MBA Theses and Dissertations (2021)

Permanent URI for this collection

http://hdl.handle.net/11071/12503

Browse

Now showing 1 - 20 of 56

Analysing the determinants of the performance of listed Real Estate Investment Trusts in Africa
(Strathmore University, 2021) Chirchir, Linda Chepkorir
The emergence of real estate investment trusts (REITs) was expected to be a game changer within the financial markets in Africa. However, reports have shown that there has been low uptake of REITs which has been attributed to the general poor performance of the market, among other challenges. Despite the notable performance struggles within REITs, there has been insufficient examination of the determinants of the financial performance of the REITs. This study analysed the determinants of the financial performance of the listed REITs in Africa. The study specifically focused on the interest rates, inflation rates, gross domestic products (GDP), and firm characteristics effect on financial performance. The study was premised on the resource-based view theory. The research adopted a positivism research philosophy with a descriptive correlational research design being the central design guiding the study. The target population for the study was the 34 listed REITs in South Africa and Three in Nigeria, and One in Kenya. The study adopted a census survey of all the listed REITs in the continent. Data were collected using a secondary data extraction form from the financial statements of the listed REITs between 2010 2020. The collected panel were compiled in Microsoft Excel and analyzed using Stata 16. The research adopted descriptive analysis, correlation analysis, and panel regression analysis. The findings were presented in line with the objectives of the study. The panel regression results indicated that interest rates, inflation rates, GDP, leverage, liquidity, firm age, and size were responsible for 52.70% of the financial performance of listed REITs in Africa. The study concluded that inflation rate, interest rate, and liquidity had an insignificant effect on the financial performance of the listed REITs. Conclusions were further made that GDP, leverage, firm size, and age of the firm had a significant effect on the financial performance of listed firms in Africa. The study recommends that the firms should collaborate with regulatory bodies in the development of institutional benchmarks to guide the management of inflation and interest rates as well as guide REITs investments during economic boom periods. Further, the study recommends the firms should focus on strategies that will guide the management of the debt within the firm as well as advocating for prudent management of the firm assets and investments. Lastly, the firms should develop clear liquidity management measures that will ensure that the firm is able to meet its financial obligations.
Analysis of counterfeit- drug-prevention strategies on financial performance of Nairobi’s drug retailing pharmacies
(Strathmore University, 2021) Cheruto, Molly
Kenya Association of Manufacturers indicates that up to 40% of the medications in circulation are falsified. The main implications of this high proportion are the ineffective treatment of the population and disruptions in the pricing mechanism of medicines in the country. These concerns are of pertinence to private pharmacies seeking to avail medication to the population; inefficacious medication results in a loss of trust by patients. This reduces customer flow whereas ineffective pricing results in unjustifiably low costs by competitors sourcing products from competitors’ falsified outlets. Both these concerns have implications for the financial performance of pharmacies. The study is guided by Reasoned Action and Planned Behaviour's theory with the assertion that an understanding of the merits of the anticounterfeiting approaches would inspire action towards proper implementation. Implementation of the approaches would serve to improve the performance of the pharmacies. The general thrust of extant empirical findings was that anticounterfeiting approaches positively impact the performance of pharmacies. The central objective of the research was to examine the anti-counterfeiting strategies employed by retail pharmacies in Nairobi County and their impact on the financial performance of the retail pharmacies. The population of the study consists of pharmacies in Nairobi County. Therefore, the specific objectives were to establish the effect of chemical-physical anti-falsified strategies on the performance of pharmaceutical retail pharmacies in Nairobi. To establish the effect of tracking anti-falsified strategies on the performance of pharmaceutical retail pharmacies in Nairobi. To establish the effect of supply chain integration anti-falsified strategies on the performance of pharmaceutical retail pharmacies in Nairobi. Data was collected from retail pharmacies in Nairobi County through the use of questionnaires. An Ordinary Least Square regression model was then used to address the objectives of the study. Findings indicated that none of the approaches had a bearing on the financial performance of pharmacies in Nairobi. Therefore, the conclusion was that current anti-counterfeiting approaches were inefficacious in impacting the performance of pharmacies. The recommendation forthcoming from the finding is that pharmacies should assess their rigor in implementing anticounterfeiting approaches as extant literature indicates that there is a link between proper utilization of the approaches and performance of pharmacies.
