using statistical package for social sciences (SPSS) version 20. Results: The study findings indicated that there is a negative and significant relationship between product innovation and ROA. The relations...

Research paper thumbnail of The Relationship Between Credit Risk Management Practices and Financial Performance of Commercialbanks in Liberia

Credit risk management h b ' m an important topic for financial institutes, especially since ... more Credit risk management h b ' m an important topic for financial institutes, especially since the business sector of limn 't ' \l s ·r icl.S is related to conditions of uncertainty. The turm~il of the financial industry ·mph 1 ·iz · th • Importance of effective risk management procedures. Consequent! . thi r · · ·ar h I oks at "the relationship between Credit Risk management practice and the linunciul p ril rmance of Commercial banks in Liberia." This research objective was formulated in order to gain a better understanding of credit risk management practices and its relation hip \\ith financial performance (return on asset). Quantitati e research design is employed under the quantitative research design survey method is u ed. The data were collected by cross sectional survey method. The conclusion of this study shows a positive relationship between the credit risk management practices and financial performance. Commercial banks during the pre-liberalization per...

Research paper thumbnail of The Moderating Effect of Firm Characteristics on the Relationship between Corporate Governance and Financial Performance of Commercial Bank in Kenya

Sound Corporate Governance and effective Risk Management are accepted as a major cornerstone of b... more Sound Corporate Governance and effective Risk Management are accepted as a major cornerstone of bank management by academicians, practitioners as well as by regulators. The Basel core principles for effective banking supervision, the Central Banks and Capital Market Authorities of different jurisdictions have, from time to time, issued guidelines on both Corporate Governance and Risk Management to ensure comprehensive and proper functioning of the financial system that align the interest of all the stakeholders .In spite of these interventions a number of banks have failed to operate above board forcing the regulators to intervene to ensure sanity in the financial system. The objective of the study was to investigate the effect of Firm Characteristics on the relationship between Corporate Governance and Financial Performance of commercial bank in Kenya. This study used the CAMEL rating system that analyses capital adequacy, asset quality, management quality, earnings, and liquidit...

Research paper thumbnail of The Intervening Effect of Risk Management on the Relationship between Corporate Governance and Financial Performance of Commercial Banks in Kenya

Corporate Governance, Risk Management and Financial performance are important concepts for effect... more Corporate Governance, Risk Management and Financial performance are important concepts for effective bank management. To this end, the Basel Accord, the Central Banks and Capital Market Authorities of different jurisdictions have overtime issued guidelines on Corporate Governance and Risk Management to ensure proper functioning of the financial system that maximizes shareholders wealth as well as satisfying the interest of other stakeholders .Despite the legislative and regulatory interventions, banks have failed to operate above board forcing the regulators to apply drastic measures to restore sanity in the financial system. The objective of the study was to assess the effect of Risk Management on the relationship between Corporate Governance and Financial Performance of commercial banks in Kenya. Previous studies have used different performance indicators used to evaluates financial performance of commercial banks. This study adopted the CAMEL rating system that analyses performa...

Research paper thumbnail of The Effect of Forensic Accounting on Corporate Crime Mitigation among Listed Firms in the Nairobi Securities Exchange

Increased globalization has led to rapid changes in the socio-economic structures, modes of commu... more Increased globalization has led to rapid changes in the socio-economic structures, modes of communication and technology. Due to this, there has been a transnational growth of transactions and diversification of economic activities. These developments and changes have therefore led to enormous opportunities for economic and financial crimes, which have gained a global concern. Such events have necessitated the need for forensic interventions hence the reason why forensic auditing and accounting are gaining fast-paced precedence. This harsh global environment has also necessitated for a great impact on the controls and procedures to be established by forensic accountants and auditors in the conduct of the examination to detect, prevent and respond to such crimes with fraud as a crime being at the forefront. Various measures have been put in place to prevent and detect corporate crime in many organizations, but employees and external fraudsters have not been deterred by this from taki...

