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INDEXED PUBLICATIONS34
CROSSREF CITATIONS58
CROSSREF · CITED PUBLICATIONS64.7%
CROSSREF · MEAN CITATIONS1.71

Crossref citation coverage: 34 / 34 publications (100.0%). Latest observation: 21 Oct 2026, 07:22 UTC. Means and percentages use records with known counts.

Research collection

34 publications

JOURNAL ARTICLE

Influence of relationship management on organizational performance among insurance companies in Kenya

Grace Mwangi · D.M. Gichuhi · S.M Macharia

International Journal of Research in Business and Social Science · 2019

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This study sought to establish the influence of understanding, stakeholder requirements, good rapport with stakeholders, healthy competition with competitors, conflict resolution, and effective communication on organizational performance among insurance companies in Kenya. Positivism research philosophy was adopted for the study. Descriptive and explanatory cross-sectional research designs were used. Data analysis was conducted using descriptive statistics and inferential analysis. The study concluded as follows: (i) Understanding stakeholder requirements, creating and maintain good rapport with stakeholders, healthy competition with competitors, conflict resolution and effective communication were deployed to a moderate extent in insurance companies in Kenya, (ii) There was a strong positive correlation between organisation performance, understanding stakeholder requirements, good rapport with stakeholders, conflict resolution, and effective communication, (iii) There was a weak positive correlation between organisation performance and healthy competition, (iv) Understanding stakeholder requirements, creating and maintain good rapport with stakeholders, healthy competition with competitors, conflict resolution and effective communication had significant influence on the performance of insurance companies in Kenya. (v) Relationship management has a significant influence on organizational performance.

DOI 10.20525/ijrbs.v9i1.5800 Crossref citations3 OpenAlex citations
JOURNAL ARTICLE

Management control system, organizational processes and institutional performance of technical training institutions in Kenya

Clement Karani Mbore · Jane Sang · Joyce Komen

International Journal of Research in Business and Social Science · 2019

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The purpose of this study was to determine the Moderating Effect of Management Control System (MCS) in the relationship between Organisation Processes and Institutional Performance of Technical Training Institutions (TTIs) in Kenya. The study was a cross-sectional survey in nature and used explanatory research design with the population obtained from the TTIs that were registered with the Ministry of Education, Science and Technology (MOEST) and Technical and Vocational Education and Training Authority (TVETA) by 2015. The main research instrument was a closed-ended questionnaire. The hypotheses in this study were tested using Hierarchical Moderated Multiple Regression (MMR) and the study found that organization processes had a significant positive influence on the institutional performance of TTIs in Kenya. The study findings indicated that the estimated coefficient was 0.555 indicating that organization processes had a significant influence on institutional performance. Further, the study found evidence that (i) MCS moderates the relationship between organizational processes and institutional performance, (ii)) MCS had a moderating effect on the relationship between organizational processes and institutional performance of Technical Training Institutions (TTIs) in Kenya.

DOI 10.20525/ijrbs.v8i6.5390 Crossref citations2 OpenAlex citations
JOURNAL ARTICLE

Influence of tax planning on financial performance of manufacturing companies listed at Nairobi Securities Exchange

Simeon Oeta · Richard Kiai · Joseph Muchiri

International Journal of Research in Business and Social Science · 2019

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Taxes form a significant portion of a company’s expenses and in order to increase probable returns, tax planning is vital to financing and investment decisions of an entity. This study sought to find out the influence of tax avoidance on financial performance of all the nine manufacturing firms listed on the Nairobi Securities Exchange during the period 2010-2017. The study was anchored on tax planning theory, capital structure trade-off theory, agency cost theory and political power theory. The study adopted a positivism research philosophy and an explanatory research design. SPSS version 23 was used to analyze data where both descriptive and inferential statistics was done. Multiple linear regression model was adopted to study the association between the variables while utilizing panel data. The study findings showed that there is no significant statistical association between tax planning and financial performance of the manufacturing companies listed in the Nairobi Securities Exchange. The findings indicated that capital intensity, research and development expenditure and company size have a positive insignificant association with financial performance. Further, debt to equity ratio indicated an insignificant negative relationship with financial performance. The study points out that the manufacturing companies should invest more in non-current assets and increase expenditure on the research and development expenditure to realize significant positive impact on financial performance. They should also manage their debt to equity ratios to avoid excess financing costs that may be detrimental to their financial performance.