An Analysis of service differentiation strategies adopted by top law firms in Kenya
(Strathmore University, 2021) Kariuki, Esther Gathoni
The increasing pressure on businesses to curtail their costs has led to a challenging business environment for law firms, characterised by demand for reduction in legal spend, the demand for more use of technology, and more efficiency in legal service delivery. This study sought to examine how top law firms in Kenya have sought to differentiate themselves in a changing marketplace in the manner in which they price their services, harness technology to improve their processes, and endeavour to achieve efficiency in their operations. The study was premised on the market-based view that firm performance is primarily based on industry and market factors; and the survival based theory that companies have to find ways to differentiate themselves from their competitors in order to survive. The study adopted a cross-sectional and descriptive research design to identify the strategies that law firms had adopted and to examine the impact of the strategies on competitive advantage. The study population were the partners and senior associates from each of the 11 top law firms ranked as leading law firms by all of IFLR 1000, Chambers and Partners and Legal 500. Purposive and stratified sampling techniques were used to identify respondents with the requisite experience. Descriptive and inferential statistics were used to analyse the data. The study established that top law firms perceive that there exists a moderate to strong positive relationship between pricing and efficiency strategies adopted and an improvement in the firm’s competitive advantage; but that the relationship between the use of technology and competitive advantage is negligible. The study recommends that law firms invest in the development of pricing strategy and integrate pricing strategy in overall strategic planning and the continued use of strategies that improve efficiency in service delivery. The study recommends that further research be carried out on a bigger population of law firms and that numerical measures of competitive advantage be used in further research.
Analysis of the determinants of domestic maize prices in Kenya
(Strathmore University, 2021) Kilwake, Pamela
The pricing of maize in Kenya has been the subject of much discussion over previous years. Various stakeholders in the industry (farmers, millers, regulators) offer often conflicting ideas on the factors that are deemed pivotal to the determination of maize prices. The current study sought to analyse the determinants of domestic maize prices in Kenya. The research was grounded on the law of supply and demand theory. The research relied on a quantitative approach grounded on an explanatory research design. The study utilized time series from 1990 -2019. This study relied on secondary research data. The study relied on time series collected from secondary sources of data using data extraction forms to obtain the maize price in Kenya. The data collected was analysed using descriptive statistics and inferential analysis. The results were presented using bar graphs, charts, and tables as deemed adequate for this study. The study was able to obtain all the 210 observation from the Central Bank of Kenya, World Bank Data and Kenya National Bureau of statistics. The correlation tests showed that macroeconomic factors, maize import and export quantity, land acreage under maize cultivation and maize production had a positive and significant correlation with domestic maize prices. The results also showed that maize export quantity had a positive but insignificant correlation with domestic maize prices. Regression analyses was carried out to determine the relationship between the study variables. The regression results indicated that 80.28% of the domestic maize prices in Kenya were determined by GDP growth, exchange rate variations, maize import quantity, maize export quantity, annual land acreage and annual quantity produced. The research also found out that GDP growth and maize export quantity did not have a statistically significant influence on domestic maize prices. The study concluded that exchange rate variation, maize quantity produced and maize import quantity had a positive and significant influence, while land acreage under maize cultivation had a significant and negative influence on the domestic maize prices. The research recommends that the government should incentivize local farmers to improve their maize production and reduce reliance on maize imports. Further the study recommends that local farmers should improve their investment in modern agriculture which can translate most small-scale farmers to large-scale farmers which can enhance the maize yield and foster their competitiveness within the global maize market.
Assessment of effectiveness of existing oncology drug distribution model for the Kenyan market
(Strathmore University, 2021) Olwal, Romeo
The high mortality due to cancer in developing countries necessitates the development of drug distribution models that ensure effectiveness in delivery and pricing of oncology medication. This need is highlighted by the fact that developing countries like Kenya are most affected by cancer as indicated by the comparative proportion of deaths occurring among such countries. The main objective of the study was to examine the characteristics and effectiveness of existing oncology medicines drug distribution strategies and propose a model for expanding access in the Kenyan market. The study specifically sought to characterize existing oncology drug distribution strategies applied in Kenyan pharmaceutical industry; examine the effectiveness of the strategies based on the experiences and opinions of oncology and pharmaceutical industry experts and finally, develop a model for scaling up drug distribution for oncology medicines in the Kenyan healthcare industry. The study centred on an exploratory research design. Qualitative data was collected from three pharmaceutical firms (Novartis, Roche and Astra Zeneca), two medicines supplies organizations (the Kenya Medical Supplies Authority – KEMSA, and the Mission for Essential Drugs and Supplies – MEDS), and two hospitals serving high volumes of cancer patients (the Kenyatta National Hospital - KNH, a public hospital, and the Texas Cancer Centre – a private hospital. A total of 19 interviews were collected from the organizations. A content analysis approach, centring on transcribed interviews, was employed to address the study objectives. The main contribution of the study presents in highlighting a relatively more efficacious approach to distribution of oncological medicines to the needing population of cancer patients in Kenya. Findings point to three models as most dominant in the market – reduced wholesaler arrangement, direct sales to pharmacies and short-line wholesaling. The models were generally ineffective with respect to rapidity of delivery, continuity of supply and affordability. An ideal model is proposed following an assessment of responses suggesting the need for stakeholder engagement in the crafting of drug distribution models. Findings are of pertinence to policy makers, manufacturers, distributors, payers and patients involved in treatment in the oncology space.
