MCOM Theses and Dissertations (2012)

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Browsing MCOM Theses and Dissertations (2012) by Author "Mboya, Josphat Kiweu"

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    Effects of information technology on the financial performamce of small and medium sized enterprises : a case of SMEs in Nairobi
    Gikonyo, Geoffrey Mungai; Mboya, Josphat Kiweu
    This study examines the effects of Information Technology (IT) on the financial performance of small and medium sized enterprises (SMEs) situated in Nairobi. The primary objective of the study was to examine whether there is any relationship between the use of IT and firm performance. Data was obtained through the use of purposive sampling from the National Social Security Fund (NSSF) Register of Kenya database as of 2009. The purposive sampling employed on the SMEs registered in the NSSF register led to the database of a leading IT firm which then formed the population of the study. The data obtained was analyzed through the use of descriptive analysis and also through the use of ordinary least squares regression analysis. The key finding of study was that firm performance and IT use are positively correlated. It also found that of the factors that affect the use of IT, only the level of spending on IT systems and the organizational structure of a given firm have a significant effect on IT use and its subsequent effect on firm performance. The study suggests that firms should place more emphasis on the role that individuals play within the organization since the organization will tend to perform well when each individual plays their role well. Further research is recommended to be carried out through the use of other methodologies so as to examine different angles of the role of IT in SME performance improvement.
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    Examination of factors influencing lending decision to SMEs : a case of finance providers in Tanzania
    Magreth, John Pallangyo; Mboya, Josphat Kiweu
    This study examines the factors that finance providers in the mainland of Tanzania consider important in SMEs lending decisions. Data were collected from the headquarters of finance providers in Dar-es salaam. A sample of 32 out of 46 finance providers was studied. Data was collected through questionnaires. The statistical analyses included descriptive statistics (mode and mean ranks), and Pearson chi-square. The findings show that the most critical criteria that are used by the finance providers to accept or reject the SME loan proposal were collateral, bank policy, risk of the default, size of the loan, credit history, net profit to sales, existing profitability, repayment of the previous loan, trading experience, repayment schedule, type of business, purpose of the loan, business ability and honesty, projected income, gearing, liquidity ratio, equity stake, management skills, and maturity. Using Pearson chi-square (x²) the association between factors was examined whereby the empirical results indicate that there is an association between having audited financial statements and access to credit. There is also an association between collateral and access to credit. When financial information were unavailable or unreliable, finance providers ranked very high the use of industry sector information, ownership type information, age of the firm information, work experience information, location of the firm information, firm size information, and education background information. The research concludes that lack of financial information and inability to present appropriate collateral are the reasons why finances are not available from the finance providers.
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    Rationale for use of forensic accounting in reducing audit expectations gap : a case for central Kenya cooperative societies
    Wanjohi, Festus M.; Mboya, Josphat Kiweu
    This study examines the rationale for the use of forensic accounting as a mechanism for reducing the audit expectations gap. Fraudulent activities in Kenya have been responsible for widespread collapse and poor performance of firms, hence the potential use of forensic audit to detect frauds and narrow the audit expectations gap. The study tests empirically the three hypotheses that, first, the audit expectations gap exists in Kenyan audit engagements; secondly, the introduction of forensic audit will be an important mechanism in reducing audit expectations gap; and thirdly, the introduction of user education and better auditing and accounting standards are other important mechanisms for reducing the audit expectations gap. The study employs a descriptive research study design. The study uses a sample of 134 respondents, comprising of 118 cooperatives and 16 audit firms which were selected using a stratified systematic sampling approach. The data collection instrument preferred for the study was a questionnaire. The data was analyzed using inferential statistics such as Chi square statistics, f exact test, one sample and two sample tests. Study findings indicate that there is a significant difference in responses between auditors and cooperative members. These findings imply the existence of audit expectations gap in Kenyan audit engagements. In addition, t-tests indicate that forensic accounting, user education and better auditing standards are important mechanisms in reducing the audit expectations gap. The study contributes to literature on the discourse of the audit expectations gap which is scarce in Sub-Saharan Africa in general and Kenya in particular.