Browsing by Author "Gitagia, Francis K."

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    Dividend Decisions, Economic Growth and Firm’s Value of Firms Listed at Nairobi Securities Exchange Kenya
    (International Knowledge Sharing Platform, 2020) Gitagia, Francis K.; Wamugo, Lucy; Omagwa, Job
    The declining and highly volatile firm value observed in the NSE over the last decade has raised concern among scholars and financial practitioners. A declining and turbulent firm value implies lost and unstable shareholders wealth which in turn increases risk to the stock holders. It is therefore important to ensure that the firm value is enhanced to ensure growth and stable wealth of the shareholders. The study was carried out to determine the effect of dividend decisions, economic growth and firms’ value of selected firms listed at Nairobi securities exchange Kenya. The target population was the 46 non-financial companies listed in the NSE. A census of all non-financial firms listed in the Nairobi Securities Exchange was done. The study utilized secondary data from financial reports as published in the NSE handbook and Kenya National Bureau of Statistics for the period between 2008 and 2016. Panel regressions analysis and Pearson’s product moment correlation analysis were used for inferential analysis while means and standard deviations were used for purposes of descriptive analysis. Feasible Generalized Least Square (FGLS) regression results indicated that dividend decisions (p=0.012, <0.05) had a statistically significant positive effect on firm value. Whisman test of moderation further indicated that GDP had significant positive moderation effect on the relationship between each of the dividend decisions and the firm value. The study concludes that; dividend yield has a very strong positive relationship with firm value. That is, increases/decreases in dividend yield will be accompanied by increases/decreases in firm value. The study therefore recommends that corporate managers increase the dividend payout in times of profitability
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    Financial Innovations and Cost Efficiency of Commercial Banks in Kenya
    (International Academic Journal of Economics and Finance (IAJEF), 2025-11) Otondi, Faith Moraa; Gitagia, Francis K.
    Kenyan commercial banks have adopted various innovations, yet challenges in optimizing costs under inflationary pressures persist. This study examined the effect of financial innovations on the cost efficiency of commercial banks in Kenya. The specific objectives were: to establish the effect of system innovations on cost efficiency of commercial banks in Kenya; to analyze the effect of product innovations on cost efficiency of commercial banks in Kenya. The study was anchored in the Transaction Cost Theory and Innovation Diffusion Theory. The study targeted a census of all 39 commercial banks licensed by the Central Bank of Kenya and employed a descriptive research design with an explanatory approach. Secondary data were extracted from CBK reports and bank financial statements spanning 2020 to 2024, supplemented by primary data from structured questionnaires administered to 68 respondents (response rate: 87.18%). Inferential analysis utilized multiple linear regression models alongside Pearson’s product-moment correlation coefficients, while means and standard deviations supported descriptive evaluation. Correlation outcomes reflected moderate negative relationships with cost efficiency: system innovations displayed the strongest link (r = -0.470) and product innovations (r = - 0.312). The GLS regression findings showed that product innovations had a negative influence on cost efficiency (β = - 0.032, p = 0.003). In conclusion, adopting product and system innovations enhanced cost efficiency in commercial banks. Consequently, the study recommends that banks prioritize system innovations
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    Fundamentals that predict mutual fund performance: a case of fund managers in Kenya
    (2013-01-09) Gitagia, Francis K.; Jagongo, A. O.; Ndede, F.W.
    The mutual fund industry has developed rapidly over the past 20 years; this can be attributed to the various advantages associated with mutual fund as opposed to other investment vehicles. Survival of the fund is solely determined by its performance in the market; this is determined by growth of fund investments and amount of periodic returns to investors for growth and value funds respectively. Kenyan fund market is still at its nascent and of late it has not been performing as well as compared to other developed fund markets in the world. Despite this, little research has been carried out to determine the reasons for poor performance and especially in studying the fundamentals that determine the fund performance. The purpose of the research was to study the fundamentals that predict mutual fund performance in Kenya. The essentials studied in the research included; Investment styles, fund characteristics, behavioral patterns, managerial capabilities and managerial capabilities. The research findings will be of utmost importance to the fund managers, investors, government and also academic fraternity. The study involved all the registered fund managers in Kenya which according to REA stands at 16. The research design was descriptive and the researcher will employed census method of study where 2 questionnaires were issued to each registered fund manager; one to investment manager and the other to fund administrator. 27 questionnaires out of 32 questionnaires issued were duly completed and returned. The data collected was first subjected to descriptive statistics including frequencies, percentages, means and standard deviations. Inferential statistics was also used in the study; in this case, Pearson's moment correlation coefficient was used to determine the magnitude of relationship between variables. The research established a positive relationship between fund performance and investment style, fund characteristic, managerial capabilities and persistence of returns. There is negative relationship between fund performance and behavioral patterns. The research recommends that the various fund regulators comes up with the necessary policies and laws to regulate the industry and also training of fund managers and investors on the funds best practice to improve performance.
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    Internal Control System and Financial Efficiency of Deposit Taking Savings and Credit Co-Operatives in Busia County, Kenya
    (International Academic Journal of Economics and Finance (IAJEF), 2025-11) Minayo, Sharon; Gitagia, Francis K.
    Financial inefficiencies among deposittaking savings and credit co-operatives remain a pressing concern in Kenya, despite the sector’s notable contribution of around 10% to the country’s GDP through savings mobilization and credit facilitation to individuals and small businesses. In Busia County, many DT-SACCOs face persistent inefficiencies characterized by high operational costs and suboptimal resource allocation, even with the implementation of internal control systems. The overall goal of the research was to ascertain the effect of internal control systems on the financial efficiency of DT-SACCOs in Busia County. The specific objectives were to determine the effect of control environment and risk assessment on financial efficiency. Anchored on Agency Theory, Stakeholder Theory, Systems Theory, and the RBV, the research utilized a mixed methods research approach. The unit of analysis comprised all 8 DT-SACCOs in Busia County, whilst the unit of observation included finance/accounting, internal audit, and finance department staff. A census approach was applied to target the full population of 40 staff members. Secondary data were extracted from annual reports to assess operating costs and income, while primary data were obtained utilizing semistructured questionnaires. Quantitative data were analyzed utilizing SPSS version 28 through descriptive statistics Diagnostic tests including normality, multicollinearity, autocorrelation, heteroscedasticity, and linearity were conducted to validate the assumptions of regression analysis. Regression results revealed that control environment and risk assessment had a statistically significant and positive effect on the financial efficiency of DT-SACCOs in Busia County. Correlation results showed a positive association between the internal control variables and financial efficiency. These findings highlight the critical role of robust internal controls in improving the financial outcomes of SACCOs. The research concluded that when the control environment is strengthened and risk assessment mechanisms are improved, DT-SACCOs in the area are significantly more financially efficient. The research suggests that so as to be in compliance with evolving operational dynamics and regulatory requirements, DTSACCOs should regularly review and update their internal control policies and procedures. SACCOs must also have structured training programs to aid employee recognize, assess, and communicate risks