Competitive strategies and the financial sustainability of commercial banks in Kenya
(Strathmore University, 2021) Owaga, Beatrice
There is a limited examination of the effect of competitive strategies on the financial sustainability of commercial banks which created an empirical gap that this research was premised. The current study sought to establish the effect of competitive strategies on the financial sustainability of registered banks in Kenya. The focussed on the effect of innovative strategies, differentiation, and marketing strategies on financial sustainability. The study was anchored on the theory of competitive advantage and the innovation diffusion theory. The study adopted an explanatory research design with the unit of analysis being the 41 registered commercial banks in Kenya. The sample respondents were 94 respondents drawn from the commercial banks. The study utilized a structured questionnaire in the data collection with the collected data being analyzed using descriptive and inferential statistics. The findings of the study indicated that there is a positive relationship between competitive strategies and the financial sustainability of commercial banks. The study results show there is a significant association between innovative strategies, marketing strategies, and the financial sustainability of commercial banks. The study found an insignificant positive effect of diversification strategies on the financial sustainability of commercial banks. The study recommends that commercial banks should invest more in technological infrastructure to drive digital banking. The research further recommends that commercial banks should foster customer relationship building and market positioning strategies. The study also recommends that commercial banks should review their operating environment to ensure that diversification efforts undertaken by the bank meet the customer gaps existing in the institutions.
Corporate governance compliance and financial performance of listed companies in Kenya
(Strathmore University, 2021) Lumbi, Holliness Karimi
Corporate governance has been the subject of discussion globally in recent years. Various events arising from corporate fraud in the last ten years have resulted in the heightened interest in the subject. In Kenya, the corporate sector has also faced corporate governance challenges and investors have lost funds to the tune of more than Ksh. 200 Billion in relation to poor corporate governance. The Capital Markets Authority (CMA) therefore formulated a Code of Corporate Governance for Issuers of Public Securities, 2015 (the CMA Code) to promote and regulate governance structures and protection of investors. This study investigated the level of compliance of companies listed on the Nairobi Securities Exchange with the CMA Code. In addition, the study also investigated the effect of compliance on financial performance, which was measured through the Return on Equity ratio. The study used both primary and secondary data to investigate the research questions and the study drew conclusions from the two data sets independently. Primary data was collected using survey questionnaires issued to respondents at management level at the various companies. Secondary data was collected in relation to the level of compliance with the CMA Code and Return on Equity from the individual annual reports form the years 2017 to 2019. A single regression model was fitted to the data sets independently in order to test the effect of the independent variables on the dependent variable. The study found that there was a significant improvement in the implementation of the CMA Code from 54% in 2017 to 71% in 2019. Based on the results from the secondary data, the corporate governance metrics had no significant impact on financial performance while primary data showed that respondents were of the view that transparency and disclosure had a significant impact on financial performance.
Critical factors that influence growth of technology-based Small and Medium Enterprises: case of software as service providers in Nairobi, Kenya
(Strathmore University, 2021) Ngungi, Mark Mwongela
Small and Medium-sized enterprises all over the world especially in third world countries play an important role in the economy and contribute substantially to unemployment reduction. This sector is emerging today as an avenue for lucrative employment, is being progressively recognized as the prime means for achieving sustainable as well as equitable industrial diversification, growth, and dispersion; thus, improving both economic and social development. Consequently, the current study aims at examining the critical success factors that influence the growth of small and medium information communication and technology enterprises in Nairobi County. The study's specific objectives were to examine the effect of management skills, competition, regulation, and technology changes on the growth of ICT SMEs in Nairobi City County. The study was based on resource-based theory and diffusion innovation theory. The study adopted a descriptive research design. Primary data was collected using questionnaires from a sample of 160 respondents drawn from SaaS ICT SMEs. Validity was examined through the use of Cronbach's Alpha coefficient and the research instrument was valid. Data was analyzed through descriptive statistics that included mean, standard deviation, percentages, and frequencies. Inferential statistics included correlation and multiple linear regression. Findings were presented in figures and tables. Study findings indicated that there was a positive and significant effect of management skills, competition, regulation, and technology changes on the growth of ICT SMEs in Nairobi County. From the findings, it was concluded that there is need for the development of management skills training programs for ICT SMEs. There is need for the embracement of innovation to respond to competition. There is need for the development of research and development departments to aid ICT in response to technology changes that may impact their performance positively. Policymakers should develop policies that are aimed at enhancing the competitiveness of ICT SMEs.