DOI 10.20525/ijrbs.v8i6.5277 Crossref citations8 OpenAlex citations
JOURNAL ARTICLE

Influence of directive and achievement oriented path-goal leadership styles on employee performance of coffee trading companies in Kenya

Rozmina Rana · George K'Aol · Michael Kirubi

International Journal of Research in Business and Social Science · 2019

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The study sought to examine the extent to which directive and achievement-oriented path-goal leadership styles influence employee performance of coffee trading companies in Kenya. The positivism philosophy was adopted and the design used was a descriptive correlational research design. The population for the study was 180 senior managers of coffee trading companies in Kenya. Descriptive and inferential statistics were used to analyze the data. The descriptive statistics were mean and standard deviation while the inferential statistical analysis included correlational analysis, chi-square and multiple linear regression analysis. The results of the multiple linear regression analysis revealed that directive leadership style negatively and significantly predict employee performance, R2= 0.035, F(1, 114) = 4.141,  p? .05, ? = -0.153, p? .05. Multiple linear regression analysis further revealed that achievement-oriented leadership style positively and significantly predicted employee performance, R2= 0.161, F(1, 116) = 20.686, p ?. .05, ? = 0.391, p? .05. The study provided a unique contribution to the theory and practice of leadership by contributing to knowledge in the application of Path-goal leadership styles in coffee trading companies. The study findings led to the conclusion that the use of a directive leadership style in coffee trading companies can adversely affect performance and leaders should exercise caution if they have to use this style.

DOI 10.20525/ijrbs.v8i6.4783 Crossref citations7 OpenAlex citations
JOURNAL ARTICLE

Influence of directive and supportive leadership styles on employee job satisfaction in commercial banks in in Kenya

Davidson Mghanga Mwaisaka · George K'Aol · Caren Ouma

International Journal of Research in Business and Social Science · 2019

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The purpose of the study was to examine the influence of directive and supportive leadership style on employee job satisfaction in commercial banks in Kenya. The study adopted the positivism research philosophy and descriptive correlational research design.  The target population of the study was 15,030 employees in all the 43 commercial banks licensed to operate in Kenya as of June 2018. Using a stratified sampling technique, the study drew a sample size of 386 employees reporting to middle-level managers. Data was collected by means of a questionnaire and analyzed using descriptive and inferential statistics. Statistical Package for Social Sciences (SPSS) version 20. The results of the study showed that a directive leadership style and supportive leadership styles positively and significantly predicted employee job satisfaction. The results of the regression analysis after moderation showed that environmental contingency factors significantly moderated the relationship between path-goal leadership style and employee job satisfaction.

DOI 10.20525/ijrbs.v8i6.4680 Crossref citations2 OpenAlex citations
JOURNAL ARTICLE

Effect of Learning Goal Orientation on Leadership Development

Emmanuel Mango · Jeremiah Koshal · Caren Ouma

International Journal of Research in Business and Social Science · 2019

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Effective leadership development has eluded many organizations and academia for a long time. Those who have attempted to improve the practice and study of leadership development focus on the same old elements of leadership development. The traditional elements of leadership development that have been studied and implemented previously include: the content of the leadership development programs, the delivery of leadership development programs, the length of the programs and advocating for leadership development programs that are entrenched in leadership theory. Despite numerous studies and implementation of the studies’ findings on leadership development, there exists widespread dissatisfaction with leadership development outcomes. Some scholars have observed that leader developmental readiness may be the missing ingredient in leadership development. Learning goal orientation is one of the five elements of leader developmental readiness. Therefore, this study examines the effect of learning goal orientation on leadership development. The study reveals that learning goal orientation has a significant effect on leadership development, F(1,286) = 62.346, p < 001. In addition, learning goal orientation accounts for 17.9% of the variation in leadership development. Thus, enhancing participants’ learning goal orientation should be part and parcel of any leadership development program in order to improve the effectiveness of leadership development. 

