MCOM Theses and Dissertations (2012)

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    The effects of bank characteristics on market risk disclosure : case of listed commercial banks in Kenya
    (Strathmore University, 2012) Wahome, Millicent Nyawira
    The purpose of this study was to determine the effects of bank characteristics on market risk disclosure. Commercial banks need to be regularly monitored in order to monitor, manage and evaluate risky activities that may lead to loss of depositors’ funds or collapse the financial intermediation system. The relationship between four bank characteristics namely size of a bank, profitability of a bank, leverage of a bank and depositors’ knowledge were modeled against market risk disclosure. Both primary and secondary data were obtained for this study. Primary data was obtained through the use of questionnaires from depositors of listed commercial banks while secondary data was collected from financial reports, notes to accounts, Chairman’s and CEO’s reports and from Nairobi Securities Exchange for the years 2004 to 2009. The study found that 68% of variation in Market risk disclosure can be explained by size, profitability and leverage and depositors knowledge. The study also sought to compare market risk disclosure patterns before and after IFRS adoption. Before adoption of IFRS, larger banks and more profitable banks disclosed more market risks that they faced while highly leveraged banks disclosed less compared to the less leveraged banks. It was established that profitability and depositors knowledge were significant and positively influenced market risk disclosure while size of the bank and leverage were insignificant at 5% level of significance. The study also revealed that after adoption of IFRS disclosure standards, more profitable banks were more likely to disclose more market risks information than less profitable banks. In addition, highly leveraged banks have lower market risk disclosure levels compared to less leveraged banks. The study concluded that adoption of IRFS disclosure standards played a significant role in improving market risk disclosure. Profitability continued to play a critical role in signalling their superior performance and sound risk management while depositors’ knowledge increased respondents’ confidence in commercial banks. The study recommends a bigger sample and more bank characteristics should be studied in order to confirm or reject the findings of this study.
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    An exploratory study on the relationship between marketing mix decisions and the success of micro and small enterprises: a case study of Westlands Shopping Centre, Nairobi
    (Strathmore University, 2012) Otieno, Dorcas Awiti
    This study set out to explore the relationship between marketing mix decisions and the success of micro and small enterprises. This main objective was broken down to 3 specific objectives: to understand the general characteristics and general marketing environment of Micro and Small Enterprises (MSEs) in Westlands; examine the significance of the correlation between marketing mix elements and success of micro and small enterprises; and observe and understand the combinations of the marketing mix elements relevant to success within specific industries in the MSE sector. The study was carried out in Westlands shopping centre that has a population of about 400 MSEs. The study was exploratory in nature and thirty one businesses were used for analysis. Purposive sampling was used to derive the final sample. Minitab and Microsoft Excel were used to arrange and analyse the data. Responding to research, this study categorised MSEs into four distinct categories. General characteristics such as, age, experience, motivation and challenges were comparable across groups. The study added to literature by establishing that there are indeed significant industry differences among MSEs and this does indeed affect their marketing activities. All categories except professionals relied on the consumer market. Variability across all categories in terms of the number of marketing activities employed was significantly different for all the marketing elements except distribution. Also, the versatility in marketing activities across groups was significant. Traders were the most versatile category followed by professionals, entertainment houses and artisans respectively. In terms of success, the only significant differentiator was in the self-claimed definition of success (objective versus subjective). Otherwise, across groups there was no real difference in the exhibition of the success variables given by the research. However, there were tendencies that could be further explored in later research. The relationship between the type of customer and the level of marketing done is an area that could be studied. Further, the tendencies of exhibiting certain variables in success by specific industries should be studied. A study on how business orientation affects the marketing activities done would also be a good area to study especially for successful MSEs.