Research paper thumbnail of The Effect of Behavioral Factors on Investment Decisions in Real Estate Sector in Nairobi County

Purpose- This study was intent on establishing the effect of behavioral factors on investment dec... more Purpose- This study was intent on establishing the effect of behavioral factors on investment decisions in the real estate sector in Nairobi County. The behavioral factors explored for this study were herd behavior, representativeness, anchoring and overconfidence. Methodology- The study exploited descriptive research design to explicate how investors in real estate sector in Nairobi County make investment decisions from a behavioral finance point of view. Descriptive statistics and inferential statistics were used to scrutinize the data. Descriptive statistics adopted in this study included frequencies, mean, percentages and standard deviation. Additionally, inferential statistics of regression models and correlation analysis were used to examine the relationship of the study variables. The scrutinized data were presented in form of frequency tables and pie charts. Findings- The results of the study revealed that 53.71% of the respondents make use of the intuitions when evaluating ...

Research paper thumbnail of Business Forecasting, Profitability & Cash Flow Management

Research paper thumbnail of Does Corporate Diversification Influence Market Share? Evidence from Kenyan Insurance Sector

European Journal of Business and Management Research

Insurance industry is among the large investors in the financial markets that play a key role of ... more Insurance industry is among the large investors in the financial markets that play a key role of stabilizing financial systems. The industry acts as a growing link between insurers and other financial intermediaries by safeguarding the financial security of households and firms through insurance of risks, provision of long -term capital and overall stability of an economy. Global corporate failure has not spared the insurance industry at regional and local levels which has triggered insurance companies to opt for diversification to expand their markets, enhance returns and survival. This study examines corporate diversification-market share link in the Kenyan insurance sector. The study employs entropy index to measure corporate diversification, and market share as indicator for performance. The study is anchored on modern portfolio theory and supported theory of organizational effectiveness. The target population comprises fifty-six insurance firms in Kenya. Secondary data was coll...

Research paper thumbnail of Relationship between Interest Rates and Gearing Ratios of Firms Listed in the Nairobi Securities Exchange

International Journal of Finance and Accounting

Purpose: The objective of this study was to establish the relationship between interest rates and... more Purpose: The objective of this study was to establish the relationship between interest rates and gearing ratios of firms listed in the Nairobi Securities Exchange.Methodology: The study was carried out using a longitudinal research design, employing secondary quantitative data. The population for this study constituted of all listed companies in the Nairobi Securities Exchange. As at December 2013, there are 62 companies listed on the Nairobi Securities Exchange. This study did not sample and hence a census survey was carried out for the study. The study used secondary data. All the data was collected by review of documents, annual reports of the companies, the Nairobi Securities Exchange Handbooks and published books of accounts. The selected period was year 2009 to year 2013 (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 generat...

Research paper thumbnail of The Effect of Mergers and Acquisitions Strategies on Financial Performance of Commercial Banks in Kenya

European Scientific Journal, ESJ, Aug 31, 2022

The operating environment for commercial banks in Kenya has become very dynamic and highly compet... more The operating environment for commercial banks in Kenya has become very dynamic and highly competitive. The witnessed cases of bank failure and poor financial performance have made commercial banks develop strategies to improve their financial performance, remain competitive, and meet the regulator's compliance requirements. Mergers and Acquisitions Strategies are on the rise as a strategy aimed to alleviate the ailing sector. In light of this, the purpose of this study was to examine the impact on financial performance of commercial banks in Kenya as a result of mergers and acquisitions Strategies. Operating efficiency and market share impact on the financial performance of commercial banks in Kenya formed the specific objectives. The study objectives were supported by synergies theory, resourcebased view theory and agency theory. The study adopted a correlational descriptive research design, including cross-sectional data analysis. By the year 2017, 30 commercial banks in Kenya had considered mergers and acquisitions strategies were considered as the population of this study. An average of three-year ratios was computed in both pre-merger and postacquisition periods inorder to assess the impact financial performance. The years of the deal were excluded. The mean difference between the pre-Mergers and Acquisitions Strategies and post-Mergers and Acquisitions Strategies

Research paper thumbnail of Relationship Between Economic Growth, Financial Deepening, Income Distribution, Financial Efficiency and Poverty Levels Within East Africa Community Member Countries

