Masters Candidates

Research Topic:
THE EFFECT OF DEBT FINANCING ON DIVIDEND POLICY OF MANUFACTURING AND COMMERCIAL SECTOR FIRMS LISTED AT NAIROBI SECURITIES EXCHANGE
wanje
Abstract:

Financing decisions involve how the company’s source of funds which may be through debt or equity financing while investment decisions revolve around how the sourced funds are invested in profitable ventures for expansions and growth while dividend decisions entail the generated profits are distributed among the shareholders. The study sought to determine the effects dividend policy on debt financing as described by dividend payout ratio of commercial and service sector firms and manufacturing and allied sector firms listed at the Nairobi Securities Exchange between 2009 and 2018. The population of the study was all the twenty (20) Commercial and Service & Manufacturing and allied Sector firms listed at Nairobi Security Exchange. The dependent variable is Dividend Payout ratio measured by dividend per share divided by earning per share while independent variables are; debt financing as measured by debt ratio, firm size, liquidity, and profitability. The study employed descriptive research design and a multiple linier regression model that used secondary quantitative data from comprehensive financial statements of sampled Commercial and Service & Manufacturing and Allied Sector companies quoted at Nairobi Security Exchange. The study findings concludes that a positive relationship does exist. The study findings do not concur with studies by Brealey and Myers (2000) and Asif, et all. (2011) Atipo (2013) and Ambuko (2014), Lucy (2016) who purported that a negative association exists between financial leverage and dividend policies adopted by companies. The study recommends that when firms are setting their capital structure they should do so keeping in mind a balance between the tax saving benefits of debt and bankruptcy costs associated with borrowing. The study’s limitations is on use of secondary data with high probability of impairment of company reporting, time constraints and using few samples from selected quoted companies.

Research Topic:
EFFECT OF EARNINGS MANAGEMENT ON STOCK RETURNS OF COMPANIES LISTED AT THE NAIROBI SECURITIES EXCHANGE.
kab
Abstract:

Shareholders’ wealth maximization is the primary objective of any firm. Earnings management is a major corporate issue and is therefore no exception, most studies have reported the negative side of earnings management, and other studies differ from the argument by suggesting that earnings management can be practiced in a positive way. This study aims to ascertain the effect of earnings management on stock returns of firms quoted at the NSE. The population study was all the 63 companies quoted at the NSE. The independent variables were earnings management represented by discretionary accruals, capital structure represented by debt ratio, liquidity represented by current ratio, firm size represented by natural logarithm of total assets and management efficiency represented by the ratio of total revenue to total operating expenses. Stock return was the dependent variable and was represented by change in share price plus any dividend issued during the period. Secondary data was collected from January 2014 to December 2018 annually. Research design was descriptive cross-sectional design, multiple linear regression was applied in determining the relationship between the variables. SPPS software analyzed data.

From analysis, R-square value of 0.245 was produced meaning 24.5% of the changes in the stock returns of NSE listed firms can be described by the independent variables studied and 75.5% in the changes in stock returns is affiliated to other variables outside the scope of this study. Also, independent variables of this study are moderately correlated with the stock returns (R=0.495). ANOVA outcomes revealed that the F statistic was significant at 5% level with a p=0.000. Henceforth, the model was appropriate in explaining the association between the selected variables.

Research Topic:
THE IMPACT OF FORENSIC ACCOUNTING PRACTICES ON FRAUD DETECTION AND PREVENTION AMONG DEPOSIT TAKING SACCOS IN NAIROBI COUNTY
arthur
Abstract:

The study’s objective was to establish the impact of Forensic accounting practices on fraud detection and prevention among Deposit taking SACCOs in Nairobi County. The study was guided by forensic accounting practices that comprised of litigation support, fraud investigation, and dispute resolution. Fraud Triangle theory, Rational Choice Theory, and Routine Activity Theory guided the study in building theoretical constructs. The population constituted of 42 deposit taking SACCOs that have been operational within Nairobi County as at December 2018. Census technique was applied to solicit data from the entire population since the population was relatively small and accessible. Analysis of collected data established that forensic accounting practices have a moderate and positive impact relation on fraud detection and prevention among deposit taking SACCOs in Nairobi County Litigation support has a statically significant relationship with fraud detection and prevention .The study established that fraud investigation and dispute resolution impacts fraud detection and prevention although the relationship was not statistically significant .The study recommends that Deposit Taking SACCOs in Nairobi County should leverage litigation support with a view of detecting and preventing fraud since the approach enhances discovery of information through document examination to unearth important facts, which will aid fraud detection and eventual prevention. Further research should be done to determine how other factors such as Strong Internal Controls, Fraud risk assessment strategy.