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    Bank efficiency in Kenya
    (Strathmore University, 2012-04) Maloba, Paul Eserea
    Banks in their role of financial intermediation facilitate transfer of funds from surplus units to deficit units. Efficient banking institutions therefore ensure that allocation of funds is prioritized to viable investments and thus spur economic growth. This study employs a non-parametric DEA methodology to measure efficiency levels of Kenyan banks over the period 2004 to 2010. The differences in efficiency between foreign banks and domestic banks are then evaluated. Further, the study sought to establish the sources of bank efficiency for banks in Kenya. Foreign banks were found to be more efficient compared to domestic banks. However, an analysis of efficiency based on bank size reveal that large domestic banks are more efficient compared to large foreign banks. Estimation results further suggest that foreign banks import systemic inefficiencies. Foreign banks were found to have an appetite for government securities, further investigation is necessary to establish the motivation by foreign banks towards government securities.
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    Corporate internet reporting practices by companies listed on the Nairobi stock exchange
    Kang'otole, Johnstone Kimanzi; Waweru, Nelson (Dr.)
    This study‟s main objectives are to establish the current internet reporting practices, ascertain the factors perceived to be influencing Corporate Internet Reporting (CIR) by the companies quoted on the Nairobi Stock Exchange (NSE) and explore the benefits and limitations of CIR as faced by the companies listed on the NSE. The sample of this study comprised the 30 listed companies that had accessible websites and responded to the study questionnaire. This study analysed the contents of all the 30 companies‟ websites to ascertain the nature and extent of current internet reporting practices by the companies listed on the NSE. Data for this study was collected in two stages. First the information disclosed by companies on their websites was checked against a disclosure index. The second stage was via a self-administered questionnaire sent to the companies with accessible websites. The questionnaires were administered in June 2011. The resulting data was then analysed and the results presented in charts and figures. The results obtained led to the conclusion that profitability, industry competition; growth rate and corporate size were the important factors influencing CIR by the listed companies on the NSE. The result of this study makes the following contribution to the knowledge of CIR on the NSE. Firstly, this study will be of help to the listed companies by aiding them in establishing better online reporting practices especially in this era of unprecedented internet revolution in Kenya. Secondly other companies in different industries will be able to tap the knowledge from this study to build into the reporting practices they are currently using. Further, the results of this study might be useful to the standardising or regulating bodies in Kenya in formulating policies to govern and guide online disclosure for all companies listed on the stock exchange market. Finally, the study results will act as a guide to stimulate further research on CIR or into other related subject matter.
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    The influence of human resource management practices on firm performance in the Kenyan banking industry
    Shitsama, Belinda Masitsa
    Over the last decade, much research has been conducted in the field of human resource management (HRM) and its associations with firm performance. For firms to survive in a global economy in the new millennium, they need to exploit all the available resources as a means of achieving competitive advantage. One resource recognized as providing a source of competitive advantage is the human resources of the firm. The main objective of this study was to establish the inf1uence of human resource management practices on performance ofbanks in Kenya.The specific objective of this study was to; establish the effect of selection and recruitment on performance; to gauge the effect of training and development on firm performance, to determine the effect of performance appraisal and compensation management on firm performance.The research used a descriptive quantitative approach. The target population of this study was all the 43 banks in Kenya. Piloting was carried out to test the validity and reliability of the instrument (questionnaire). The researcher perused the completed research instruments and document analysis recording sheets. Quantitative data collected using questionnaires was analyzed by the use of descriptive statistics using SPSS (Statistical Package for Social Sciences) and was presented through percentages, means and frequencies. The findings show that recruitment and selection is effective but is done less often in the banks and that the application of the right practices in recruitment and selection enhances organizational performance. The study also found out that training and development alongside performance appraisals also affect performance of the commercial banks. On the same note, the study established that rewardl compensation affect the performance in the banks. The findings revealed that the banks had performance appraisal systems and were effective. The developmental purpose of performance appraisal is more productive in inf1uencing organizational performance. Finally, the study established that for a remarkable firm performance, constant fixed salaries are better than higher ones, and irregular hourly rates and bonuses should be distributed to all employees who have helped the organization achieve goals.