DOI 10.20525/ijrbs.v8i6.4590 Crossref citations2 OpenAlex citations
JOURNAL ARTICLE

Relationship between empathy dimension and customer satisfaction in the insurance industry in Kenya

Catherine Njoki Chege · Kenneth Wanjau · Severina Nkirina

International Journal of Research in Business and Social Science · 2019

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The Insurance industry is essential to the economic course of every nation attaining sustainable growth and prosperity. However, the industry continues to experience a marginal growth of 2.5% compared to the global real term growth of 4%. This study analyzed the relationship between employee empathy and customer satisfaction in the Kenyan insurance industry. The study was guided by the causal research design. The study applied the linear mixed-effect models of structural equation modeling (SEM) considering the multi-level structure of the data collected. The study concluded that a client who perceives empathy from his/ her insurer’s employees is bound to have higher satisfaction than a customer who does not perceive empathy from their insurer. Employee empathy however, does not significantly affect the variations of customer satisfaction between the insurance companies.

DOI 10.20525/ijrbs.v8i6.5775 Crossref citations8 OpenAlex citations
JOURNAL ARTICLE

Management commitment influence on implementation of occupational health and safety policies in water and sanitation companies in Nyeri County, Kenya

Rachel Nderitu · Peter Mwaura · David Gichuhi

International Journal of Research in Business and Social Science · 2019

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Contemporary employees spend most of their working lives in the workplace. Work provides economic, social and psychological experiences that promote the mental wellbeing of individuals. The work environment should be devoid of hazards as much as possible to provide healthy and decent work for the workforce. However, numerous injuries, illnesses, property damages, and process losses take place at different workplaces. It is unclear how effectively OSH programs are being implemented in Kenya’s water sector since no study has been done. The general objective of the study was to establish an influence of management commitment on Occupational Health and Safety policies implementation in Water and Sanitation Companies in Kenya, a study of water and Sanitation Companies in Nyeri County. The study was based on the theoretical foundation that comprises two theories Leader-Member Exchange theory and Bourgeois and Brodwins Five Models of Strategy Implementation. The target population consisted of 474 employees in all water & sanitation companies in Nyeri County. From this population, a sample of 243 respondents was drawn using a random sampling technique but only 188 respondents filled and returned valid questionnaires giving the study an 80% response rate. The study employed both descriptive and inferential statistics to present and analyze the data.  Quantitative data was analyzed using descriptive statistical tools namely frequencies, percentages, mean and standard deviation while inferential statistical tools such as multiple regression were used to determine the relationship between variables. The study findings revealed that there was a statistically significant positive relationship between management commitment and implementation, the 27.9% unit change in the implementation of OSH policies was explained by the management commitment. The study recommends that the water companies’ management should be committed to the implementation of OSH.

DOI 10.20525/ijrbs.v8i6.5694 Crossref citations9 OpenAlex citations
JOURNAL ARTICLE

Stakeholderparticipation influence on tourism performance in West Pokot County

Tulel Cherop Patricia · Beatrice Ombaka · Kariuki Ann

International Journal of Research in Business and Social Science · 2019

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The support of tourism stakeholders is essential for the development, successful operation, and long-term sustainability of tourism. The aim of this paper was to establish how stakeholder involvement influence tourism sector performance the purpose of getting a deeper understanding of what different stakeholders perceive on their involvement and the benefits that they have gotten or brought to the sector. The theory guiding this paper was an integrated model of destination competitiveness. A descriptive research design was used for the study. The target population consisted of employees of hotels, officials of tour firms and officers in the ministry of tourism in the County Government of West Pokot. Systematic stratified sampling was used and a total of 41 respondents selected. Structured questionnaires were used to collect data from the respondents. Data were analyzed using descriptive and inferential statistics. From the R2 was 0.444 meaning that Stakeholder participation predicted 44.4% of tourism performance in West Pokot County and therefore the Counter government should always consider the stakeholders in matters to do with tourism so as to improve its performance.