African Development Finance Journal, Aug 3, 2020

Research paper thumbnail of Sin Activities and Financial Performance

This study sought to establish the effect of sin activities on the financial performance of compa... more This study sought to establish the effect of sin activities on the financial performance of companies listed at the Nairobi Securities Exchange. The study adopted a descriptive research design with the population consisting of all 63 listed firms in the NSE as at December 2013. The sample of the study consisted of the 20 high performing NSE companies. At the time there are only two sin companies in this index listed. Furthermore this study grouped 18firms into the non-sin companies‟ category and another 2 firms (BAT ad EABL) into the sin companies group. Secondary data was gathered from NSE financial reports data base for analysis which was done using the Statistical Package for Social Sciences (SPSS version 19) to generate the descriptive statistics and also to generate the trends results and correlation findings. One sampled T-Test was used to check whether the mean performance of Sin companies differ from the mean performance of non-sin companies. Findings on the analysis of vari...

Research paper thumbnail of Information content of Annual reports and Accounts

Research paper thumbnail of Understanding financial statements

Financial accounting is the branch of accounting concerned with the preparation of financial stat... more Financial accounting is the branch of accounting concerned with the preparation of financial statements. There are four primary financial statements: the Balance Sheet, Income Statement, Cash Flow Statement, and Statement of Retained Earnings. These reports are used collectively to assess the financial position of a business.

Research paper thumbnail of The reletionship between financial liberalization and economic growth in Kenya

Financial liberalization in Kenya is much more recent. Ceilings on bank lending rates were not re... more Financial liberalization in Kenya is much more recent. Ceilings on bank lending rates were not removed until July 1991. The central bank continued to announce guidelines for the sectoral composition of bank credit expansion, although these were not strictly enforced after interest rate liberalization. Although the Kenyan authorities have allowed market forces to play a relatively influential role in the financial system, the government maintains a formidable presence in the financial sector. The primary function of the central bank is to regulate the flow of money and credit in order to maintain economic stability, efficiency and growth of the country. To earn profit is the secondary objective of the Central Bank but the main motive is to regulate the monetary and credit system of the country and to foster its growth in the best national interest with a view to securing monetary stability and full utilization of the country's productive resources. These regulations provide guide...

Research paper thumbnail of A Comparative Study of the Returns of Quoted Sin and Non Sin Stocks at the Nairobi Securities Exchange

International Journal of Finance and Accounting, 2016

Purpose: The purpose of the study was to compare returns of quoted sin and non-sin stocks at the ... more Purpose: The purpose of the study was to compare returns of quoted sin and non-sin stocks at the Nairobi Securities Exchange. The major objective of the study was to establish whether stock returns of sin stocks outperform non sin stocks.Methodology: The study used explanatory research design with the population consisting of all firms listed in the NSE. The sample of the study consisted of the top 20 NSE firms. The study grouped 18 firms into the non-sin stock category and another 2 firms (BAT ad EABL) into the sin stock category. Secondary data sources were used in gathering data for analysis which was done using the Statistical Package for Social Sciences (SPSS version 20) to generate the descriptive statistics and also to generate inferential results.Results: The study found out that sin stocks have higher capital gains, high expected return and dividends than in non-sin stocksUnique contribution to theory, practice and policy: The study recommended that Sin stocks have higher ...

Research paper thumbnail of The Effect of Working Capital Management Policies on Financial Performance of Commercial and Services Sector Firms Listed at the Nairobi Securities Exchange

The purpose of this study was to examine the effect of working capital policy on profitability of... more The purpose of this study was to examine the effect of working capital policy on profitability of commercial and service sector companies listed at the Nairobi securities Exchange. Financial statements of nine commercial and service sector companies were used for a five-year period (2012-2016). The study findings were; there exists an insignificant positive relationship between conservative investment policy and profitability indicating that an increase in current assets leads to an increased profitability; there exists an insignificant positive relationship between aggressive financing policy and profitability translating to the fact that if this sector firms use more current liability it leads to increase in profitability. There exists a negative relationship between financial leverage and profitability of the firm. This indicates that as the total liabilities decreases it leads to an increase in profitability, managers can increase profitability by reducing the amount of non-curr...

