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- ItemThe Effects of technology adoption on millennial entrepreneurship(Strathmore University, 2018) Githinji, Magdaline WangariInformation Technology has made considerable inroads in organizations and enterprises. This diffusion of technology has been credited with significant cost reductions, gains in productivity, organizational effectiveness and in some cases a definite competitive advantage (Earl, 1989). This study sought to bring out the various aspects of technology adopted in an enterprise and their impact on the growth and profitability on the firm. The aspects considered were Managing accounts/bookkeeping, managing inventory, online banking, online sale of business products, The results of the study obtained that there exists a linear relationship between the adoption of technology and the returns of the company. This relationship exists positively for all variables used in this study. This finding offers a valuable insight to entrepreneurs and provides a strategic direction of adopting technology to optimize the performance of the firm
- ItemThe Price-concentration relationship in the banking industry in Kenya(Strathmore University, 2018) Zawadi, Emma AwichThe objective of the study is to examine market structure performance hypothesis in banking industry in Kenya. Specifically, the structure-conduct-performance (SCP) and market efficiency hypotheses were examined to determine how market concentration and efficiency affect bank performance in Kenya. The study used secondary data the Return on assets, return on equity, market share, total bank assets, capital to asset lending ratio, lending to deposit ratio, lending to asset ratio of 43 commercial banks operating from 2012-2016.The proxies used to measure bank performance were Return on Assets and Return on equity while market concentration and market share were used as proxies for market structure. Market concentration was measured using the Herfindahl-Hirschman Index, while market share was used as a proxy for efficiency. The study used the generalized least squares regression method. The findings of the study reveal that there is no strong evidence to support the SCP hypothesis in the Kenyan banking industry as the coefficient for market concentration measured by the HHl index was found to be insufficient to explain market performance. On the other hand, market share was seen to have a significant impact on bank performance indicating that more efficient banks with higher market share, earn more profits.
- ItemThe Effect of demographic transition on the equity risk premium in Kenya(Strathmore University, 2018) Nanua, Kendi GloriaWhile a multitude of research has focused on the effects of demographics on asset prices and returns in developed countries, the same lacks in frontier and emerging countries. The findings and conclusions of such results however cannot be replicated across developing countries since their demographic characteristics are different. In developed countries, the fertility rates are lower than in their counterparts leading therefore to a lower middle-old ratio. Such demographic characteristics affect asset prices and returns differently. Where researchers have considered demographics in developing countries, only output and the impact of macroeconomic variables is considered (see for instance Thuku, Gachanja, & Obere, 201 3). Additionally, over time the only demographic variable under consideration, on its effect on the economy, has been population growth. While population growth is a key variable in analyzing the effect of demographics, there are other variables pertaining to demographics that are occasionally overlooked. Such variables include life expectancy, age structure, dependency ratios and fertility rates. There therefore exists a gap in that, the investigation of the effect of demographics on financial markets in emerging and frontier markets is scarce. This study is an attempt to fill this gap by particularly looking at the effect of demographic variables on the equity risk premium in an emerging market.
- ItemRole of agency banking in facilitating financial inclusion in Kenya(Strathmore University, 2018) Mutua, Eugene NziokaThe research project set forth to evaluate the role played by agency banking in facilitating financial inclusion. The sole objectives of the study were to study and evaluate the effects of the number of agents employed and the effects of bill payments on financial inclusion in Kenya. Secondary data in the CBK annual reports was used in the analysis stage. The sample size was 17 out of 42 commercial banks that constitute banking sector as at December, 2015. Data analysis was done using Stata. The study used correlation analysis, homoscedasticity test, normality test, unit root test and regression analysis to determine the relationship between correspondent banking and financial inclusion. The results revealed that agency banking had a significant positive relationship with financial inclusion. It was concluded that agency banking had no effect on financial inclusion. It was therefore recommended that commercial banks should equip agents with the necessary expertise to conduct due diligence on potential customers who wish to open bank accounts
- ItemPrice and liquidity effects of stock splits on shares(Strathmore University, 2018) Barasa, Sandra AkochiFama et al. ( 1969) defined a stock split as an exchange of shares in which at least five shares were distributed for every four formerly outstanding, which means that shareholders get additional shares for every share previously held. Nevertheless, given that splitting is not costless and the result is to multiply the number of shares per shareholder without increasing the shareholder's capital, why then do firms split their shares? This project questions the effects of stock splits with a focus on the price and the liquidity effects. The main objectives of the study were to determine the effect of stock splits on the price of the shares after the split announcement is made and to also determine the liquidity effects of stock splits in the stock market. The study used the event study methodology and the student t-statistic to test for price and liquidity effects on a sample of 7 listed companies from the Nairobi Securities Exchange, using historical prices and trading volume respectively. An event window of 81 days, including the day of announcement was used in the study. For price effects, the study concluded that stock splits cause an increase on the prices of shares as was evidenced by the 7 sampled firms. For liquidity, the findings were inclusive given the varying effects from the sampled firms. The main limitation for the study was the small sample size