Determinants of customer e-loyalty in the online retail industry in Kenya: a case study of Jumia Kenya
(Strathmore University, 2021) Mwaura, Stephen Mwega
Studies have shown that customer e-loyalty directly impacts the profitability of a business. Due to the rapid growth of online retailing, competition is stiff and as such business need to ensure that their costumers remain loyal in their patronage, which would then translate to profitability. This research examined the determinants of customer e-loyalty within the online retail industry in Kenya, with a focus on Jumia Kenya. The study was anchored on the theory of planned behavior and the technology acceptance model theory. A descriptive research design was selected for the study. The study adopted a convenience sampling approach to select online shoppers who patronize Jumia Kenya. The sample set was 400 online shoppers. A pilot test was administered to establish the reliability and validity of the research instruments. Questionnaires issued to online shoppers, were used for data collection. The SPSS (Version 23) software was used to analyze data. Descriptive and inferential statistical analyses provided interpretations from the collected data. The research established a positive and statistically significant influence of e-service quality, e-satisfaction and e-trust on customer e-loyalty within the online retail industry in Kenya, albeit this relationship was weak amongst the variables. The study recommends that online retailers improve their practices and strategies that enhance e-trust, e-service quality and e-satisfaction such as: good customer support, reliable online customer service representation, implementation of automation tools such as chatbots for improved customer engagement, and beautification of online catalogs for improved navigation, content management, and comprehensible terms and conditions. Additionally, the study recommends that online retailers raise the quality and variety of goods and services provided, improve delivery times, and invest in loyalty programs and incentives, as these proposals may enhance e-loyalty which has been positively linked to increased profits in multiple studies. Future studies could include other determinants that may influence e-loyalty, namely socioeconomic, cultural, political, environmental and consumer characteristics. Future research could also consider expanding the scope to include different regions within Africa, to generalize the results.
Determinants of developers pricing for residential real estate in Nairobi Metropolitan Area
(Strathmore University, 2021) Denge, Johnson
Real estate prices in the major developed markets have been increasing, sometimes dramatically, over the last decade in both nominal and real terms. This study seeks analyze the determinants of developers pricing for residential real estate in Nairobi Metropolitan Area. It was guided by the following specific objectives; to assess the effects of cost of land on price for residential real estate in Nairobi Metropolitan Area, to analyze the influence of property size on price for residential real estate in the study area, to investigate the influence of location on price for residential real estate in Nairobi Metropolitan Area and to assess the effects of cost of development finance on price for residential real estate in Nairobi Metropolitan Area. It is guided by a number of theories including The Trade Off Theory of Capital Expenditure, Real Estate Market Theory and Hedonic Model of Pricing. This study adopted an cross-sectional research design. The population in this study comprised of the employees or practitioners of the developers and mainly those in charge of pricing in various real estate development firms operating within the metropolis. This researcher employed a census survey, which means all the 75 developers were the respondents for the study. Data used was both from primary and secondary sources. Primary source data was from the firms and institutions with structured questionnaires. Collected and organized was processed to make it useful, that is to turn it into information. The data was analyzed using descriptive and inductive statistics with the use of statistical software MINTAB version 14. Descriptive statistics included measures of central tendency of mean, frequency, standard deviation and percentile. Also used were measures of dispersion presented in tables. A straight-line predictor model was developed. The study achieved 83% response from the population with majority having been in the industry for more than 10 years (42%). On the development portfolio, 48% had their portfolio spent of between Kshs. 501 million to 1 Billion. Cost land, location, cost of finance and zoning regulations explain 41% of variation in residential price index while 59% is accounted for by the other factors considered in the study. It concluded that there is need to strategically control land price through proper valuation methodology and proactive zoning by relevant authorities. Need for infrastructure development, utilities and social amenities and also mechanism for access to affordable credit for both the end user and the developer.
Determinants of employee motivation among temporary workers in beer distribution firms in Nairobi City County, Kenya
(Strathmore University, 2021) Kibaara, Robert
Employee motivation has been widely studied by scholars and human resource practitioners. However, most of the studies have invested in employee motivation among permanent employees with less focus being put on temporary workers’ motivation. Beer distribution firms rely predominantly on temporary personnel due to the cyclic nature of their business operations. This research sought to examine the determinants of employee motivation among temporary workers in beer distribution firms. The research specifically examined the effect of monetary benefits, work environment, and training and development on motivation among temporary workers. The theoretical review was based on Herzberg two factor theory of motivation. The research employed a descriptive research design with a quantitative approach. The population of the study was the 304 temporary employees working within the four beer distribution firms in Nairobi City County. The sample was calculated using the Yamane formula. The sample size was 225 temporary workers who were apportioned across the beer distribution firms. The study used a structured questionnaire to collect data using the drop and pick method. The collected research data was analyzed using descriptive and inferential statistics. The correlation tests indicated there is a positive and significant relationship between monetary benefits (i.e., remuneration, fringe benefits, bonuses, overtime pay) and employee motivation, with all relationships showing moderate strength. The study also found a positive and significant relationship between training and development (i.e., on-job training, workshops and seminars, career progression, professional development) and employee motivation, with all relationships being strong except workshops and seminars that showed moderate strength. The research also revealed that the work environment (i.e., co-worker relations, work-life balance, communication, teamwork, work supervision) and temporary employee motivation were positively correlated. The study revealed that 77% of changes in employee motivation among temporary workers could be determined by the three factors; monetary benefits, work environment and training and development. The research recommends that the organization should invest in employee training and skills development as well as offer monetary benefits that will improve the reward and recognition of temporary workers’ efforts. The study suggests that the organization should create a supportive work environment that will be key to improving the motivation of temporary workers.
