This paper focuses on examining the effect of government external debt on economic growth, invest... more This paper focuses on examining the effect of government external debt on economic growth, investigating the effect of interest rate on economic growth, establishing the effect of government domestic debt on economic growth, and examining the effect of budget deficit on economic growth. The study was carried out for three East African countries, Kenya, Tanzania and Uganda, over the study period of 1980-2019. Autoregressive Distributed Lag (ADL) Panel Approach was used to specifically establish the effect of government external debt, interest rate, government domestic debt, and budget deficit on economic growth. Pooled Mean Estimator (PMG) was used to estimate both the general and full sample model. The results showed that in the long run, government external debt and interest rate had negative but not statistically significant effect on economic growth for the three countries. On the other hand, government domestic debt and budget deficit had positive effect but not statistically si...
European Journal of Business and Management Research
The nature of the funding source a commercial bank decides to adopt is a key performance determin... more The nature of the funding source a commercial bank decides to adopt is a key performance determinant. Ideally, banks make use of either shareholders’ equity, borrowed funds, or customers' deposits to finance their operations. The liberalization in the sector has made it possible for many players to exist and as a result, each player has had to come up with a unique competitive way that allows them to attract and retain the best funding sources capable of yielding positive performance. Much as there are studies that have sought to investigate the concept of funding and performance among commercial banks, both in developing and developed economies, the studies yield mixed findings. This study sought to determine the mediating effect of the bank’s competitiveness on the relationship between funding sources and performance. A descriptive research design was adopted and used to evaluate the two hypotheses formulated for each of the study’s objectives. Secondary data obtained from 35 ...
Purpose - The chief objective of this management research study was to determine the effect of co... more Purpose - The chief objective of this management research study was to determine the effect of county audit committees on the performance of county governments in Kenya. Methodology - This management research paper was based on a conceptual framework that elaborates this relationship theoretically based on the exploratory empirical studies. This management research paper uses three theories as the anchoring theories based on the research variables of county audit committees and performance. Thus, this research paper built an all-inclusive structure that answers the research question of whether county audit committees had an effect on the county government performance in Kenya. The study uses a purposive judgement sampling model. The target population was all 47 county governments in Kenya and the county audit committees was the preferred unit of analysis. Hypotheses were tested using regression analysis and Pearson’s Product Moment Correlation analysis. Descriptive statistics were c...
The study examined the impact of government debt on economic growth through extensive review of r... more The study examined the impact of government debt on economic growth through extensive review of relevant theoretical and empirical literature. Governments borrow to cover budget deficits. The debt is obtained either from the domestic market or from external sources. Government debt by Greece proved to be bad for the economy while government debt by USA which has the highest debt in the world proved to be manageable. This led to the need to examine the impact of government debt on economic growth in Kenya. The major theories examined included Adolph Wagner’s law of increasing state activity, the debt overhang theory, crowding out theory and the Ricardian equivalence theory. The main objective of the critical literature review was to review the literature done on the impact of government debt on economic growth while the specific objectives were to examine the impact of government debt on economic growth, to investigate the effects of macroeconomic variables on the relationship betwee...
The purpose of the study was to establish the effect of corporate governance and capital structur... more The purpose of the study was to establish the effect of corporate governance and capital structure on performance of firms listed at the East African community securities exchange. Specifically the study sought to establish the effect of capital structure on the relationship between corporate governance and firm performance of listed companies in Kenya, Tanzania,
The purpose of the paper is to examine the effect of demographic diversity in Top Management Team... more The purpose of the paper is to examine the effect of demographic diversity in Top Management Team (TMT) on financial reporting quality in commercial state corporations. The study adopted correlational and longitudinal research design and stepwise regression analysis of FRQ variables on a set of demographic diversity variables in TMT. The findings provide considerable evidence to suggest that TMT demographic diversity are associated with financial reporting quality measured by fundamental qualitative characteristics of accounting information, earnings management, timeliness in reporting and disclosure quality. The research implication is that; in general, demographic diversity in TMT-gender, age, education, tenure and functional background may have important implication for financial reporting quality under different measures. The value of this paper is to extend Prior research by addressing the potential effects of TMT demographic diversity on FRQ. The findings reported in this pape...
