MCOM Theses and Dissertations (2022)

Permanent URI for this collection

http://hdl.handle.net/11071/13095

Browse

Recent Submissions

Now showing 1 - 5 of 21
  • Thumbnail Image
    Item
    An Assessment of the extent effect of seasonal anomalies on efficiency of firms: evidence from Nairobi Securities Exchange
    (Strathmore University, 2022) Kamau, Njuguna Evans
    The presence of security market anomalies provide an opportunity that market participants can exploit. The study tries to focus on the extent Month of the Year effect on efficiency of firms listed on the NSE particularly as an event based study on Covid-19 pandemic. Based on this study, the first objective of the study sought to examine the extent Month of the Year effect on efficiency of firms listed in the NSE. The study used closing monthly prices which were derived from NSE website for the period 2018-2021. From the results of the test carried out, the study established that Month of the Year effect was present and affected the efficiency of the market differently. January and December exhibited higher returns than other months. The study also sought to establish which stocks in the NSE were more prone to the extent month of the year effect on efficiency of firms. Also the study sought to establish which sectors in the NSE were more prone to the extent month of the year effect on efficiency of firms. A test of equality of mean was carried out to determine whether the mean returns for the different stocks and sectors were different. The findings of the test conducted indicated that the following stocks had more positive correlation to month of the year effect; Centum, Co-operative Bank, Absa, KCB, Scangroup, KenGen, KPLC, Scangroup and Stanbic compared to others. There was no single sector that was more prone to month of the year effect than the other. The findings from the analysis established that majority of trading participants had knowledge of market anomalies though also majority were affected during the Covid-19 pandemic. The results of the study contradict the efficient market hypothesis since the study has established month of the year effect is present.
  • Thumbnail Image
    Item
    The Role of fraud management policies in mitigating the severity and reporting of fraud cases in the public sector: the case of county governments in Western Kenya
    (Strathmore University, 2022) Onyango, Brian Omondi
    In the twenty-first century, fraud has become a problem that management and other stakeholders are working hard to resolve. In the Kenyan County Governments, fraud is on the rise, despite ongoing efforts by the office of the auditor general and other state investigative agencies to combat it. This study sough to investigate the role of fraud management policies in mitigating the severity and reporting of fraud cases in the public sector in 11 selected county governments in western Kenya. More specifically, the study sought to investigate the role fraud control plans, mechanisms for reporting fraud and zero-tolerance to fraud policies influence the severity and reporting of fraud cases. The study borrowed from the fraud triangle and deterrence theory to address the general objective. Guided by a positivist research paradigm, primary data using a drop and pick questionnaire were collected from 316 respondents from the 11 county governments who included accountants, external and internal auditors and forensic investigative personnel. The data were analyzed using principal component-factor analyses, spearman correlations and ordered logistic regression approaches. The relevant descriptive and inferential statistics were also employed in the analyses. According to the results, two important fraud management aspects were established: deterrence effect of fraud management policies and fraud case reporting instances. The results illustrate that having an anti-fraud plan with zero tolerance to fraud, an independent fraud reporting system and deploying an integrated macro policy in the fight against fraud are useful mechanisms in deterring and combating the risk of fraud. The results also show that installing a fraud reporting system with real consequences to the offenders leads to an increase in the reporting of fraud cases. In line with the results, a strict anti-fraud plan with zero tolerance to fraud is useful in encouraging more fraud cases to be reported. Further, the deployment of an integrated macro policy on fraud might lead to reduced fraud case reporting. According to the study's findings, county governments in Kenya should adopt fraud management policies to assist in reducing the severity of fraud and help in timely reporting and handing of fraud cases. The findings are useful in informing fraud risk management policies in the counties as well as other public sector entities.
  • Thumbnail Image
    Item
    The Impact of derivatives trading on the liquidity of stocks at the Nairobi Securities Exchange
    (Strathmore University, 2022) Muthanga, Naomi Wangu
    The introduction of derivatives to enhance liquidity of capital markets is an approach that has been adopted both globally and in Africa. In Kenya, CMA granted approval to the NSE to launch and operate NEXT Derivatives Exchange Market which was aimed at facilitating a deeper and more liquid capital market. One of the challenges experienced in the Kenyan financial market is low liquidity levels which has been a constraint towards product and service uptake by investors. This research focused on Single Stock Futures (SSF) for Safaricom Plc, Kenya Commercial Bank Group Plc, Equity Group Holdings Plc, East Africa Breweries Ltd, British American Tobacco Kenya Plc and Absa Bank Kenya PLC.The researcher collected daily share closing price and daily trading volume data for each of the six underlying company stocks from July 4th, 2018, to December 31st, 2021, which was used in the calculation of stock liquidity using the Amihud Price Impact measure considered the best price impact measure of liquidity. A bivariate VAR model containing the variables: liquidity of underlying stock (Ls) and derivatives trading (Ds) was used to test the short run and long run causality between derivatives trading and the liquidity of underlying stocks. This was used to answer the research objective which was to analyze the impact of derivatives trading (Single Stock Futures) on the liquidity of underlying stocks listed at the NSE. The findings of this study show that there was an increase in the liquidity for some of the underlying stocks as measured by the Amihud price impact measure and a decrease in liquidity for some of the underlying stocks six months and one year post derivatives listing. The increase in stock liquidity for Equity Group Holdings Plc can be explained by derivatives trading in the long run and the increase in stock liquidity for East African Breweries Ltd can be explained by derivatives trading in the short run. The increase in stock liquidity can be explained by the increased investment opportunity available to investors through the introduction of derivatives of the underlying stock. Therefore, market regulators like CMA, NSE and NEXT should encourage more companies to participate in the derivatives market increasing the investment opportunities available to investors. Findings of the research also revealed that the derivatives market was operating efficiently since its launch, the relationship between key participants was working effectively, the clearing process was efficient, and the rules and regulations of the derivatives market were sufficient. Finally, investors were keen on participating in the derivatives market which the CMA and NSE can leverage on to increase trading activity at the bourse through the implementation of aggressive campaigns.
