-
Effect of Unsecured Commercial Bank Loans on Financial Performance of Savings and Credit Co-Operative Societies in Kenya
Everlyn Ninga Munene,
James Muchiri Ndambiri,
Stephen Muthii Wanjohi
Issue:
Volume 4, Issue 1, March 2019
Pages:
1-14
Received:
26 October 2018
Accepted:
24 January 2019
Published:
28 February 2019
Abstract: Changes that occur in the co-operative sector affect the development of the country and the general welfare of the members. Given the increasing aggressiveness by commercial banks in Kenya to offer unsecured loans to both their clients and non-clients and their marketing techniques that ensures wide coverage, then there is likelihood of the unsecured commercial bank loans affecting the financial performance of Savings and Credit Co-operative Societies in Kenya. Thus the general objective of this study was to establish the effect of unsecured commercial bank loans on financial performance of Savings and Credit Co-operative Societies in Kenya. The specific objectives of the study were to establish the effect of unsecured commercial banks loan amount, loan interest rate and loan tenure on financial performance of Savings and Credit Co-operative Societies in Kenya. The research adopted a causal research design. The population of the study was the 177 licensed deposit taking Savings and Credit Co-operative Societies and 43 licensed commercial banks in Kenya as at 2015. Secondary data was obtained from Savings and Credit Co-operative Societies Regulatory Authority Annual Supervision Reports and Central Bank of Kenya Bank Supervision Reports using data collection checklist. The study established that unsecured commercial banks loan amount and loan interest rates had a positive significant effect on financial performance of Savings and Credit Co-operative Societies with P-values of 0.004 and 0.03 and coefficients of 0.006468 and 0.013 respectively. Unsecured commercial banks loan tenure had a negative significant effect on financial performance of Savings and Credit Co-operative Societies with a P-value of 0.018 and a coefficient of -0.74. The findings of this study would be of benefit to the management and policy makers of Savings and Credit Co-operative Societies in formulating policies that would ensure they remain competitive amidst competition from commercial banks.
Abstract: Changes that occur in the co-operative sector affect the development of the country and the general welfare of the members. Given the increasing aggressiveness by commercial banks in Kenya to offer unsecured loans to both their clients and non-clients and their marketing techniques that ensures wide coverage, then there is likelihood of the unsecur...
Show More
-
Foreign Direct Investment (FDI) and Nigerian Economic Growth
Theophilus Okonkwo Okegbe,
Raymond Asika Ezejiofor,
Darlington Ifeanyi Ofurum
Issue:
Volume 4, Issue 1, March 2019
Pages:
15-23
Received:
26 December 2018
Accepted:
25 January 2019
Published:
14 March 2019
Abstract: This study evaluated the extent to which Foreign Direct Investment (FDI) has contributed to the Gross Domestic Product (GDP) in Nigeria from 2000 to 2017. In the course of this study, three hypotheses were formulated in line with the objectives of the study. Ex-Post Facto research design was employed for the study. Regression analysis technique was adopted with the aid of E-view version 9.0 in testing the hypotheses. The study revealed that foreign direct investment on financial sector has positive and significantly affected Gross Domestic Product in Nigeria. It also showed that Foreign Direct Investment on oil sector has positive and significantly affected Gross Domestic Product in Nigeria. Another finding is that Foreign Direct Investment on non-oil sector has positive and significantly affected Gross Domestic Product in Nigeria. the study therefore conclude that inflow of FDI into the Nigerian economy for the stipulated period this research was carried out (2000-2017), showed that FDI was a major contributor to economic growth of the nation Based on the findings, the researcher recommended among other things that Policy makers should devise strategies to increase the FDI on financial sector and offer incentive for long investing and listing on the stock market so that the main objective of the government to stimulate growth will be fulfilled.
Abstract: This study evaluated the extent to which Foreign Direct Investment (FDI) has contributed to the Gross Domestic Product (GDP) in Nigeria from 2000 to 2017. In the course of this study, three hypotheses were formulated in line with the objectives of the study. Ex-Post Facto research design was employed for the study. Regression analysis technique was...
Show More
-
Corporate Governance and Firm’s Compliance on Disclosure of International Financial Reporting Standards–Indonesian Evidence
Issue:
Volume 4, Issue 1, March 2019
Pages:
24-33
Received:
21 February 2019
Accepted:
4 April 2019
Published:
6 May 2019
Abstract: This paper describes empirical research which investigateshow corporate governance (CG) affects the compliance level of disclosure for International Financial Reporting Standards (IFRS) in 2013 and 2014, the two yearsafter full IFRS adoption. The CGis proxy by the board’s structure, characteristics of an audit committee, and shares ownership structure, whereas IFRS disclosure’s level of compliance is measured by disclosure index. This research uses ordinary least square to investigate the effect of corporate governance on the level of IFRS disclosurecompliance along with profitability, industry, and leverage as control variables. This research finds that five elements of CG characteristics which are board’s independence, board’s size, audit committee’sindependence, audit committee’s size, and management’s ownershippositively affect the level of IFRS disclosurecompliance. Yet, the block holder’s ownership negatively affects the compliance level of IFRS disclosure, whereas government ownershipdoes not affect the compliance level of IFRS disclosure. This study provides additional evidence about the association of CG and the level of IFRS disclosure compliance by using Indonesian data. Furthermore, involvingfive elements of corporate governance mechanisms, this study provide additional finding about corporate governance comprehensively. Finally, this research provides values for all users of information including standard setters and other regulators to enhance reporting quality standards in Indonesia.
Abstract: This paper describes empirical research which investigateshow corporate governance (CG) affects the compliance level of disclosure for International Financial Reporting Standards (IFRS) in 2013 and 2014, the two yearsafter full IFRS adoption. The CGis proxy by the board’s structure, characteristics of an audit committee, and shares ownership struct...
Show More
-
Analysis of Financial Performance and Sustainability of Microfinance Institutions in Ghana
Emmanuel Atta Anaman,
Mavis Pobbi
Issue:
Volume 4, Issue 1, March 2019
Pages:
34-43
Received:
7 April 2019
Accepted:
23 May 2019
Published:
12 June 2019
Abstract: Microfinance has become crucial to Ghana's financial system over the last three decades. They target the financially excluded and poverty stricken population with micro financial products, empowering the poor to create livelihoods for themselves and by so doing contributing towards the economic growth of the country. In recent years, there have been reported cases of the collapse of several microfinance institutions and others facing serious challenges. These series of events signal an ominous situation for the microfinance subsector and the entire financial system for that matter. This study therefore aims at examining the performance of microfinance institutions in Ghana, focusing on three key performance indicators; profitability, liquidity and credit advanced. The study revealed that loan default and interest expenses are the major variables which negatively affect the performance of the MFIs. In ensuring the sustenance of the microfinance subsector of the financial system, the study recommends that, the MFIs should adopt lending methodologies which minimize loan defaults and the Bank of Ghana should be encouraged to strength its regulatory oversight and power to rein in MFIs which offer outrageous rates of return on customers' deposits.
Abstract: Microfinance has become crucial to Ghana's financial system over the last three decades. They target the financially excluded and poverty stricken population with micro financial products, empowering the poor to create livelihoods for themselves and by so doing contributing towards the economic growth of the country. In recent years, there have bee...
Show More