In the absence of agency conflicts, firm management can pursue investments that maximize sharehol... more In the absence of agency conflicts, firm management can pursue investments that maximize shareholders wealth. This paper sought to establish the mediating effect of agency costs on relationship between ownership structure and value of companies listed at the Nairobi Securities Exchange. The study population consisted of 64 listed firms as at 31st December 2017. Generalized least squares estimator was fitted for the analysis. The findings reveal that managerial ownership transmit a negative influence onto value of the firm through managerial discretionary expenses utilization. On the contrast, foreign ownership transmit a positive influence on the value of listed firms through efficacy in the utilization of managerial discretionary expenses. Institutional ownership enhance value directly but not indirectly via application of managerial expenses. The findings extend predictions beyond the direct link between ownership and firm value. The study support contemporary practices in corpora...
Purpose: SMEs have been recognized as being great contributors to the Kenyan economy offering bot... more Purpose: SMEs have been recognized as being great contributors to the Kenyan economy offering both employment and a platform for innovative ideas. They form a larger percentage of the businesses that operate in Kenya as compared to their counterpart, the large companies. They are however faced with many constraints that hinder their performance and consequently their growth. One of the main constraints that have been highlighted over the years is the financial constraint. The need for finance is of paramount importance for the success of any firm, be it big or small. The purpose of this research was to investigate the effect of credit access on financial performance of SMEs in Nairobi County. Methodology: The literature explored in this research highlight three main factors, namely firm size, loan amounts, access to credit and financial performance. These form the independent variables in the theoretical framework that influence the dependent variable, that is, access to external fu...
Purpose: The study investigates the relationship between macroeconomic variables and capital stru... more Purpose: The study investigates the relationship between macroeconomic variables and capital structure decisions of nonfinancial firms listed at the Nairobi Securities Exchange, in Kenya. Methodology: The study uses an unbalanced secondary panel data consisting of 36 nonfinancial firms listed at the Nairobi Securities Exchange (NSE) for the period 2015 to 2019 as at December 31st 2019. The sample selection was guided by data availability. The sectors excluded consisted of firms in banking, insurance, equity investment and real estate, including investment trusts. These exclusions were motivated by regulatory differences and for the ease of comparability of findings. Findings: The relationship between macroeconomic variables capital structure decision was found to be positive. This means that macroeconomic variables are determinant of capital structure decisions which supports the notion of trade-off theory and Pecking order theory as they advocate that firms should use debt to finan...
The study provides a test of the relationship between investment in Corporate Social Responsibili... more The study provides a test of the relationship between investment in Corporate Social Responsibility and sustained growth of commercial banks in Nairobi County- Kenya. The study used the Regression analysis technique to estimate the coefficients α,and β, in the function; Y= α + β X where Y was the sustained growth indicator and X was amount funds spent in CSR. The predictive simple regression model was subjected to a sample of 13 commercial banks over a period of five years (2006-2010). The study revealed that 11.0% of banks’ sustained growth can be explained by investing in CSR activities. This implies that there exists a positive relationship between investment in CSR and banks’ sustained growth. It was evident from the study that banks’ management can use investment in CSR activities to create a platform for improvement on their brand value, promotion and enhance social insurance. The study used a cross sectional survey design.
Budgeting process and internal control are essential components of the financial management of an... more Budgeting process and internal control are essential components of the financial management of an organization. The study sought to establish the intervening effect of internal control on the relationship between budgeting process and performance of Churches. Study findings have reported conflicting findings on the effectiveness of budgeting process and internal controls in Churches. Little attention has been paid to internal control as an intervening variable to budgeting process and performance of religious organizations such as Churches. Furthermore, not many studies linked budgeting process and internal controls to the performance of churches, and none combined the three variables in one study. It was hypothesized that there is no intervening effect of internal controls on the relationship between budgeting process and performance of Churches in Kenya. The study used positivistic research design and descriptive design. Collected data from 104 Churches in Kenya were analyzed usin...
Purpose – The purpose of the study was to assess the factors determining the financing of private... more Purpose – The purpose of the study was to assess the factors determining the financing of private finance initiative projects specifically road construction projects in Kenya Methodology - Across-section survey research design was used in the study. Questionnaire was used as instrument for data collection. Quantitative data were analyzed using both inferential and descriptive statistics while the qualitative data were analyzed thematically. Inferential statistics such as regression and correlation analysis were used in analyzing the association between the study variables. Pie charts, bar graphs and tables were then used to present the analyzed data. Findings – The study found that 69.3% of the variations on financing for private finance initiatives can be explained by project characteristics, government attributes, political environment and economic environment. This is also an indication that the variables tested were very strong determinants of the financing of the road projects ...