Determinants of financial sustainability of universities: a case of Strathmore University
(Strathmore University, 2021) Riachi, Christine Kiringa
With the changing landscape in the higher education sector in the world, only the strong Universities will survive. Financial sustainability will enable the university to fund innovation to adapt to dynamic changes. In Kenya there has been a lot of changes in the higher education sector, the universities found themselves with few students thereby reducing their main source of revenue which has been tuition fees, this brought about cash crisis that threatened the financial survival of the institutions. This study sought to find out the determinants of the financial sustainability of the private universities with a focus on the revenue diversification, cost management practices and human resource competence. The study adopted a descriptive research design with the population being employees of Strathmore University. Purposive sampling was used to identify middle managers; the data was collected using a structured questionnaire as well as secondary data from the published annual report covering the period from 2014 to 2018. The study established that while cost management practices and human resource competence had significant influence on financial sustainability of Strathmore University, revenue diversification strategies had insignificant effect. The study concluded that cost management practices had the largest influence on financial sustainability of Strathmore University followed by human resource competencies and lastly revenue diversification strategies. The study recommended that the Ministry of Education and the Commission of University Education (CUE) should ensure that Strathmore University policies are aligned with the cost management practices and the human resource competencies are emphasized for financial sustainability of the institution. The various practitioners including the finance managers and heads of department will be able to understand the need to focus on cost management practices to enhance financial sustainability of their organizations. The study recommends further studies to be conducted focusing on other universities for instance by comparing the public and the private universities in Kenya.
Determinants of mobile banking adoption: case study of Ecobank Togo
(Strathmore University, 2021) Konan, Jean Tolla
The purpose of this study is to identify factors that influence the uptake of Ecobank mobile banking app in Lomé-Togo and rank them according to importance. The study examines five objectives around the uptake of mobile banking application: determine the importance of ease-of-use, determine and rate the importance of perceived relevance/usefulness, determine and rate the importance of perceived risks, determine and rate the importance of customer support, and determine and rate the importance of social trends. It uses quantitative research method. Data is collected through questionnaires, and desk review of secondary data, and presented through descriptive and inferential statistics for analysis. The research focused only on Ecobank in Togo specifically Lomé town. The study mainly used at two theories to explain what influences the adoption of technology innovation in society: The Theory of reasoned action (TRA) and the Technology Acceptance Model (TAM). It is the aim of this study that the insights will be used by Ecobank Togo to boost the uptake of mobile banking and thus increase customer base. A total of 3017 individuals were sampled however, only 1422 responded to the survey. Therefore, the response rate was 47%. This study concludes that the five adoption factors are significant influencers of mobile banking adoption in Togo. The study confirms that the first three independent variables (Ease of use, Perceived risk & Perceived usefulness) explains the dependent variable by over 87%, it means that if Ecobank wants to improve mobile banking adoption, it needs to invest its resources in the order of priority, on ease of use, perceived risk and Perceived usefulness. This will be very useful to bank in identifying the priority areas for intervention to tackle the current uptake hiccups. In addition, this study will help to build the knowledge base on adoption of mobile banking among employees of Ecobank as well as general public.
