Browsing by Author "Gitau, Gathukia Reuben"

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    Sustainability Reporting and Financial Performance for Listed Commercial Banks at the Nairobi Securities Exchange – Kenya
    (IJARKE, 2024-07) Gitau, Gathukia Reuben; Waweru, Fredrick
    Sustainability reports have become important tools in recent years for companies to measure their environmental performance and achieve sustainable development. Still, the influence of sustainability reporting on a company's financial returns varies, with certain companies experiencing progress while others observe no discernible effect. Despite the importance of sustainability reporting, there are few studies on the impact of sustainability reporting on corporate financial performance of banks listed on the NSE. Given this, the purpose of this study was to ascertain how sustainability reporting affected the financial results of commercial banks that were listed on the Nairobi Securities Exchange. This research used agency theory, stakeholder theory, and signaling theory to guide its research. A descriptive exploratory design was employed in this study, focusing on the 11 NSE-listed banks that collectively employ 23,534 individuals. The population was divided into secretarial, clerical, supervisory, and management strata using stratified random sampling. Data was collected through questionnaires (primary method) and through data collection instruments (secondary method). The data was later coded, entered, cleaned, and analyzed using SPSS version 28. Descriptive statistical measures, including means, percentages, and frequencies were employed to summarize and characterize the sample data. Inferential statistical techniques such as correlation and regression were also applied to derive conclusions and make inferences beyond the observed sample results. The results of this study show a clear connection between the disclosure of environmental information and the financial performance of banking institutions. The banks placed emphasis on environmental sustainability through various initiatives such as clean energy and waste management. However, the study also found that a comprehensive shift toward environmentally friendly practices has yet to occur. This study adds value to the current scholarly discourse by improving our understanding of the connection between sustainability reporting and financial performance.
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    Sustainability Reporting and Financial Performance for Listed Commercial Banks on Nairobi Securities Exchange, Kenya
    (Kenyatta University, 2024-06) Gitau, Gathukia Reuben
    The growing demand for transparency in environmental, social, and economic aspects has led global businesses to adopt sustainability reporting as a vital tool for measuring and improving their performance towards sustainable development. However, the impact of sustainability reporting on financial returns varies significantly among companies, with some experiencing positive outcomes while others show no discernible effect. Despite its importance, there is a noticeable gap in research specifically examining how sustainability reporting influences the financial performance of banks listed on the Nairobi Securities Exchange (NSE). This study aimed to investigate the influence of sustainability reporting on the financial performance of 11 commercial banks listed on the NSE as of December 2022. The specific objectives included assessing the impact of sustainability reporting on the environmental, social, and economic dimensions of financial performance, guided by the theoretical frameworks of agency theory, stakeholder theory, positive accounting theory and signalling theory. A descriptive exploratory research design was employed, focusing on the 11 NSE-listed banks with a total of 23,534 employees. The population was categorized into secretarial, clerical, supervisory, and management strata using stratified random sampling. Primary data was collected through structured questionnaires, complemented by secondary data gathered through data collection instruments. The collected data underwent rigorous coding, entry, cleaning, and analysis using SPSS version 28. Descriptive statistics, such as mean, percentages, and frequencies, provided a summary of the sample data, while inferential techniques like correlation and regression were used for deeper analysis beyond the sample. To ensure construct validity, the questionnaire was evaluated against the study's conceptual framework, including factor analysis. Reliability was assessed using Cronbach's alpha, given the interval scale of most questionnaire items. Ethical considerations were prioritized throughout the study, with measures taken to protect the confidentiality and integrity of collected data from unauthorized access and misuse. The findings revealed that sustainability reporting has a significant influence on the financial performance of NSE-listed banks, with environmental responsibility emerging as the most influential factor, followed by social and economic responsibilities. Banks that prioritize sustainable practices are well-positioned to achieve improved financial outcomes. These results provide valuable insights for policymakers, bank executives, and investors, highlighting the importance of integrating comprehensive sustainability strategies to enhance economic performance. This study contributes to academic discourse by advancing our understanding of the relationship between sustainability reporting and financial performance in the banking sector. It highlights the critical role of sustainable practices and recommends future research to expand this understanding across diverse banks and economic sectors, thereby fostering comprehensive insights into sustainable development efforts.