DOI 10.20525/ijrbs.v8i6.5241 Crossref citations1 OpenAlex citations
JOURNAL ARTICLE

Government’s role as moderator in relationship of porter’s diamond factor conditions and firm’s performance

Muhammad Ahmed Butt · Paul Katuse · Juliana Namada

International Journal of Research in Business and Social Science · 2019

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The study's purpose was to investigate through empirical research the moderating role of government in the relationship of porter diamond factor conditions attribute and firm’s performance in the automotive industry of Pakistan. The research methodology used positivism philosophy, a pilot study carried out to determine the reliability and validity of the instrument. The descriptive and inferential statistics constituted an integral part of statistical analysis. 194 samples selected through random sampling, a self-administered questionnaire was served to them, 166 responses received and studied. For moderation macro, PROCESS v3.0 (model 1) used to test the hypothesis. The findings of the study indicate the absence of such a study in the auto industry of Pakistan. Government policy influenced the firm’s performance in the automotive industry. Government policy did not play a moderating role in the relationship of porter diamond factor conditions determinant and firm’s performance. Theoretical implications reflect that the government's role as a moderator between the relationship of porter diamond factor conditions and the firm’s performance remained not significant. Practical implications indicate that government policy has influence over the firm’s performance, nonetheless, government policy’s mediating role between porter’s diamond factor conditions and firm’s performance have no effect. Moderation results provided a theoretical and practical context for academia, industry players, and policymakers

DOI 10.20525/ijrbs.v8i6.5100 Crossref citations1 OpenAlex citations
JOURNAL ARTICLE

Ownership structure, bank stability and the financial performance of commercial banks in South Sudan

Bak Barnaba Chol · Elizabeth Kalunda Nthambi · Joseph N Kamau

International Journal of Research in Business and Social Science · 2019

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Since independence in 2011 the Republic of South Sudan has witnessed growth in the financial systems and the overall economy. This has led to growth in the number of the financial institutions in the country. There is however minimal research on their overall performance. Hence the current research sought to determine the effect of ownership structure, bank stability and the financial performance of commercial banks in South Sudan. The population for the study was all the 29 commercial banks in South Sudan. Secondary data was collected for the period 2012-2017 from audited annual financial reports of individual banks and from the Central Bank of South Sudan reports while primary data was collected by use of a semi-structured questionnaire. The research utilized both descriptive and inferential statistical methods in the analysis. The statistical tests to be utilized in the study included t-tests, f-test, regression models and ANOVA models. The results of the study indicated there was a statistically significant moderating effect of ownership structure on the financial performance of commercial banks in South Sudan. The study recommends that the government should adopt better measures to safeguard public owned commercial banks to improve their efficiency and performance.

DOI 10.20525/ijrbs.v8i6.5090 Crossref citations0 OpenAlex citations
JOURNAL ARTICLE

Analysis of health seeking behaviour on effective delivery of health services under capitation scheme in Kenya