Determinants of newspaper readership in Kenya
(Strathmore University, 2021) Kipkemboi, Andrew
The growth, accessibility, and availability of the Internet has drastically altered the means by which individuals receive news and information. Consequently, this has affected the circulation of newspapers. Newspaper publishers are struggling to maintain their market share while also promoting newspaper readership among a younger demographic, which prefers using the Internet to get their news and information. Due to this change and amid the new realities of the Covid-19 pandemic, this study endeavours to find out the determinants of newspaper readership in Kenya. To effectively answer this question, the study was guided by four specific objectives: To determine the influence of cost on newspaper readership in Kenya; to determine how technology influences newspaper readership in Kenya; to determine how content influences newspaper readership in Kenya and; to determine how accessibility influences newspaper readership in Kenya. The study was based on Technological Determinism and Uses and Gratification theories. The study adopted a descriptive survey approach. The target population for the study was 328 newspaper readers from which a sample of 175 was calculated. This study used non-probability sampling technique. Specifically, the convenience sampling technique was applied. The questionnaires were self-distributed to participants. The data was analysed using the SPSS statistical package adopting both descriptive and inferential statistical approaches whereby data was presented in figures and tables and supported with reviewed literature. The correlation results showed that there existed positive and significant associations between content, technology, and newspaper readership whilst positive but insignificant associations were observed between newspaper readership, cost and accessibility. The regression findings indicate increase in cost and technology would result in a reduction of newspaper readership and increases in content and accessibility would yield an increase in newspaper readership. The study concludes an increase in price of newspapers and access to technology would yield a decline in print newspaper readership; an increase in content of print newspapers would result in greater readership; that greater circulation of printed newspaper results in an increase of newspaper readership. The study recommends that print media focuses on content that is targeted towards the youth to encourage readership among this age group while also enhancing circulation to increase readership. There is need for newspapers to diversify the topics and subjects that are covered in their headlines, front page, news articles, and editorials to elicit interest from readers. Lastly, media houses should consider the cost of newspapers in their strategy to improve newspaper readership. Lastly, but not least, the study contributed to knowledge in understanding newspaper readership in a digitally saturated environment while suggesting areas of future research on newspaper readership for future researchers.
Disclosure of key audit matters and market reaction: the case of companies listed on the Nairobi Securities Exchange
(Strathmore University, 2021) Kithinji, Freda Mwendwa
This study was aimed at investigating whether the disclosure of key audit matters in the auditor’s report of listed companies in the Nairobi Securities Exchange causes a reaction in the stock market. The purpose of this was to establish the information value and hence the usefulness of key audit matters information for the benefit of investors and the Nairobi Securities Exchange market in general. A descriptive research design and quantitative methods were adopted for this study. Secondary data comprising key audit matters as the independent variable was collected from annual reports of companies listed in the Nairobi Securities Exchange, while cumulative average abnormal returns were derived as the dependent variable from listed company stock prices obtained from the NSE. The research focused on four key audit matters namely impairment of assets, valuation of financial instruments, revenue recognition and tax liabilities, for the first three years after implementation of the KAMs regulation effective December 2016, globally. Cumulative average abnormal returns were used as a measure of the stock market reaction. Control variables including company size, audit firm size, earnings per share, debt ratio and return on assets collected from NSE listed company annual reports, were added to the analysis to evaluate their effect on the independent and dependent variables. Event study methodology was applied with the date of release of the audit report with KAMs being the event date over an event window of 30 days before and after event date. Findings from the regression analysis performed using SPSS revealed a significant relationship between all KAMs studied and cumulative average abnormal returns at 95% confidence interval, hence KAMs elicit a stock market reaction at the NSE. Additionally, the KAMs led to an increase in abnormal returns in the first year they were implemented, followed by a decrease in abnormal returns in the following two years indicating that overtime there was a possible reduction in information relevance of the KAM which requires attention by the audit regulator, ICPAK to explore ways of improving on the KAMs disclosure. When control variables were added to the regression model, return on assets ratio was most impactful compared to the KAM, meaning that investors still consider company financials as important in the presence of KAMs. KAMs are a significant predictor on their own. The limitations of this study included using AGM date as event date proxy; the study was limited to analysing the market reaction to four specified KAM topics and focused on the presence and not extremity of the KAM disclosure which have been recommended as areas for further research. From the findings of this study, the researcher recommends a consideration into adoption of KAMs regulation by government and other regulatory agencies such as the Office of the Auditor General, the Central Bank of Kenya and the Retirement Benefits Authority for their respective auditees and licensees, for the benefit of their stakeholders given the information value from KAMs, for better transparency.
Drivers of growth in the private security industry
(Strathmore University, 2021) Kinywa, Fred
Due to the emerging security issues in Kenya private security services have increased over the years. While a number of reasons such as increased crime, vandalism and terrorism on the back of the state’s diminishing capacity to contain the same can be attributed to this, there hasn’t been a dedicated study to prove or otherwise disagree with such anecdotally held evidence. Given the emerging rise of the private security industry, we found it necessary to carry out a study to find out the drivers of growth of the private security industry. Using a cross-sectional design and census of the target population of registered members of KSIA, the study findings based on collected primary data from 37 firms (24 registered with KSIA and the rest either aspiring or already in the process of registration) shows that the evolution of security roles has risen beyond manned guarding to more complex services which include consulting, training, alarm response services, vehicle tracking, security systems and technology, cash management and investigative services among others. Besides, the private security firms are growing at a significant rate with increasing annual profits of more than 1 billion Kenyan Shillings on average every year. This increased profit can be attributed to a sound regulatory environment that has allowed the firms to take more of a center-stage in providing security solutions to the people. Also, dispute resolution mechanisms available in the country are helping improve consumer confidence in the procuring of private security services. The implication of these findings is that we can never take for granted the private security industry and despite the regulation of the same provided for in the Private Security Regulation Act in 2016, there are key lessons that can be forwarded for a more sustained growth within the precepts of the law. Firstly, private security firms should diversify their service provision to encompass a wider scope of service delivery. Secondly, there is opportunity to continue investing in the industry particularly in security services to individuals in their homes and offices with more diversified products to address the needs of the rising middle class. Finally, there is need for continued effort in ensuring a sustainable regulatory environment and full implementation of the dispute regulation strategies in Kenya.
