MCOM Theses and Dissertations
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Find here Theses and Dissertations from for the award of Master of Commerce (MCOM). These works have been scanned and passed through the OCR. We do not hold liablity for correctness of content.
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Browsing MCOM Theses and Dissertations by Author "Dr. James Boyd McFie"
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- ItemAn Empirical investigation into the determinants of capital structure of SMEs in Nairobi, Kenya(Strathmore University, 2010) Macharia, Ishmail Maina; Dr. James Boyd McFieThis study examined whether capital structure theories from the developed world were applicable to Kenyan SMEs given the differences in economic development. The research design was quantitative. Financial data covering a three year period from 2004 to 2006 for forty three SMEs in the trade, hotel, retail and manufacturing sectors, were collected from the 2008 baseline survey by the Kenya Institute for Public Policy, Research and Analysis, KIPPRA. A panel data regression model was used to this data. In addition, a survey was done on the same population in order to triangulate the data from the secondary data analysis to enhance the reliability of the data. The dependent variable was the ratio total liabilities to total assets. Independent variables were size, asset structure and profitability and age with industry, ownership and growth as control variables. Profitability, asset structure and size were found to be key determinants of the capital structure of SMEs. The debt ratio was negatively related to age when turnover measured size but was positively related to age when total assets were used to measure size. The relationship was between the debt ratio and age was not statistically significant at 5% in both cases. The debt ratio was negatively related to size and to profitability but it was positively related to asset structure. This relationship between the debt ratio and size, profitability and asset structure was significant at 5%. Turnover was found to be a more robust measure of size than total assets for the sample in this study while the negative relationship between the debt ratio and profitability concurred with pecking order theory. The significance of asset structure underlined the importance of collateral in SME finance. The questionnaire Survey confirmed that profitability, assets and size were important determinants of capital structure. Profitability was found to be important to the SMEs as it is not an objective measure. The survey also found that while SMEs operated bank accounts, banks were their least preferred source of debt and there was no relationship between capital structure and Asian/African ownership, industry sector and growth.
- ItemAn evaluation of internal controls : the case of Nairobi small businesses(Strathmore University, 2009) Kakucha, Wilfred; Dr. James Boyd McFieThis study evaluated the level of effectiveness of internal controls operating in Nairobi. Secondly, this study examined the relationship between the age of an enterprise and effectiveness of its system of internal control. Thirdly, this study explored the relationship between the amount of resources held by an enterprise and its effectiveness of its system of internal control. Fourthly, this study investigated the nature of the relationship between internal control and financial performance. The study was quantitative and was carried on from September 2007 to June 2009. Using a sample of 30 small business as listed in the National Social Security Fund (NSSF) Register of Kenya, 2008, the study sought to meet the above mentioned objectives. Data was collected from the managers of small business using interviews and examination of documents pertaining to internal control. the response rate was 80%. Data was then analyzed using descriptive statistics and regression analysis. The study found that there are deficiencies in the systems of internal controls, with the degree of deficiencies varying from enterprise to another. the components of internal control that were missing in most businesses surveyed were: firstly, risk analysis, and secondly lack of proper flow of information. In addition, the study established that the sample population lacked awareness of what constituted an effective system of internal control. The study also found that there is significant statistical evidence to support the negative relationship between the age of an enterprise and the the effectiveness of its system of internal control. In addition, the study established that there is a negative correlation between the resources held by an enterprise and its internal control weaknesses. finally, the study found that there is a weak negative relationship between the internal control weaknesses and financial performance. there is need to enlighten operators of small business of what constitutes an efficient and effective system of internal control through seminars and forums. To cut down on the cost of maintaining full fledged internal audit and human resources departments, the small business should outsource this to specialist professional firms who will aid them on a timely basis. The researcher suggests that there is need to replicate the study in medium and large enterprises. Finally, there is need to establish the nature of frauds occurring in small businesses.