Kenya Methodist University crestKENYA METHODIST UNIVERSITYDigital Repository
 

Master of Business Administration

Permanent URI for this collectionhttp://41.89.31.6:4000/handle/123456789/55

Welcome to Department of Business Administration collection>

Browse

Filters

20132

Settings

End date: 2019Subject: search.filters.subject.Financial performance

Search Results

Now showing 1 - 2 of 2
  • Thumbnail Image
    Item
    Analysis of the Relationship between Corporate Governance of Banks in Kenya. A Survey of Selected Banks in Kenya
    (KeMU, 2013-06) Mwebia, Kendi Doris
    The corporate governance function is intended to develop ownership structures and corporate governance structures for companies to ensure managers behave ethically and make decisions that benefit shareholders. Many firms have been faced by the challenge of corporate governance that has led to collapse out poor financial performance. The study basically was meant to find out relationship that exists between corporate governance and financial performance of banks in Kenya and various variables are going to be examined that includes, Directors' ownership, Board size, Board Composition and ownership of the banks. Literature has been reviewed on various theories concerning corporate governance that includes agency theory, stewardship theory, stakeholder's theory, Resource dependency theory and transaction cost economics. Various studies have been carried out in the past by other researchers and that is captured in the empirical review of this study. Descriptive research design was applied, and population of the study consists of 20 banks selected from various categories i.e. banks that are locally owned, foreign owned and those that are listed in Nairobi securities exchange. The researcher used purposive sampling. That was done since there was specific information that the researcher wanted and that could only be gotten from specific persons in the organization. Data was collected by use of questioners that covered all questions drawn from all variables of study. Type of data that was used was primary. The data that was collected was analyzed by use of multi-linear regression. The entire research finding provided information that there is a significant relationship between corporate governance practices and financial performance. These factors have made the organizations to properly and effectively manage and observe their financial performances. The extent of board size on financial performances affects financial performances to a great extent, as the number of directors based on activities involved in the bank and also contribution in decision making influences the performances. Also having more directors on the board improves financial performance and improved firm financial performance through proper management involvement and budget allocations. The study recommends that the board size and composition be considered since they affect the financial' performance of the banks. The number of non-executive directors needs to be selected well since they affect financial performance of the bank as compared to those who are executive directors. Further the study recommends that directors' participation in direct corporate governance mechanisms as this will help the entire bank performances.
  • Thumbnail Image
    Item
    Analysis of the Effect of Capital Structure on Financial Performance. A Survey of All Firms Listed at the Nairobi Securities Exchange
    (KeMU, 2013-06) Kinyariro, Kamau Dickson
    Every company requires funds to meet its financial obligations. In Kenya, the most common sources of funds that are available to companies are shareholders' equity and debt. An optimal combination of debt and equity increases a company's earnings consequently leading to better performance. Shareholders invest in shares with the hope of receiving income in form of dividends, capital gains or bonus issues while lenders expect their money to be repaid in time and conveniently. Many companies listed at the Nairobi Stock Exchange (NSE) however, often face the challenge of reaching the optimal capital structure. The objective of the research was to find out the role of capital structure on the performance of all listed companies, whether high level of debt or equity in the capital structure contributes to positive or negative performance. This thesis also contain data analysis, presentation and interpretation summary of findings, conclusions and recommendations The findings from the study can help interested investors and owners in predicting the likely implications of capital structure decisions on companies in regard to performance. The study can also close the gap in the existing body of knowledge since not much has been done in this area. The study covered companies listed at the exchange. The results also reflect the current position. Secondary and primary data from 57 companies have been used. Financial statements for a period of 3 years 2009-2012 have been used for analysis of secondary data. Narrative interpretation and description have been used to present both qualitative and qualitative results.