Effect of brand management on the performance of star rated hotels in Nairobi County, Kenya
(Strathmore University, 2021) Waithaka, Maina
Global, regional and local shutdowns after the Covid-19 pandemic have seen players in the hotel industry record losses and some firms have been forced to permanently shut down. The remaining hotels have to demonstrate their capability to sustain performance; and in this relation, star-rated hotels have to demonstrate their ability to sustain their performance through competitive brand management strategies. Despite increased literature on branding, most of the studies have focused on firms outside of the hospitality industry within the country hence they are limited studies focusing on brand management and performance of star-rated establishments. This study sought to examine the influence of brand management on the performance of star-rate hotels in Kenya. The study specifically examined the effect of brand identity on performance, brand association on performance, brand recognition on performance, and brand personality on the performance of star-rated hotels in Kenya. The research was grounded on the resource-based-view theory, the social identity theory, and the theory of brand loyalty. The study was premised on a positivism research philosophy. A descriptive research design was adopted which allowed for the examination of the phenomena in its natural setting. The study population was the 53 star-rated hotels within Nairobi County. The study targeted three senior managers in each of the star-rated hotels. The study employed a census approach in selecting 159 managers from the hotels using a judgemental sampling approach. The research utilized a structured research questionnaire with both physical and online approaches used in the data collection process. The study research instrument was pretested among 10% of the sample respondents. This was integral in supporting reliability and validity testing. The collected data was analyzed using quantitative techniques such as percentages, frequencies, means, correlation tests, and regression tests. The research was able to obtain a 77% response rate which was suitable for quantitative analysis. The response indicated that most of the participants were marketing managers and finance managers. The test for correlation revealed that there was a moderate positive effect of brand identity on organization performance. Results also noted a weak positive effect of brand association, brand recognition, and brand personality on the performance of the star-rated hotels. The regression tests established that 38.2% of the changes in the organizational performance of star-rated hotels are as a result of brand management practices. The regression tests supported the conclusion that brand association has an insignificant effect on the organizational performance of star-rated hotels. Further, conclusions were that brand identity, brand recognition, and brand personality had a positive and significant effect on the organizational performance of star-rated hotels. The study recommends that the Tourism regulatory authority in partnership with the various star-rated hotels can develop standardized branding guidelines which will help the local hospitality industry compete with international hotels. Further, the research recommends hotels should develop suitable package offerings focused on the local customer base who shy away from established star-rated hotels. More so, the management should review their competitor's service and product offering to ensure their brand recognition practices are distinct in the market which is critical to enhanced performance. Lastly, the management can employ social media channels in their product placement to ensure they are able to appeal to a larger market and create recognition for their brand offering. The study was limited severely by the closure of some of the hotels as a result of the ongoing pandemic containment measures. However, this limitation was overcome through the inclusion of other hotels which are not highly rated but are registered and licensed to operate within the borders of Nairobi City County.
The Effect of engagement strategies on the employee engagement of millennials in Kenya’s software development firms
(Strathmore University, 2021) Mbugua, Rufus Ngugi
This paper analysed the effect that four (4) specific employee engagement strategies had on employee engagement in the software development space in Kenya. The study was guided by these four objectives/strategies; where the four engagement strategies analysed were career development, work life balance, and the use of enterprise social media. The target of the study was the millennial workforce in the software industry in Kenya, that is, employees between the ages of 20 and 39 years. From a total population of 283 ICT companies focused on system development, two (2) companies made up the population of the study. The companies selected operate in Nairobi, Kenya, as software development firms namely, Arifu and Andela. Millennials from their respective workforces were targeted in this study so as to understand their employee engagement strategy preference and overall reception to their company’s current employee engagement initiatives, to measure these against the prevailing objectives of the study. The study was quantitative, with a population size (employees of the two companies) of 430. The sample size of the study was 189 and actual respondents were 103. Questionnaires were shared electronically (via Survey Monkey) to the employees questioned to collect data on their level of employee engagement based on the engagement strategies employed in their organizations. Pearson’s correlation was used to evaluate the four (4) strategies to ascertain which strategies held higher importance to the millennial workforce. The study found that all four strategies were positively related to employee engagement though to varying degrees. Career Development had a Pearson’s correlation score of 0.604 making it the second-most related to employee engagement. It however ranked highest among all strategies with a mean of 2.38. Work-Life Balance had a score of 0.269 making it the least related to employee engagement. It was ranked as the fourth-most important strategy according to millennial employees, with a mean of 3.9. Enterprise Social Media had a Pearson’s correlation score of 0.529 making it the third-most related strategy. Gamification had a Pearson’s correlation score of 0.747 and emerged as the most related strategy. Remuneration, though not studied as one of the objectives, was regardless, highly regarded by the employees but was only considered feasible after a suitable work-life balance was attained. Companies should invest in the training of their employees and have conversations about their employees’ career objectives. They should also avoid overworking their employees, causing probable burnout, by enabling them to have a work-life balance. Frequent and timely communication will promote their alignment with company objectives and allow for dialogue and open communication. The concept of a fun and challenging work environment should be demystified so that it can add value in the workplace. There should be a balance between challenging work, and realistic expectations.
