Department of Economics
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Item The Effect of Credit Management Techniques on Financial Performance of Non-Deposit Taking Saccos in Nairobi(University of Embu, 2019) Muloki, Titus KilundoThe study will be aimed at assessing the influence of credit risk management on financial performance of non-deposit taking SACCOs in Nairobi. The study will be guided by this research objective. The study adopted descriptive research design and the population consist or shareholders or the non- deposit taking SACCOs in Nairobi. Questionnaire was used to collect data and correlation of credit limits of the Sacco's member and interest set by financial institutions. The study is expected to reveal whether there exists a relationship between credit risk controls and financial performance of the SACCOs. If the study concludes that credit risk management influence financial performance of the Saccos it will recommend adoption of more stringent policy on credit risk management of the Sacco for effective performance of the SACCOs.Item Role of Cost Accounting in Pricing of Manufacturing Companies; Case Study Jumbo Nut Company(University of Embu, 2019) Wamiro, SimonThe purpose ofthis study was to determine the role of cost accounting in pricing in manufacturing company. l The study also sought to inefestigate how manufacturing company uses their method on pricing their products. A case study was done on a jumbo nut company in Embu. Data was collected on a qualitative approach where questionnaires were collected. The researcher has used both descriptive and analytical methods which suit the nature of the present study which is mostly based on field work and the theoretical underpinnings. A group of previous studies related to the subject of the 'study have been utilized in the construction of study tools (questionnaires) which have been distributed in the industrial companies in the jumbo nut company. The study targeted accounting costs, accountants, auditors and managers of financial departments in industrial companies. The results indicate that the cost of the accounting system applied in industrial companies provides quality accounting information; there is an impact of this information on the pricing decision-making; there are areas in which pricing decisions much depend on the information provided by the cost accounting systems. This study contributes to the literature by providing an analysis of the role of cost information in pricing decisions within industrial companies in Kenya.Item Factor Affecting Procurement Performance in County Government: A case study of Embu County Government(University of Embu, 2019) Njoroge, Juliet WambuiPublic procurement has evenly become the conspicuous iii both private and public sector. The purpose of this research project was to identify the factors 'affecting' procurement performance in Embu County Government. The research study focused on some objectives which were: to determine the extent to which work team competency affects the procurement performance in Embu county government, to determine how information technology affect the procurement performance of Embu county government, assess how the ethical issues will affect the procurement performance of Embu county government. The theoretical literature review with the adaptive structural theory, the human capital theory and the institutional theory review and gaps were well elaborated.Questionnaire were used to collect data and were administered through drop and pick method. Also interview with few employees was used as a way of data collection. The population target was roughly of 150 employees. Sequence of random sampling was used to ensure reduction of the target population to a sample size that was manageable and easy to workItem The Effects of Microcredit Program on the Performance of Women Owned Enterprises in Embu County(University of Embu, 2019) Musyoki, Jescar KaswiiThe key objective of the MTP for the financial sector is to mobilize savings to realize a savings to GDP ratio of 25% - 28 % as envisaged into the macroeconomic framework underpinning the vision 2030. This will have sustained an increase in the ratio of investment to GDP of around 30% - 32% with growing amount of resources channeled to support agriculture, manufacturing and other key sectors identified under vision 2030 including lending to Micro, Small and Medium Enterprises (MSMEs). This will further the government's policy objective under the ERS, which articulates to improve access to financial services for a large number of Kenyans household and small enterprises, greater efficiency in delivery financial services and ensure the chances of financial crisis are kept to minimum. Microcredit has huge impact as proposed by the government on lives of millions of people particularly women. The study investigated importance contributions made by microcredit on the performance women owned enterprises by determining the influence of financial knowledge on the performance of micro women enterprises and evaluating the return on the assets m terms of profit generated after the investment in Embu County. The study describes the need of microcredit activity and investigates the impacts of microcredit to the poor people in the society with the main focus on the women owned enterprises in the Embu County. The research was concised through client's (The poor people who borrow from the Microfinance Institutions) perspectives and build up the research based on questionnaire, survey interviews and field observations. Therefore, the main objective of this study is to show how microcredit works to improve the quality of poor women residence and reduce unemployment level and how it affects the living standards (Income, Saving and Asset ownership) of the poor people especially women in Embu CountyItem Effect of Creative Accounting on Shareholders Wealth in Listed Public Companies in Kenya(University of Embu, 2019) Njoroge, Monica W.The purpose of this study is to determine the effect that creative accounting has on shareholders' wealth among companies listed on NSE. Creative accounting practices are attributed and treated to bad corporate governance. It is carried out with an objective of making the company appear to be more financially stronger or weaker depending on the managements' aspirations. Accountants use strategies that enhance the picture of the organization using profit eroding mechanisms which lead to drastic consequences. These consequences include corporate failure both locally and internationally as in the case of WorldCom and Enron. In Kenya most companies are overĀ reporting their