Research Topic:
FIRM TECHNOLOGY AND COMPETITIVE ADVANTAGE OF INSURANCE COMPANIES IN KENYA
mwas
Abstract:

The need to keep abreast of the ever-changing business environment to a digital economy, insurance firms need to utilize firm technology in order to keep up and gain a competitive edge. Emerging new firm technologies, globalization, changing consumer insurance needs have motivated changes in a firm's business practices or processes. Firm technology has provided new avenues for insurance firms to be more efficient and effective, its integration in the system has become its driving force for competitiveness. This study was motivated by the need to investigate how insurance companies in Kenya are striving in gaining a competitive advantage through the utilization of firm technology. It was grounded using Resource-based theory and Technology acceptance theory, and it targeted 48 licensed insurance companies of which 35 Operations Managers responded. Questionnaires were used in collecting primary, and a sample mean, standard deviations and regression analysis were utilized in analyzing data, as well as tables to present findings. It was established that insurance companies are striving to gain competitive edge by adopting firm technology in product innovation and service delivery despite the challenges from the ever-changing internal and external business. The findings were that the key impact for the use of firm technology was improved efficiency underwriting and claims process, facilitated valuable customer relationship management, enhanced research and development innovative, differentiated and market-driven insurance products based on client’s needs, proper auditing and sound investments. The study concludes existence of a positive and significant relation between insurance companies gaining competitive advantage in the market through adoption of various firm technology and recommends a firm`s management should continuously adopt new emerging technologies and staff training.

Research Topic:
EFFECT OF PUBLIC DEBT ON ECONOMIC GROWTH IN KENYA
obiero
Abstract:

The outcome of public debate on economic growth is a debatable issue amid scholars since the onset of debt crisis in 1980s. Public debt is one of the remaining macros economic indicators, which forms countries image in international markets. It is one of the inward foreign direct investment flow determinants. A prudent public debt management helps economic growth and stability through immobilizing resources with low borrowing cost and limiting financial risk exposure. Kenya being a developing country has depended profoundly on public debts, grants and foreign aid over the years. A high level of debt in Kenya poses a great challenge for the economy because large portion of revenues is devoted to servicing the debt instead of being put into domestic investment, thus reducing the prospects of economic growth .As a result, an increase in real interest rate, inflation, unemployment high exchange rate and t debt service and payment difficulties due to the considerable increase in the level of public debt in Kenya has been noted. Besides, funds are being diverted to repaying the debt at the expense of economic development and domestic consumption.

Research Topic:
Entrepreneurial Orientations and Sustainability of Water Business in Nairobi County.
Singoei
Abstract:

The study aimed at determining the level of sustainability of water business in Nairobi
County, Kenya and establishing the effect of entrepreneurial orientation on sustainability of
water business in Nairobi County, Kenya. The study was informed by the social cultural
theory of entrepreneurship and Schumpeter’s theory of innovation. The study used a
descriptive research design. The target population was all the 33 water firms in Nairobi. The
unit of study was the managing directors of the firms. The study was a census of all the water
firm in Nairobi. Purposive sampling was used to select the study participant, that is, the
managing directors. The study used primary data which was collected by use of structured
questionnaires. Secondary data was also collected on sustainability of water businesses in
Nairobi. The Statistical Package for Social Sciences (SPSS) software version 20.0 was used
to carry data analysis. Descriptive as well as inferential statistics were used in the study. The
descriptive statistics included frequencies, percentages, means and standard deviations.
Inferential statistics included Correlation and regression analysis which were used to show
the relationship between the dependent and independent variables. Findings were presented in
form of tables. The study found that innovativeness, risk taking, competitive aggressiveness
and autonomy of the entrepreneur have a positive and significant influence on sustainability
of water businesses in Nairobi. The study concluded that innovativeness in entrepreneurship
affects the sustainability of water businesses. Adoption of innovative ways of marketing and
production can improve the performance of the business. It was recommended that water
businesses in Nairobi County devise ways and means of raising sufficient funds that can be
channelled to research and development of new innovative products in the water businesses.

Research Topic:
EFFECT OF CELEBRITY ENDORSEMENT ON CONSUMER PURCHASE INTENTION: A SURVEY OF CONSUMERS IN SELECTED SUPERMARKETS IN NAIROBI, KENYA
mach
Abstract:

