Articles: Department of Economics
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Item Mediation Effect of Macro-Economic Factors on the Relationship between Banks’ Financial Soundness and Financial Performance(2020) Kirimi, Peter N.; Kariuki, Samuel N.; Ocharo, Kennedy N.Analyzing the effect of macro-economic factors is essential for business growth. The study analyzed mediation effect of macroeconomic factors on the relationship between financial soundness and financial performance of 39 commercial banks in Kenya using data from 2009 to 2018. The study was modeled on the theory of production with CAMEL variables as factor inputs and financial performance measures as factor outputs mediated by macro-economic factors. The study found that gross domestic product growth, interest rate, exchange rate and inflation had a mediating effect on the relationship between banks financial soundness and net interest margin. In addition, gross domestic product growth, interest rate and exchange rate were not mediators on the relationship between financial soundness and earnings per share as a financial performance measure. The study also established that exchange rate had mediation effect on the relationship between financial soundness and net interest margin and return on assets respectively. Further, inflation was found to have a positive mediation effect net interest margin, earnings per share and return on assets as measures of financial performance, there was absence of mediation effect when return on equity was used as financial performance measure. Bank management needs to understand the direction of the effect of mediation of macro-economic factors on banks’ financial soundness for effective financial soundness policy formulation to improve financial performance.Item Fintech, Asset Portfolio Modeling and Financial Performance of Investment Firms in Kenya(IDOSI Publications, 2021) Gitonga, Elizabeth N.; Kariuki, Peter W.; Kariuki, Samuel N.The purpose of this study is to determine the influence of fintech asset portfolio modeling on the financial performance of investment firms in Kenya. The study was guided by capital asset pricing model. Both descriptive and explanatory research designs were employed in this study. The study population was 57 investment firms. Data was collected using questionnaires and an in-depth interview guide. The use of robo advice, online asset visualization, use of passive investment funds in managing investment portfolios and asset management services have positive and significant relationship with performance of investment firms. However, automated trading has a positive but insignificant with performance of investment firms. However, personal financial management is negatively and significantly related with performance of investment firms. The study concluded that fintech asset portfolio in the management assets enhance financial performance; however, the services remain underdeveloped in some investment firms. The study thus recommends for the use of fintech asset portfolio in the management firms assets. Robo-advisors may help create an opportunity for asset managers looking for cheaper alternatives to receive advice on how to manage assets.Item The Effect of Accounting Techniques on Small Business Performances in Kenya, Case Study of Embu County(University of Embu, 2019) Lopusikamar, Boaz PkiyachThis research has been conducted at County of Embu to investigate the effect of accounting techniques on Small and Medium Enterprises (SMEs) performance in Kenya. Most SMEs in this County of Embu do not progress well due to various constraints, one of them being poor accounting records. Accurate accounting records enable the business to manage its finances and make good financial decisions which in tum improves the performance of the business, Data were collected through questionnaires. The findings in these County of Embu shows that most of SMEs do not keep accounting records. Some of the reasons as to why they do not keep accounting records were: time consuming. lack of knowledge and skills, poor documentation, ignorance and poor support from the workers responsible with records in the organizations. The research data were collected through questionnaires. The study recommends for the SMEs to attend entrepreneurship seminars and short courses whereby they will be able to gain knowledge on accounts record keeping. Public and private organizations should increase effort on SME sector, especially in educating members how to improve their business in case of performance which requires good accounting techniques.