Effect of firm-level factors on the dividend payout among listed financial firms at the Nairobi Securities Exchange
(Strathmore University, 2021) Muchiri, Lydia
Investors expect a fair return on their investment irrespective of their preference, either capital or dividend gain. Financial reports of the listed firms in Kenya have shown that more than half of the listed firms have been unable to offer special dividends or have at least reduced the dividends payout. The current study sought to examine the effect of firm-level factors on the dividend payout among listed financial firms in Kenya. The study examined how profitability, liquidity, and leverage influence the dividend payout within the firms. The research was grounded on a bird in the hand theory, the shiftability theory of liquidity, and the efficient structure theory. The study adopted a descriptive, explanatory research design to assess the association between the research variables. The study adopted census sampling of the respondents. The sample size of the study was the 23 listed financial firms. The study relied on quantitative panel data that was collected from the listed financial firms in Kenya for the period 2012-2018. The collected research data were analyzed using descriptive and inferential statistics. The study utilized panel regression to determine the relationship between the study variables. The findings of this study are expected to enhance managerial practice and policy formulation within the financial sector. The study concluded that 11.01% of changes in the dividend payout within listed firms is determined by the selected firm-level factors, firm size and the capital adequacy. The findings led to the conclusion that profitability positively improves the level of dividend payout. The research also concluded that individually liquidity, leverage, firm size and capital adequacy does not have a significant effect on the dividend payout of the listed financial firms. The study recommends that listed firms should develop internal control mechanisms to monitor the debt levels within the firm, ensure sustained cash flow to the firm, and maintain a good liquidity level within the firm. The study also recommends that listed firms should ensure that firms should strike a balance between dividend payments and future investment of residual income within the firm.
The Effect of fixed versus floating exchange rate on financial performance of commercial banks in South Sudan
(Strathmore University, 2021) Tenoy, Samson Kipkorir
The financial sector plays an important role in Sub-Saharan countries, more so for South Sudan which is the youngest nation in Africa. More significantly, the adoption of a floating or fixed exchange rate regime affects the performance of commercial banks, hence the need to focus on it. This study aimed at establishing the effect of fixed verses floating exchange rate on the performance of commercial banks in South Sudan. Specifically, this study sought to: determine how fixed exchange rate affects the financial performance of commercial banks in commercial banks in South Sudan and to establish how floating exchange rate affects the financial performance of commercial banks in South Sudan; The study adopted a comparative descriptive research design and the population of the study was 30 banks operating in South Sudan between the months of December 2019 to December 2020. A sample of three foreign banks and two local bank was selected. Secondary data was collected and analysed through multiple linear regression. The study results indicated that the performance of foreign banks was affected by the exchange rate during the fixed exchange rate era (p<0.05) while performance of local banks was not affected by the exchange rate during the fixed exchange rate era (p>0.05). Results also showed that floating exchange rate affected the performance of all banks positively (p<0.05). Further, the study findings indicated that there is a significant effect (p = 0.008) of the effect of exchange rate volatility on the financial performance of banks in South Sudan. The study concluded that, first, fixed exchange rate regimes are more fragile in a world of intense financial integration; floating exchange rates are also conducive to enhance banks performance. In fact, in developing countries, banking crises occur more often in an environment of flexibility of the exchange rate. Finally, the study concludes that the consensus view that emerging countries should allow for more exchange rate flexibility as a means to enhance financial performance and to curb the effects of exchange rate volatilities. The study makes the following research recommendations: developing countries financial sectors should move away from the fixed exchange rate regime and to allow for more flexible exchange rates, countries which choose to maintain a fixed exchange rate, have to move in the direction of increasing the cost of a devaluation and enhanced supervision of the banking systems.

Browse

Browsing MBA Theses and Dissertations (2021) by Title

Results Per Page

Sort Options