Stiff competition in the marketing sectors and the related industries including product manufacturing have pushed companies to come up with newer approaches towards marketing to reach a greatest number of customers. One of the marketing strategies adopted by business entities is the use of celebrities to endorse their products and services. The objective of the study was to investigate the effect of celebrity endorsement on consumer purchase intention in selected supermarkets in Nairobi, Kenya. The dimensions of celebrity endorsement investigated were celebrity physical attractiveness, celebrity credibility/trustworthiness and celebrity expertise. The research adopted a descriptive research design with the questionnaire being the main data collection instrument. Data analysis was done based on 88 questionnaires that were duly filled and collected and the analysis was done using descriptive measures of mean and standard deviation. With regard to celebrity attractiveness, it was found that the capacity of product endorser being elegant to the consumer significantly affected consumer purchase intention, while for the credibility of the endorser their credibility was the dominant factors that affected consumer purchase intention. In addition, the celebrity skillfulness in the area that they are advertising increased the consumer purchase intention. The research recommended that product managers should direct their effort towards putting in efforts in enhancing endorser credibility because the perception of the consumers on the endorser credibility expertise on the field in which he advertises was found to have stronger effect on the consumer purchase intention.

Research Topic:
EFFECTS OF ACTUARIAL FUNCTION ON THE FINANCIAL PERFORMANCE OF PRIVATE HEALTH INSURANCE PROVIDERS IN KENYA
mo
Abstract:

The study sought to establish the effect of Actuarial Function on the financial performance of health insurance providers in Kenya. Actuarial function is a fulfilment of the requirement of EU, article 48 of the Solvency II Directive. International Association of Insurance Supervisors (IAIS) describes actuarial function as a structure of operational and oversight controls focused on making technical provisions and expressing judgement on underwriting policy and reinsurance arrangement (IAIS, 2015).  The study first established whether health insurance firms had adopted the actuarial function and the year of such establishment for each firm. Financial performance was measured using Underwriting Profit for medical business, Return on Assets (ROA) and Solvency. Financial data for 3 years pre and post adoption of each firm was obtained for the purpose of the study. The study population comprised of 21 insurance firms offering health insurance of which a census was carried out. The study used secondary data being the financial results for each company as published IRA. Dates of adopting actuarial function was obtained by calling head of actuarial function in each of the companies. From the data analysis, it was confirmed that the combination of the three indicators of firm performance (Return on Assets, solvency and Underwriting Profits) were significantly influenced by adoption of actuarial functions. Underwriting profit was strongly correlated to adoption of actuarial function.  The correlation coefficients establish some significant relationship between actuarial function and firm performance. The findings gives confidence to health insurance firms and policy makers to adopt actuarial function as a measure to improve firm performance. It would be recommended that insurance firms and stakeholders undertake a follow-up study to determine whether actuarial functions have significant influence on the financial performance.

Research Topic:
Strategic Responses and Organization Performance Among Commercial Banks in Kenya.
ger
Abstract:

The aim of the research was to determine the connection between strategic responses and organizational performance among Kenyan commercial banks. A descriptive cross-sectional design of research was employed. This was because it sought to show the relationship of different variables. 43 commercial banks made up the population of the research. The data was gathered from strategic and finance managers from the banks. Quantitative data was gathered by the use of semi-structured questionnaire. The gathered data was assessed to check for errors and completeness. A simple linear regression model was applied to assess the effect of strategic responses on organizational performance of commercial banks situated in Kenya. The research results highlighted that strategic responses led to improved financial performance as it is shown by an increase in profits, an increase in the return on assets and investments. Strategic responses also led to bank’s ability to cover its expenses and yield profits and gross profit margins for the commercial banks. The researcher suggests that existing and upcoming commercial banks ought to employ strategic responses in order to better their performance. Strategic managers should implement expansion strategies such as leveraging their existing resources and capabilities in order to remain competitive. More research ought to be conducted with regards to the impact of response strategies to transformations in technology to Kenyan commercial banks and strategies of expansion and their performance

Research Topic:
INFLUENCE OF CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE OF REGULATED SACCOS IN NAIROBI CITY COUNTY
caro
Abstract:

They are developed for the purposes of meeting financial needs and are aimed at bringing about justice and equitable distribution. However, they face various challenges such as is management of funds which has led to the closure of quite a number of them. This examination in this manner researched effect of corporate governance on money related issues in SACCOs in Nairobi City County. The free factors utilized were Size of the Board, duality of the CEO, Board expertise level and Board piece. The reliant variable was monetary execution. The discoveries of this examination will profit official individuals from SACCOs and other helpful social orders regarding improved execution. This examination applied elucidating study plan. It concentrated on 38 deposit taking SACCOs in Nairobi City County controlled by SASRA. Information was gathered through the poll. Information investigation was finished utilizing SPSS and the outcomes were introduced in plain structure to show illustrative and relapse examination. Size of the Board doesn’t disclose the productivity because of the way that the Sacco’s are overwhelmed by an enormous number of individuals; this suggests the greater part of Board enrolment is there to look for their own enthusiasm as opposed to scanning for the enthusiasm of Saccos which is bolstered by the office hypothesis. Board synthesis has indicated that it explains productivity.