Priscilla Nduku Wangai · Amos Njuguna · Joseph Ngugi

International Journal of Research in Business and Social Science · 2019

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Under capitation health scheme, a member freely selects a health facility from which to seek health services. There is no restriction of the number of times a member seeks health services from the facility within the contract period. This has affected delivery of health service under capitation contracting. This paper documents a quantitative analysis of the effect of health seeking behaviour on effective delivery of health services. Since human behaviour is assumed to be a natural phenomena, a philosophical view of positivism w?s ?dopted in this research. Accordingly, a scientific approach was used to deduce the influence of health seeking behaviour on the metrics of effectiveness. Out of 1152 health facilities accredited to offer primary healthcare in Kenya, data was collected from a sample of 297 health units using closed ended questionnaires. Logit regression analysis on the data revealed that congestion in out-patient department had a negative effect on quality of health services delivered but a positive effect on accessibility and affordability of the services. Increased frequency of consultation had a negative effect on all the three measures of effectiveness; quality, accessibility and affordability of health service delivery. Corresponding odds ratios were 0.173, 1.105 and 1.295 respectively.

DOI 10.20525/ijrbs.v8i6.5020 Crossref citations0 OpenAlex citations
JOURNAL ARTICLE

Differentiation strategy, firm structure and performance of star rated hotels

Jane Nyokabi Njuguna · Juliana Namada · Maina Muchara

International Journal of Research in Business and Social Science · 2019

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It is estimated that emerging economies will get over 1 billion international tourists by the year 2030. Strategic management researchers have severally recommended credible research in the area of strategy-structure coalignment in the hospitality industry. The purpose of this study was to analyze the influence of differentiation strategy-firm structure coalignment on performance of star rated hotels in Kenya. This study adopted positivism research philosophy and a descriptive-correlative research design. The population consisted of general managers and functional managers from Kenya’s three, four and five star rated vacation and town hotels as at 2018. Multi-stage sampling that included proportionate stratified sampling and simple random sampling was used. 267 hotel managers were sampled out of which 253 managers responded. The extent to which the hotels were pursuing differentiation strategy was measured by an analysis of the responses to the multi-item Likert scale questionnaire. Structural equation modeling was used for hypothesis testing. The study concluded that differentiation strategy-firm structure coalignment has no significant influence on performance of star rated hotels in Kenya. The study however revealed that differentiation strategy directly and positively affects hotel performance. This study recommends hotel managers to pursue a differentiation strategy that sets their hotel apart from others as this has direct positive effects on the performance of hotels.

DOI 10.20525/ijrbs.v8i6.4982 Crossref citations4 OpenAlex citations
JOURNAL ARTICLE

Influence of Inspirational Motivation on Employee Job Performance in the Insurance Industry in Kenya

Geoffrey Kipkirui Langat · Teresia K Linge · Damary Sikalieh

International Journal of Research in Business and Social Science · 2019

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This study had two research questions as follows: What is the influence of inspirational motivation on employee job performance? To what extent does employee work value congruence moderate the relationship between transformational leadership and employee job performance? This study adopted the positivism research philosophy and correlation research design. The target population of the study was 676 lower-level managers from 52 insurance companies operating in Kenya as of 2017. A sample size of 245 was drawn using a stratified random sampling technique and systematic sampling. 245 questionnaires were distributed out of which 211 were completed and returned representing a response rate of 86% which was deemed as adequate for a correlation research design. The analysis of variance was used to test the hypothesis. The study concluded that inspirational motivation significantly predicted employee job performance. In addition, it was deduced that employee work value congruence had a significant moderating effect on the relationship between transformational leadership and employee job performance among lower-level managers in the insurance sector in Kenya. The study recommended that employees should tailor their values to fit into the culture and values of the organization for the organization to profit from transformational leadership.

