School of Business & Economics (PT)http://repository.mut.ac.ke:8080/xmlui/handle/123456789/28752024-03-27T05:16:43Z2024-03-27T05:16:43ZEffect of Moderated Internal Audit Practices on Financial Performance of NSE-Listed Banks in KenyaMokono, Ruth Mwendehttp://repository.mut.ac.ke:8080/xmlui/handle/123456789/63972024-02-17T11:25:13Z2022-10-01T00:00:00ZEffect of Moderated Internal Audit Practices on Financial Performance of NSE-Listed Banks in Kenya
Mokono, Ruth Mwende
The application of ongoing financial management reforms seeks to enhance and improve the performance of various organizations. In the last decade, performance of Kenyan banks, in terms of rate of increase in profits before tax has been 20% below the industry average. The banks' capacity to improve this level of performance has proven to be an area of concern and therefore, banks have enhanced the use of internal audit practices. The research investigated the effect of moderated internal audit practices on the financial performance in the NSE listed banks in Kenya. The specific objectives of this study were to; analyze the effect of adoption of ISAs; evaluate the effect of independence of internal audit; assess the effect of audit committees’ operations; examine the effect of internal control systems on financial performance of NSE listed banks in Kenya; and to investigate the moderating effect of CBK regulations on the effect of internal audit practices and financial performance of NSE-listed banks in Kenya. The study was anchored on the attribution theory, and further supported by the contingency and agency theories. The research adopted descriptive and correlational research approaches. The regression and structural equation models were adopted. A census survey was used for the banks. Stratified sampling was done to identify the different departments in the listed banks, while purposeful sampling was applied to deduce a representation of the participant departments of 44. Questionnaires were used to collect the main data from the 11 NSElisted banks in Kenya, while data extraction techniques were used to obtain secondary data to collect data for financial performance from the CBK annual supervisory reports. Likert collected responses from questionnaires were analyzed while quantitative data analysis was deduced using both descriptive and inferential statistics. The research findings showed that independence and internal controls have a statistical effect on financial performance in Kenya's NSE-listed banks, while the unmoderated ISAS and the audit committee had no statistically significant effect. The R squared for the independent variables showed a good fit with relatively low values of ROA and ROE at 20.2% and 19.5% respectively. The F statistic was also significant for the two variables on independence and internal controls. The R squared for the CBK regulations moderating effect also showed a good fit with relatively high values of 76.2% and 61.1% respectively for ROA and ROE. It was also evident that the moderating effect of the CBK regulations affected the internal audit practices, and specifically the ISAs. Internal audit aids boards of directors in carrying out their governance responsibilities, resulting in enhanced performance and competitiveness. Corporate success and a well-governance structure are inextricably intertwined. This study therefore recommends the continuous adoption of ISAs and ensuring independence of internal audits to keep improving the NSE-listed bank’s financial performance. The internal auditors’ members should be hired on merit, receive regular training, and include a reporting channel identified that will protect independence and objectivity. Further, the study recommends that there should be policies to guide audit functions, remunerations and fees charged to improve NSE-listed banks performance. The study also recommends on adoption and employment of internal control systems. A recommendation to study other internal audit practices apart from these studied on the financial performance of the NSE-listed banks in Kenya is imperative and another field that can be explored.