This paper focuses on examining the effect of government external debt on economic growth, invest... more This paper focuses on examining the effect of government external debt on economic growth, investigating the effect of interest rate on economic growth, establishing the effect of government domestic debt on economic growth, and examining the effect of budget deficit on economic growth. The study was carried out for three East African countries, Kenya, Tanzania and Uganda, over the study period of 1980-2019. Autoregressive Distributed Lag (ADL) Panel Approach was used to specifically establish the effect of government external debt, interest rate, government domestic debt, and budget deficit on economic growth. Pooled Mean Estimator (PMG) was used to estimate both the general and full sample model. The results showed that in the long run, government external debt and interest rate had negative but not statistically significant effect on economic growth for the three countries. On the other hand, government domestic debt and budget deficit had positive effect but not statistically si...
European Journal of Business and Management Research
The nature of the funding source a commercial bank decides to adopt is a key performance determin... more The nature of the funding source a commercial bank decides to adopt is a key performance determinant. Ideally, banks make use of either shareholders’ equity, borrowed funds, or customers' deposits to finance their operations. The liberalization in the sector has made it possible for many players to exist and as a result, each player has had to come up with a unique competitive way that allows them to attract and retain the best funding sources capable of yielding positive performance. Much as there are studies that have sought to investigate the concept of funding and performance among commercial banks, both in developing and developed economies, the studies yield mixed findings. This study sought to determine the mediating effect of the bank’s competitiveness on the relationship between funding sources and performance. A descriptive research design was adopted and used to evaluate the two hypotheses formulated for each of the study’s objectives. Secondary data obtained from 35 ...
Purpose - The chief objective of this management research study was to determine the effect of co... more Purpose - The chief objective of this management research study was to determine the effect of county audit committees on the performance of county governments in Kenya. Methodology - This management research paper was based on a conceptual framework that elaborates this relationship theoretically based on the exploratory empirical studies. This management research paper uses three theories as the anchoring theories based on the research variables of county audit committees and performance. Thus, this research paper built an all-inclusive structure that answers the research question of whether county audit committees had an effect on the county government performance in Kenya. The study uses a purposive judgement sampling model. The target population was all 47 county governments in Kenya and the county audit committees was the preferred unit of analysis. Hypotheses were tested using regression analysis and Pearson’s Product Moment Correlation analysis. Descriptive statistics were c...
The study examined the impact of government debt on economic growth through extensive review of r... more The study examined the impact of government debt on economic growth through extensive review of relevant theoretical and empirical literature. Governments borrow to cover budget deficits. The debt is obtained either from the domestic market or from external sources. Government debt by Greece proved to be bad for the economy while government debt by USA which has the highest debt in the world proved to be manageable. This led to the need to examine the impact of government debt on economic growth in Kenya. The major theories examined included Adolph Wagner’s law of increasing state activity, the debt overhang theory, crowding out theory and the Ricardian equivalence theory. The main objective of the critical literature review was to review the literature done on the impact of government debt on economic growth while the specific objectives were to examine the impact of government debt on economic growth, to investigate the effects of macroeconomic variables on the relationship betwee...
The purpose of the study was to establish the effect of corporate governance and capital structur... more The purpose of the study was to establish the effect of corporate governance and capital structure on performance of firms listed at the East African community securities exchange. Specifically the study sought to establish the effect of capital structure on the relationship between corporate governance and firm performance of listed companies in Kenya, Tanzania,
The purpose of the paper is to examine the effect of demographic diversity in Top Management Team... more The purpose of the paper is to examine the effect of demographic diversity in Top Management Team (TMT) on financial reporting quality in commercial state corporations. The study adopted correlational and longitudinal research design and stepwise regression analysis of FRQ variables on a set of demographic diversity variables in TMT. The findings provide considerable evidence to suggest that TMT demographic diversity are associated with financial reporting quality measured by fundamental qualitative characteristics of accounting information, earnings management, timeliness in reporting and disclosure quality. The research implication is that; in general, demographic diversity in TMT-gender, age, education, tenure and functional background may have important implication for financial reporting quality under different measures. The value of this paper is to extend Prior research by addressing the potential effects of TMT demographic diversity on FRQ. The findings reported in this pape...