DOI 10.20525/ijrbs.v8i6.4881 Crossref citations14 OpenAlex citations
JOURNAL ARTICLE

Moderating role of transformational leadership styles of hospital management boards on adoption of mobile health innovations by hospitals in Kenya

Bahati Prince Ngongo · Phares Ochola · Joyce Ndegwa · Paul Katuse

International Journal of Research in Business and Social Science · 2019

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Sub-Saharan Africa lags other regions in the adoption of both Patient-Centered (PC) and Facility Centered (FC) mobile health (m-health) applications. Transformational Leadership Style (TLS) of Hospital Management Boards (HMBs) is catalytic for the adoption of disruptive technologies such as m-health by hospitals. There is limited evidence on the effect of TLS of HMBs in the adoption of innovations in Low- and Middle-Income Countries (LMICS). This study investigated the moderating role of TLS of HMBs on the adoption of PC and FC m-health by hospitals in Kenya. It used the Logit Regression Model to test null hypotheses that the four constructs of TLS (Idealized Influence (II), Individualized Consideration (IC), Inspirational Motivation (IM), Intellectual Stimulation (IS)) individually or combined had no significant moderating effect on adoption of PC and FC m-health applications.  Primary data was collected from a representative sample size of 211 Top Executives (TEs) of level 4 to 6 hospitals who evaluated the TLS of their HMBs on m-health adoption. At a 5% level of significance, the study found that only the combined application of the four constructs (II, IC, IM, IS) significantly moderated the adoption of PC m-health (p=0.046) but did not moderate FC m-health (p=0.345). Each incremental application of TLS would increase the odds of adopting PC m-health by 1.002 but not for FC. Therefore, this study recommends the capacity strengthening of HMBs in TLS to scale up PC m-health adoption in Kenya and other LMICs. It also recommends a differentiated approach to policies, practices, and theories of adoption of innovations using the PC-FC models.

DOI 10.20525/ijrbs.v8i5.4744 Crossref citations4 OpenAlex citations
JOURNAL ARTICLE

Influence of idealized influence on employee job performance in the insurance industry in Kenya

Geoffrey Kipkirui Langat · Teresia K Linge · Damary Sikalieh

International Journal of Research in Business and Social Science · 2019

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The research objectives of this study were two. The first one was to determine the influence of idealizing influence on employee job performance. The second objective of the study was to determine if employee work value congruence moderated the relationship between transformational leadership style and employee job performance. This study adopted the positivism research philosophy and correlation research design. The target population of the study was 676 lower-level managers from 52 insurance companies operating in Kenya as of 2017. A sample size of 245 was drawn using a stratified random sampling technique and systematic sampling. 245 questionnaires were distributed out of which 211 were completed and returned representing a response rate of 86% which was deemed as adequate for a correlation research design. The analysis of variance was used to test the hypothesis. The study concluded that idealized influence significantly predicted employee job performance. In addition, the study inferred that employee work value congruence had a significant moderating effect on the relationship between transformational leadership and employee job performance among lower-level managers in the Insurance sector in Kenya. The study recommended that leaders should observe values that are congruent with that of their organization and socialize their employees on the same so that there is enhanced transformational leadership effectiveness.

DOI 10.20525/ijrbs.v8i5.4864 Crossref citations16 OpenAlex citations
JOURNAL ARTICLE

Influence of bank stability on the financial performance of commercial banks in South Sudan

Bak Barnaba Chol · Elizabeth Kalunda Nthambi · Joseph N Kamau

International Journal of Research in Business and Social Science · 2019

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Despite increasing bank competitiveness within the country for the past half-decade there has been scant literature examining their stability in the face of the numerous internal factors and economic shocks. Hence the current research aims to determine if bank stability has any effect on commercial bank’s fiscal performance in South Sudan. The study was guided by the CAMEL model metrics (ROA and ROE) in measuring stability and its influence on the monetary performance of commercial banks. SPSS 23 was used to carry out subsequent descriptive and inferential statistical analysis. The study was primarily grounded on the CAMEL model.  The correlation tests indicated that asset quality had a strong positive effect on monetary performance of commercial banks p= .784; a strong positive effect of management efficiency p= .758 and liquidity p= .620.