Research paper thumbnail of The Effect of Inflation on the Stock Market Returns of the Nairobi Securities Exchange by Hakim Vena D 63 / 79688 / 2012 a Research Project Submitted in Partial Fulfilment of the Requirement for the Award of the Degree

Research paper thumbnail of The Effect of Technological Innovation on the Financial Performance of Commercial Banks in Kenya

International Journal of Finance and Accounting

Purpose: The present study endeavored to determine the effects of technological innovation on the... more Purpose: The present study endeavored to determine the effects of technological innovation on the performance of commercial banks in Kenya.Methodology: The study, which was a census, employed a descriptive cross sectional design and targeted all the commercial banks in Kenya. Secondary data in form of annual financial reports was obtained from Central Bank of Kenya. In addition, primary data was gathered from personnel from the customer care departments using a structured questionnaire. Data were analyzed using IBM SPSS Statistics 21.0 and involved computation of frequencies, descriptive statistics and multiple regression analysis.Results: Most of the respondents affirmed the positive impacts of technological innovations including ease of access, convenience, user friendliness among others. The study showed that customer care employees at the banks valued technological innovations. Moreover, the results revealed a positive and significant relationship between banks’ performance in ...

Research paper thumbnail of Das Einzelkornschleifen*/The single grain grinding

wt Werkstattstechnik online, 2017

<p>Die präsentierte Methode stellt eine Weiterentwicklung des Ritzprozesses dar. Das Ritzwe... more <p>Die präsentierte Methode stellt eine Weiterentwicklung des Ritzprozesses dar. Das Ritzwerkzeug wird dabei aus einem Schleifwerkzeug herausgearbeitet. Somit wird der Einfluss der Bindung bei der Analyse des Einsatzverhaltens berücksichtigt. Das Belastungskollektiv je Schleifkorn wird damit bestimmt und für die zukünftige Auslegung von Schleifwerkzeugen genutzt.</p> <p>&amp;nbsp;</p> <p>The presented method represents an advancement of the scratching process. The grain is attached to the scratching tool, which is manufactured on the basis of a real grinding wheel. Thus, the influence of the bond on the chip formation and wear behavior at the grain level is taken into account. A realistic single grain load can be determined and used for the design of grinding tools.</p>

Research paper thumbnail of The Effect of Financial Innovations on the Financial Performance of Commercial Banks in Kenya

International Journal of Finance and Accounting, 2016

Purpose: The study sought to investigate the effect of financial innovations on financial perform... more Purpose: The study sought to investigate the effect of financial innovations on financial performance of commercial banks in Kenya. The main problem was that there is an increase in the number of financial innovations, but whether the innovations in banking industry are the main determinants of financial performance is a hard to tell. Despite the significance of financial innovation, the effect of innovation on financial performance is still misunderstood. Methodology: The study adopted an explanatory research design. The population of the study was all the 43 commercial banks operating in Kenya in the study period. The study conducted a census on all the 43 commercial banks. The study used primary data. An ordinary linear regression model was used. The regressions were conducted using statistical package for social sciences (SPSS) version 20. Results: The study findings indicated that there is a negative and significant relationship between product innovation and ROA. The relations...

Research paper thumbnail of The Relationship Between Credit Risk Management Practices and Financial Performance of Commercialbanks in Liberia

Credit risk management h b ' m an important topic for financial institutes, especially since ... more Credit risk management h b ' m an important topic for financial institutes, especially since the business sector of limn 't ' \l s ·r icl.S is related to conditions of uncertainty. The turm~il of the financial industry ·mph 1 ·iz · th • Importance of effective risk management procedures. Consequent! . thi r · · ·ar h I oks at "the relationship between Credit Risk management practice and the linunciul p ril rmance of Commercial banks in Liberia." This research objective was formulated in order to gain a better understanding of credit risk management practices and its relation hip \\ith financial performance (return on asset). Quantitati e research design is employed under the quantitative research design survey method is u ed. The data were collected by cross sectional survey method. The conclusion of this study shows a positive relationship between the credit risk management practices and financial performance. Commercial banks during the pre-liberalization per...