In the absence of agency conflicts, firm management can pursue investments that maximize sharehol... more In the absence of agency conflicts, firm management can pursue investments that maximize shareholders wealth. This paper sought to establish the mediating effect of agency costs on relationship between ownership structure and value of companies listed at the Nairobi Securities Exchange. The study population consisted of 64 listed firms as at 31st December 2017. Generalized least squares estimator was fitted for the analysis. The findings reveal that managerial ownership transmit a negative influence onto value of the firm through managerial discretionary expenses utilization. On the contrast, foreign ownership transmit a positive influence on the value of listed firms through efficacy in the utilization of managerial discretionary expenses. Institutional ownership enhance value directly but not indirectly via application of managerial expenses. The findings extend predictions beyond the direct link between ownership and firm value. The study support contemporary practices in corpora...
Purpose: SMEs have been recognized as being great contributors to the Kenyan economy offering bot... more Purpose: SMEs have been recognized as being great contributors to the Kenyan economy offering both employment and a platform for innovative ideas. They form a larger percentage of the businesses that operate in Kenya as compared to their counterpart, the large companies. They are however faced with many constraints that hinder their performance and consequently their growth. One of the main constraints that have been highlighted over the years is the financial constraint. The need for finance is of paramount importance for the success of any firm, be it big or small. The purpose of this research was to investigate the effect of credit access on financial performance of SMEs in Nairobi County. Methodology: The literature explored in this research highlight three main factors, namely firm size, loan amounts, access to credit and financial performance. These form the independent variables in the theoretical framework that influence the dependent variable, that is, access to external fu...
Purpose: The study investigates the relationship between macroeconomic variables and capital stru... more Purpose: The study investigates the relationship between macroeconomic variables and capital structure decisions of nonfinancial firms listed at the Nairobi Securities Exchange, in Kenya. Methodology: The study uses an unbalanced secondary panel data consisting of 36 nonfinancial firms listed at the Nairobi Securities Exchange (NSE) for the period 2015 to 2019 as at December 31st 2019. The sample selection was guided by data availability. The sectors excluded consisted of firms in banking, insurance, equity investment and real estate, including investment trusts. These exclusions were motivated by regulatory differences and for the ease of comparability of findings. Findings: The relationship between macroeconomic variables capital structure decision was found to be positive. This means that macroeconomic variables are determinant of capital structure decisions which supports the notion of trade-off theory and Pecking order theory as they advocate that firms should use debt to finan...
The study provides a test of the relationship between investment in Corporate Social Responsibili... more The study provides a test of the relationship between investment in Corporate Social Responsibility and sustained growth of commercial banks in Nairobi County- Kenya. The study used the Regression analysis technique to estimate the coefficients α,and β, in the function; Y= α + β X where Y was the sustained growth indicator and X was amount funds spent in CSR. The predictive simple regression model was subjected to a sample of 13 commercial banks over a period of five years (2006-2010). The study revealed that 11.0% of banks’ sustained growth can be explained by investing in CSR activities. This implies that there exists a positive relationship between investment in CSR and banks’ sustained growth. It was evident from the study that banks’ management can use investment in CSR activities to create a platform for improvement on their brand value, promotion and enhance social insurance. The study used a cross sectional survey design.
Budgeting process and internal control are essential components of the financial management of an... more Budgeting process and internal control are essential components of the financial management of an organization. The study sought to establish the intervening effect of internal control on the relationship between budgeting process and performance of Churches. Study findings have reported conflicting findings on the effectiveness of budgeting process and internal controls in Churches. Little attention has been paid to internal control as an intervening variable to budgeting process and performance of religious organizations such as Churches. Furthermore, not many studies linked budgeting process and internal controls to the performance of churches, and none combined the three variables in one study. It was hypothesized that there is no intervening effect of internal controls on the relationship between budgeting process and performance of Churches in Kenya. The study used positivistic research design and descriptive design. Collected data from 104 Churches in Kenya were analyzed usin...
Purpose – The purpose of the study was to assess the factors determining the financing of private... more Purpose – The purpose of the study was to assess the factors determining the financing of private finance initiative projects specifically road construction projects in Kenya Methodology - Across-section survey research design was used in the study. Questionnaire was used as instrument for data collection. Quantitative data were analyzed using both inferential and descriptive statistics while the qualitative data were analyzed thematically. Inferential statistics such as regression and correlation analysis were used in analyzing the association between the study variables. Pie charts, bar graphs and tables were then used to present the analyzed data. Findings – The study found that 69.3% of the variations on financing for private finance initiatives can be explained by project characteristics, government attributes, political environment and economic environment. This is also an indication that the variables tested were very strong determinants of the financing of the road projects ...
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Papers by Kennedy Okiro