DOI 10.20525/ijrbs.v8i5.4670 Crossref citations0 OpenAlex citations
JOURNAL ARTICLE

Relationship between corruption and capital flight in Kenya: 1998-2018

Mercy Mwangi · Amos Njuguna · George Achoki

International Journal of Research in Business and Social Science · 2019

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The study established the relationship between corruption and capital flight in Kenya over the period 1998 to 2018. Quarterly time series data for calculation of capital flight and for GDP growth rate and exchange rates were collected from the Central Bank of Kenya and Kenya National Bureau of Statistics. Corruption perception index data was collected from the Transparency International website. Two Autoregressive Distributed-lagged models were fitted. Regression coefficients for corruption were -0.114 and 0.066 in the short run and -0.501 in the long run and the p values were 0.523 and 0.691 and 0.558 respectively, indicating no significant relationship. Regression results showed a coefficient of 0.01 and 0.003 for the Gross Domestic Product growth rate in the short run, and 0.049 in the long run. The p values were 0.670, 0.855 and 0.578 respectively denoting no significant relationship. Regression results showed a coefficient of 0.002 and 0.003 for the exchange rate in the short run, 0.43 for the exchange rate in the long run. The p values were 0.891 and 0.584 and 0.095 respectively indicating that a one % increase in the exchange rate would lead to a 0.043 % increase in capital flight in the long run. Regression results of lagged capital flight on capital flight showed a coefficient of 0.904. The p-value was 0.000 meaning that a one % increase in lagged capital flight would lead to a 0.904 % increase in capital flight. The study recommended that the government devises policies that would prevent further capital flight and generate capital flight reversal.

DOI 10.20525/ijrbs.v8i5.3181 Crossref citations5 OpenAlex citations
JOURNAL ARTICLE

Shareholder loyalty and firm value creating outcomes in Kenya

Amos Muhinga Kimunya · Amos Njuguna · Francis Wambalamba

International Journal of Research in Business and Social Science · 2019

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The study aimed at examining the effect of shareholder loyalty on firm value-creating outcomes in Kenya.  The study used a sample of 117 institutional shareholders in listed firms in Kenya. Data was collected through questionnaires and analyzed using descriptive statistics such as mean, mode, and median and inferential statistics including factor analysis, regression, and analysis of variance (ANOVA). The study concluded that shareholder loyalty has no significant effect on firm value-creating outcomes. The study contributes to the literature on shareholder engagement, particulary on shareholder loyalty from a Kenyan angle. Shareholders are advised to consider their initial cost of investment, costs, and penalties on exit and impact on their business interests with the firm as they decide on their voice or exit actions.

DOI 10.20525/ijrbs.v8i5.3130 Crossref citations0 OpenAlex citations
JOURNAL ARTICLE

Effect of leverage and firm size on financial performance of deposit taking savings and credit cooperatives in Kenya

Robert lukhanda Shibutse · Elizabeth Kalunda · George Achoki

International Journal of Research in Business and Social Science · 2019

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Critical to the success of financial institutions' performance is there Capital Structure. The study aimed to, investigate the effect of two capital structure determinants, leverage, and firm size on financial performance as measured by Return on Assets of Deposit Taking Savings and Credit Cooperative Societies in Kenya. The study was grounded on Tradeoff, Pecking order, and Mogdiliani and Miller capital structure theories. A positivist approach was adopted utilizing a mixed-method research design. The population of the research study was 174 Deposit Taking Savings and Credit Cooperative Societies from whom primary and secondary data was collected. A stratified and purposive sampling technique was employed. Descriptive statistics and a regression model were used to analyze the data. The results revealed that firm size had a significant and positive effect on financial performance, whereas Leverage, had a significant but negative effect on financial performance. The study recommends having in place an Assets and Liabilities committee in each Deposit Taking Savings and Credit Cooperative Society that would help manage the assets and liabilities of the institution, ensuring sound liquidity and cash flow management. Critical factors that contribute to a firm size such as increased membership, deposits mobilization amongst others need to be addressed.

DOI 10.20525/ijrbs.v8i5.4624 Crossref citations18 OpenAlex citations