Browsing by Author "Jagongo, Ambrose"

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    Financial Management Practices and Financial Performance of Commercial and Manufacturing State Corporations in Kenya
    (IPRJB, 2026-03-24) Njoroge, Peter; Jagongo, Ambrose
    Purpose: This independent study in finance attempts to investigate effect of Financial Management Practices on Financial Performance of Commercial and Manufacturing State Corporations in Kenya. Methodology: Researcher intends to adopt a positivist philosophy that demands researcher to be independent of the study. Explanatory non-experimental research design will be employed in the study. For the purposes of this study, a census of all Commercial and Manufacturing Corporations will be used in study. The study will use Secondary data from financial statements of Commercial and Manufacturing State Corporations for period 2020- 2025. Data will be obtained from office of auditor general and Kenya Parliament Library. Researcher proposes to use a panel multiple linear regression model in the analysis and Baron & Kenny (1986) methodology to test for mediation and moderation effects. Findings: The study anticipates that effective financial management practices will significantly enhance Financial performance with internal cashflows mediating this effect, particularly moderated by firm size in Commercial and Manufacturing State Corporations in Kenya. The study will determine whether the financial management practices significantly affect Financial Performance of Commercial and Manufacturing State Corporations In Kenya and give advise to Management and those charged with governance of these corporations on management practices of serious concerns for improvement. Findings will guide management to prioritize risk management practices, advising governance bodies on reforms to improve financial health and reduce bailout dependencies. Unique Contribution to Theory, Practice and Policy: Management of Commercial and Manufacturing State Corporations will be able to tell how financial management practices affect their financial performance. The study intends to ennriches literature by testing mediation and moderation in an African SOEs context, potentially refining Resource based Theory for resourceconstrained environments. The study informs turnaround strategies for Kenyan SOEs, such as optimizing capital structure to boost performance amid economic volatility. Finally, the study will provide evidence for policymakers (e.g., Treasury) to enforce better financial practices, supporting sustainable development goals.
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    Impact of Inflation on Stock Market Returns: An Evidence from Banking Stocks of Nairobi Securities Exchange, Kenya
    (AESS Publications, 2025-04) Mwiwa, Judith Kanini; Jagongo, Ambrose
    Inflation significantly influences economic stability and investor confidence, potentially impacting stock market returns. Understanding this relationship is crucial for investors and policymakers, particularly in emerging markets like Kenya, where economic fluctuations are common. This study aimed to investigate the complex interplay between various inflation types and stock market performance within the Kenyan banking sector. Specifically, the study sought to determine the effects of imported inflation, demand-pull, cost-push, and inflation targeting on the stock market returns of commercial banks listed on the Nairobi Securities Exchange (NSE) from 2017 to 2022. The research was guided by the Fisher Hypothesis, Inflation Illusion Hypothesis, Proxy Hypothesis, and Interest Rate Parity Theory. A descriptive study design was employed, utilizing a census survey to collect data from all 11 banking sector firms listed on the NSE. Secondary data on stock market returns were sourced from the NSE and CBK, while inflation data was obtained from the KNBS. Quarterly data over five years were analyzed using SPSS version 21. Findings revealed that hyper-inflation, imported, cost-push, and demand-pull inflations had significant positive effects on stock market returns, while inflation targeting had a moderating effect. The study concluded that demand-pull inflation could lead to higher corporate earnings, while cost-push inflation could increase interest rates as the CBK attempts to control inflation. Imported inflation raised costs for firms relying on imported inputs, reducing profitability. Hyperinflation led to rising stock prices as investors sought to protect their wealth. Successful inflation targeting by central banks resulted in lower interest rates, boosting stock returns. The study recommended that the CBK could use interest rate adjustments to control inflationary pressures. Companies listed on the NSE could implement cost-control measures to mitigate cost-push inflation, while the government could impose tariffs to limit imported inflation. Additionally, diversification was suggested as a strategy for managing hyperinflation's impact on stock returns. The CBK was advised to use monetary policy tools such as interest rates and reserve requirements to regulate inflation and enhance financial stability.