MCOM Theses and Dissertations (2018)
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Browsing MCOM Theses and Dissertations (2018) by Subject "Corporate Governance"
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- ItemEffects of fraud risk management practices on net incurred medical claims in Kenyan insurance industry(Strathmore University, 2018) Gathu, Timothy GitauThe purpose of this research was to establish the effects of fraud risk management practices on insurance fraud levels which are manifested in the insurance claims that are fraudulent. The study employed standard framework of fraud risk management which encompasses corporate governance, fraud prevention practices, fraud detection practices and fraud response & monitoring practices. The study focused on collecting primary data on the fraud risk management practices from medical insurance providers. Further, secondary data on net incurred claims ratios, as well industry benchmarks was sought from Insurance Regulatory Authority (IRA). The data collected aided in the determination of possible correlation between independent variables (Corporate governance, fraud preventive practices, fraud detective practices, fraud response & monitoring and market share) and dependent variable net incurred claim ratio through the Pearson correlation test and regression analysis. The study found that most medical insurance providers engage in various proactive and reactive fraud risk management practices which were perceived to have varying levels of effectiveness. Correlation tests indicated that corporate governance, fraud preventive practices, fraud detective practices and fraud response & monitoring practices were significant in predicting the dependent variable of the study, (Net incurred claim ratio). However, the market share was not a significant determinant of the net incurred claim ratio. Corporate governance and fraud detective practices were found to be moderately negatively correlated to net incurred claim ratio. Fraud preventive practices and fraud monitoring practices were found to have a strong negative correlation with net incurred claim ratio. Results of regression analysis revealed that the fraudulent risk management practices significantly predicted the level of net incurred claim ratio. The implication of these findings is that if organizations employ strong fraud risk management practices, they are likely to reduce the level of fraudulent insurance claims. On the other hand, organisations with weaker fraud risk management practices were likely to have a higher level of net incurred claim ratio which factors the fraudulent claims. Organizations can use this inverse relationship to fix strong controls which will impact positively on reducing the level of fraud.
- ItemThe Influence of corporate governance on the organisation culture in the automotive companies in Kenya(Strathmore University, 2018) Mcgaw, Linda NzembaGood corporate governance mechanisms are important for the success of any business. However, with the rising cases of corporate failures, reduction of shareholder value and misappropriation, corporate governance has emerged to be an issue of great concern to potential investors and other stakeholders. The fundamental arguments among the various stakeholders is on the board’s ability to discharge its delegated mandate and steer the company in the right direction. This research study largely contributes to the business literature with the primary objective being to analyze the influence of corporate governance on the organization culture in the Kenyan automotive companies. The specific objectives were to establish the extent which ownership structure, board behavior, CEO tenure influenced organization culture. The target population was 32 companies within the automotive sector in Kenya, focusing on the Board members and senior executives who formed part of the board. The research study adopted descriptive research design, with descriptive statistics, multiple regression analysis and univariate analysis being used for data analysis. Three important corporate governance variables such as ownership structure, board behavior and Chief executive officer’s tenure were examined. Organization culture was also analyzed using the glue that holds the organization together. From the respondents who formed part of the research study, it was established that corporate governance had an influence on the organization culture of the various companies in the automotive sector in Kenya. However, ownership structure as a corporate governance mechanism had a major influence on organization culture compared to board behavior and CEO tenure. It was also identified that the automotive companies in Kenya strongly agreed that productivity and results was the glue that held the organization together; this was largely influenced by their governance structures and the business environment.
- ItemThe Relevance of audit report lag and its corporate governance determinants among listed companies in the East African Community States(Strathmore University, 2018) Gacheru, Grace WanjikuThe objective of this study is to establish the relevance of audit report lag and its corporate governance determinants among listed companies in East Africa. Descriptive statistics were used to compare the different audit report lags in Kenya, Uganda, Tanzania, and Rwanda and to establish the relevance of ARL in investment making decisions. Pooled regressions were performed to identify the significant corporate governance factors in listed companies in East Arica. This study focused on a ten-year period from 2007 to 2016. The findings revealed that of the four countries Rwanda had the shortest average ARL, 86 days while Tanzania had the longest average, 103 days. The most significant corporate governance factors in Kenya were, gender diversity in the board of directors, frequency of audit committee meetings and the auditor type. In Uganda, the most significant corporate governance factor was the audit committee financial expertise while in Tanzania, the board size and auditor type were the most significant. There were no significant corporate governance factors influencing audit report lag in Rwanda. The analysis of Primary data revealed that most investors rely on published financials for investment decisions, suggesting that ARL could be relevant for investment making decisions. Further analysis of information collected from the questionnaires revealed that the competence of the clients’ finance team, completeness and quality of information provided to auditors and the type of the audit report (qualified or unqualified) highly influenced ARL. There is need for academic scholars to extend this research by examining other factors influencing ARL in East Africa. The various regulators and policymakers are invited ensure strict adherence to the codes of corporate governance to achieve high standards of governance in listed companies. The boards of directors’, management and external auditors are encouraged to focus on prompt financial reporting because investors in East Africa highly rely on published financial reports to make investment decisions. This study acts the foundation for future research by providing empirical evidence on the relevance of audit report lag and its corporate governance determinants among listed companies in East Africa.