financial position and performance to meet the targets of the demanding shareholders. There has been corporate failure which has become a major issue with respect to firms all over.the world which has been caused by excessive practice of creative accounting. The study considered tax avoidance, accelerated depreciation and income smoothing as part of the major creative accounting practices that influence financial performance of public limited firms. Secondary data was extracted from the annual financial reports for the respondent companies, NSE database, journals and other publications. Data was arranged and grouped according to the research questions. The researcher analyzed the financial statements of the selected firms so as to establish discretionary accruals which are one indicators of creative accounting. The researcher carried out regression analysis to test the relationship between the independent variable (shareholders' wealth) and the dependent variable (creative accounting) on listed companies at the NSE in Kenya. SPSS (Statistical Package for Social Sciences) Version 16.0 was one of the model to be used to analyze and measure data by the use of standard deviations, central tendencies and percentages. The study recommends that local investors should embrace shareholder value concept as an excellent model for value creation to increa e insider trading meant to boost investor confidence and sense of security as guaranteed by mutual interests in growth of shareholder value. Further research should be carried out on other employees who could be involved in creative accounting therefore indirectly affecting shareholders' wealth. The limitation of the study was that it was carried out under a tight schedule. It was undertaken within a short time and was carried out while having lectures and private studies.Item The Effectiveness oIntegrated Computerized Accounting Systems on the Internal Controls of Supermakets in Embu County, Kenya.(University of Embu, 2019) Loyara, Hosea KropIntegrated computerized accounting systems (ICAS) faces the challenges of unauthorized acces , alterations and destruction of data thus compromising the confidentiality, integrity and availability of financial information. The research evaluated the effectiveness of integrated computerized accounting systems (ICAS) on internal controls (IC) of supermarkets in Embu County, Kenya. The objectives of the study were; to determine the effect of integrated financial operations on tpe internal controls of supermarkets in Embu County, to determine the effect of segments information on the internal controls of supermarkets in Embu County. The findings of the study are helpful to managers of supermarkets in acquiring the ICAS to strengthen the internal controls, developers of accounting software's in programming software that meets the needs of the supermarkets and future researchers as it forms the basis of future researches. The study used descriptive survey designs that were conducted among 50 out of the 70 targeted branch managers, supervisors and attendance, cashiers and directors of the supermarkets in Embu County a composition county with branches of all major supermarkets in Kenya. The targets population was the seven supermarkets in Embu County. A census method was used comprising of all the 50 branch managers, directors, supervisors, attendance and cashiers. Closed ended questionnaire were used to collect data from the supermarkets in Embu County where only six supermarkets responded. The data was analyzed through Likert scale, descriptive and inferential statistics with the aid of Statistical Package for Social Sciences (SPSS) version 22.0 and presented using tables & figures. Descriptive methods used were mean and standard deviation. The inferential statistics used include multivariate regression analysis to test the model fit and correlation analysis. The findings of the study showed that integrated financial operations and computerized integrated accounting are positively significant on strengthening the internal controls while segment information is negatively significant on strengthening the internal control system.Item Effect of Internal Control Systems on Fraud Prevention in Commercial Banks in Embu County(University of Embu, 2019) Mathenge, Leah WanjikuEffective Internal control systems are critical component of company management and a foundation for safe and sound operation of organizations. Proper internal controls help the organization tc1 achieve its goals and objectives. Sound financial management practices require the institutions or organization to have strong internal control systems. There have been related studies about the relationship between internal control systems and fraud prevention but there are limited empirical research finding and also lack of mutual understanding with regards to the effectiveness of internal controls on fraud prevention. commercial banks, there have been a lot of weaknesses in their policies and procedures and also in their Internal Audit, the extent to which employee's in positions handling cash fail to take regular leave and lack of rotation of empl'oyees handling very sensitive areas of finance. This leads to increased levels of fraud and misappropriation of funds. In this regard the study seeks to assess the effectiveness of internal control systems on fraud prevention in Embu County. The specific objectives are three that is; effects of internal audit on fraud prevention, effects of internal control quality on fraud prevention and effects of segregation of duties on fraud prevention. The scope of the study was limited to commercial banks located in Embu County and the population was the employees in the banks. The study employed census in carrying out the research because the population was small and therefore the population, which is 13 banks in Embu was our target population. The sample size was 39 employees which included three employees from each bank that is the internal auditor, finance manager and bank manager. Descriptive research design was adopted and quantitative design was used to generate numerical data. The primary data collection method was used in collecting information through use of a questionnaire. The collected data was then analyzed using descriptive statistics using SPSS version 20 and presented through percentages, means, standards deviations and frequencies. The findings were presented in form of frequency tables and figures. Pie charts and bar graphs were used for data presentation.Item Effects of Internal Controls on Financial Performance of Commercial Banks in Embu County(University of Embu, 2019) Chebet, Betty