Research paper thumbnail of The Moderating Effect of Firm Characteristics on the Relationship between Corporate Governance and Financial Performance of Commercial Bank in Kenya

Sound Corporate Governance and effective Risk Management are accepted as a major cornerstone of b... more Sound Corporate Governance and effective Risk Management are accepted as a major cornerstone of bank management by academicians, practitioners as well as by regulators. The Basel core principles for effective banking supervision, the Central Banks and Capital Market Authorities of different jurisdictions have, from time to time, issued guidelines on both Corporate Governance and Risk Management to ensure comprehensive and proper functioning of the financial system that align the interest of all the stakeholders .In spite of these interventions a number of banks have failed to operate above board forcing the regulators to intervene to ensure sanity in the financial system. The objective of the study was to investigate the effect of Firm Characteristics on the relationship between Corporate Governance and Financial Performance of commercial bank in Kenya. This study used the CAMEL rating system that analyses capital adequacy, asset quality, management quality, earnings, and liquidit...

Research paper thumbnail of The Intervening Effect of Risk Management on the Relationship between Corporate Governance and Financial Performance of Commercial Banks in Kenya

Corporate Governance, Risk Management and Financial performance are important concepts for effect... more Corporate Governance, Risk Management and Financial performance are important concepts for effective bank management. To this end, the Basel Accord, the Central Banks and Capital Market Authorities of different jurisdictions have overtime issued guidelines on Corporate Governance and Risk Management to ensure proper functioning of the financial system that maximizes shareholders wealth as well as satisfying the interest of other stakeholders .Despite the legislative and regulatory interventions, banks have failed to operate above board forcing the regulators to apply drastic measures to restore sanity in the financial system. The objective of the study was to assess the effect of Risk Management on the relationship between Corporate Governance and Financial Performance of commercial banks in Kenya. Previous studies have used different performance indicators used to evaluates financial performance of commercial banks. This study adopted the CAMEL rating system that analyses performa...

Research paper thumbnail of The Effect of Forensic Accounting on Corporate Crime Mitigation among Listed Firms in the Nairobi Securities Exchange

Increased globalization has led to rapid changes in the socio-economic structures, modes of commu... more Increased globalization has led to rapid changes in the socio-economic structures, modes of communication and technology. Due to this, there has been a transnational growth of transactions and diversification of economic activities. These developments and changes have therefore led to enormous opportunities for economic and financial crimes, which have gained a global concern. Such events have necessitated the need for forensic interventions hence the reason why forensic auditing and accounting are gaining fast-paced precedence. This harsh global environment has also necessitated for a great impact on the controls and procedures to be established by forensic accountants and auditors in the conduct of the examination to detect, prevent and respond to such crimes with fraud as a crime being at the forefront. Various measures have been put in place to prevent and detect corporate crime in many organizations, but employees and external fraudsters have not been deterred by this from taki...

Research paper thumbnail of The Effect of Behavioral Factors on Investment Decisions in Real Estate Sector in Nairobi County

Purpose- This study was intent on establishing the effect of behavioral factors on investment dec... more Purpose- This study was intent on establishing the effect of behavioral factors on investment decisions in the real estate sector in Nairobi County. The behavioral factors explored for this study were herd behavior, representativeness, anchoring and overconfidence. Methodology- The study exploited descriptive research design to explicate how investors in real estate sector in Nairobi County make investment decisions from a behavioral finance point of view. Descriptive statistics and inferential statistics were used to scrutinize the data. Descriptive statistics adopted in this study included frequencies, mean, percentages and standard deviation. Additionally, inferential statistics of regression models and correlation analysis were used to examine the relationship of the study variables. The scrutinized data were presented in form of frequency tables and pie charts. Findings- The results of the study revealed that 53.71% of the respondents make use of the intuitions when evaluating ...

Research paper thumbnail of Business Forecasting, Profitability & Cash Flow Management