Doctor of Philosophy in Business Administration (Finance Option), 2022
2022-10-01T00:00:00ZModerating Effect of Business Regulatory Requirements on The Effect of Firm Specific Factors on Financial Performance of Private Security Firms in KenyaKuria, Paul Kiariihttp://repository.mut.ac.ke:8080/xmlui/handle/123456789/63942024-02-17T11:21:09Z2022-10-01T00:00:00ZModerating Effect of Business Regulatory Requirements on The Effect of Firm Specific Factors on Financial Performance of Private Security Firms in Kenya
Kuria, Paul Kiarii
Even though Kenya enacted Private Security Regulatory Act of 2016, majority of private security companies have continued to operate without complying with the regulation thus inhibiting their performance. For private security firms to survive and thrive, they need to be provided with a friendly business climate. The research therefore investigated the effect of firm specific factors and business regulatory requirements on the financial performance of private security firms. The firm specific factors included firm’s financial aspects, entrepreneur’s attributes and firm’s characteristics, making the independent variables. In the study, business regulatory requirements were the moderating variables. Business regulatory requirements included finance access regulations and private security industry regulation. The research findings will be useful to various groups including academia, government and management of private security firms. The research was guided by public interest, credit access, scale efficiency, Miller- Orr model and social network theories. Further, the research was based on descriptive survey research design. The study population was 75 private security firms operating in Kenya forming the census with no sampling being carried out. The study made use of primary and secondary data with primary data being sourced using structured questionnaires. The instrument was taken through pretesting to ensure validity and reliability of each construct measurements before actual study. Statistical tools including frequency distribution, mean, standard deviation and coefficient of variation were used as descriptive statistics. Multivariate OLS regression was applied to examine the effect of firm specific factors on financial performance. Stepwise regression was adopted to examine the moderating effect of business regulatory requirements on the relationship between firm specific factors and financial performance. The study established that firm financial aspects had a significant direct effect on financial performance of private security firm in Kenya. The study also revealed that firm entrepreneur attributes had a direct significant effect on private security firms’ financial performance in Kenya. The study also noted that firm characteristics had a significant direct effect on private security firms’ financial performance. Finance access regulations did not have a significant effect on the effect of firm specific factors on financial performance. Further, private security industry regulations had a significant moderating effect on the effect of firm specific factors on private security firms’ financial performance in Kenya. The study thus concluded that all firm specific factors significantly explained financial performance of private security firms in Kenya. The study also concluded that finance access regulations was not a moderator of the effect of firm specific factors on financial performance of private security firms in Kenya. Further, the study concluded that private security industry regulations moderated the effect of firm specific factors on financial performance of private security firms in Kenya. The study recommends that private security firms should enhance their financial aspects such as improving their cash flow and having financial statements audited. The owners of private security firms should enhance their entrepreneur attributes such as networking and financial literacy. The study also suggests to management of private security firm to enhance their firm characteristics such as firm size. The research also noted that the management of private security firms ought to align their operations with private security industry regulations such as minimum wages and training for staff to enhance their financial performance.
Doctor of Philosophy in Business Administration (Finance Option), 2022
2022-10-01T00:00:00ZInfluence of Digital Distribution Strategies on Uptake of Bank Products and Services in KenyaIreri, Edwin M.http://repository.mut.ac.ke:8080/xmlui/handle/123456789/63762024-02-17T11:24:28Z2022-11-01T00:00:00ZInfluence of Digital Distribution Strategies on Uptake of Bank Products and Services in Kenya
Ireri, Edwin M.
banking, online payments, Automated Teller Machines, and agency banking, among others. Despite this, just 36% of clients use technology for agency banking, 31% for mobile banking, 30% for ATM banking, and 3% for internet banking. This led the researcher to investigate how banking distribution strategies influence the uptake of bank products and services. The study was conducted in 23 branches where primary data was collected using questionnaires and secondary data was collected from Family Bank and CBK's annual reports. The study addressed the four specific objectives which are: examining how Family Bank products and services products uptakes were influenced by internet banking, to explore the impact of mobile banking strategy on the adoption of products and services, examine the influence of agency banking on the adoption of bank products and services, and assess the influence of ATMs on the uptake of bank products and services. The study analyzed the literature written by other researchers on this subject, empirical studies, and the theoretical framework that served as the foundation for the conceptual framework. This study made use of the technology acceptance theory, economic distribution theory, agency theory, bank focused theory, bank-led theory, and non-bank-led theory. The study applied both descriptive and correlational research designs. The population of the study was 177,950 customers drawn from Mt Kenya r infrastructure. The study also concluded that internet banking though was statistically significant; it only constituted 3% of the users. The study recommended that further study be carried out to find out the influence of product knowledge on services and products uptake. It was noted that several customers possessed ATM cards but never used to transact with them. Further study should be carried out on the influence of customer training on products and services uptake. A policy should be formulated to ensure that once customers are registered in the strategies, they are trained on services available and use. The study finally recommends that the bank should data mine to establish the customers eligible but not registered and intensify onboarding. The study also recommends that the institution and partners ensure 100% network uptime. The study also recommends that the banks should adequately train customers on distribution strategies to increase uptake.
Doctor of Philosophy in Business Administration (Strategic Management Option), 2022.
2022-11-01T00:00:00ZEntrepreneurship Education, Environmental Dynamisms and Entrepreneurial Propensity among University Students in KenyaKaranja, Tabitha W.http://repository.mut.ac.ke:8080/xmlui/handle/123456789/48322024-02-17T11:18:55Z2018-02-01T00:00:00ZEntrepreneurship Education, Environmental Dynamisms and Entrepreneurial Propensity among University Students in Kenya
Karanja, Tabitha W.
Doctor of Philosophy in Business Administration (Entrepreneurship
Option) of Dedan Kimathi University of Technology, 2018
2018-02-01T00:00:00Z