  • Thumbnail Image
    Item
    The Influence of leadership styles on the performance of NGOs in the health sector in Nairobi County, Kenya
    (Strathmore University, 2022) Otieno, Maureen Atieno
    Non-governmental organizations play a critical role in the community, especially in the health sector, as most of the research conducted comes from donor funding. Leadership is not the main area of focus in NGOs as there are other life-threatening and other issues to focus on. However, with continuous collaboration and interconnectivity within institutions, there is a dire need to hold leaders accountable for their actions. The purpose of this study was to establish the influence of leadership styles on the organizational performance of NGOs in the health sector in Nairobi County, Kenya. The specific objective included determining the influence of transactional, transformational, and democratic leadership styles on the organizational performance of NGOs in the Health sector in Nairobi County in Kenya. The study was anchored on Stewardship theory and style and behavior theory. A descriptive survey was adopted. The study population consisted of 240 top management team in the health sector NGOs in Nairobi County. The top management team comprised of Country managers; the Chief Executive Officer or Executive Director; the Project Manager or Director; and the Grants Manager or Director. A questionnaire patterned after Multifactor Leadership Questionnaire was used to collect data that was analyzed using SPSS software (SPSS Version 26.0) and the result was presented in tabular form. According to the research findings using descriptive research design, leadership style influences organizational performance but the most influential leadership style was transformational leadership. There were traces of democratic leadership style in the health sector NGOs. The findings also indicated a positive correlation between variables explored in the study. The variation in organizational performance due to transactional, transformational, and democratic leadership was minimal compared to other factors in the health NGO sector. Majority of the leaders in the health sector NGOs were highly educated young professionals. This study was limited to Nairobi County Health Sector NGOs. A further look into the other counties is recommended. The employees indicated that organizational performance was influenced by other factors such as appraisals, goal setting, periodic reviews, employee incentives, knowledge, and skills, change management and innovation and organization culture. A relook into the suggested factors can bring insight into how these factors affect the health sector NGOs. The study was limited to the three-leadership style and recommends that other leadership styles in the health sector NGOs be explored. The study concluded that in general transactional, transformational and democratic leadership style gave organizations a competitive edge that influenced organizational performance positively.
  • Thumbnail Image
    Item
    The Influence of human resource management practices on employee satisfaction in public health institutions: a case of Nairobi county
    (Strathmore University, 2022) Mwihaki, Kariuki Rachael
    Human resources are the backbone for the provision of quality services in every organization. High level of satisfaction among employees brings about a higher level of work force retention and most importantly customer satisfaction. This applies to all sectors including the health sector. The health systems cannot function efficiently without enough skilled and satisfied health workers. There is a global crisis in the health workforce characterized by the rampant strikes pointing to employee dissatisfaction. In order to solve these problems, policies and actions need to address the dynamics of the health labor market and management of the health workforce to enhance employee satisfaction. The purpose of this study was to analyze the influence of human resource management (HRM) practices on employee satisfaction in public health institutions in Nairobi County. The objectives of the study were to find out the influence of training and development on employee satisfaction of public health workers in Nairobi County, to find out the influence of compensation practices on employee satisfaction in the public health sector in Nairobi County and to establish the influence of recruitment and selection on employee satisfaction of public health workers in Nairobi County. This study was anchored on two theories which are the Motivator-Hygiene theory and the Equity theory. The study adopted a cross- sectional descriptive research design and a total of 172 respondents were drawn from the health facilities in Nairobi. Data was collected by administering questionnaires to the respondents and the data collected was edited, cleaned, and coded and analyzed using descriptive analysis techniques such as mean, mode and standard deviation. The study then used a regression analysis model to express the relationship between the independent and dependent variables as well as to estimate the effect of the dependent variables on the independent variable. Results showed that recruitment and selection was the mostly adopted human resource management practice, followed by training and development then compensation as shown by their overall mean scores. On the influence of each (HRM) practice on employee satisfaction, the (HRM) practices: training and development, compensation and recruitment and selection were found to be significant to employee satisfaction in public health institutions in Nairobi County. The study however had limitations, in that it was only limited to three HRM practices and only looked at 3 cadres in the public health sector. The results therefore are not generalizable to all the other HRM practices and other cadres. Further research should therefore be done to find out what influence other HRM practices have on employee satisfaction in public health institutions and in other cadres.