Browsing by Author "Makui, Risper Siroma"

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    Corporate Restructuring and Financial Performance of Commercial Banks in Kenya
    (Kenyatta University, 2024) Makui, Risper Siroma
    Financial performance is crucial in the realm of finance, and explaining why two organizations operating in the same environment perform differently remains a significant concern. The COVID-19 pandemic has posed a substantial challenge to firms, necessitating strategic responses to survive in the market. Consequently, corporate restructuring has become a common strategy among commercial banks in Kenya. Despite these efforts, banks reported a decline in financial performance in 2020. The objective of this research was to assess the effect of corporate restructuring on the financial performance of commercial banks in Kenya. The specific objectives were to: determine the effect of loan restructuring on financial performance, establish the effect of non-interest income restructuring on financial performance, determine the effect of financial technology restructuring on financial performance, and establish the moderating role of bank size on the relationship between corporate restructuring and financial performance of commercial banks. The study was grounded in four theories: Technology Acceptance Model, Financial Intermediation Theory, Agency Theory, and Profit Maximization Theory. A causal research design was adopted, targeting the 38 commercial banks operating in Kenya as of 31st December 2020. Secondary data was collected sing a data collection instrument and document review guide, sourced from the Central Bank of Kenya. The data covered a period of two years (January 2020 to December 2021) and was collected on a quarterly basis. Descriptive statistics and panel regression analysis were sed for data analysis, with diagnostic tests such as normality, multicollinearity, heteroscedasticity, autocorrelation, and Hausman specification tests conducted to ensure the validity of the regression analysis. The findings indicated that loan restructuring, non-interest income restructuring, and financial technology restructuring had a positive and statistically significant effect on the financial performance of commercial banks in Kenya. However, the study found that bank size does have a moderating effect on the relationship between corporate restructuring and the financial performance of commercial banks. The study concludes that corporate restructuring significantly impacts the financial performance of commercial banks in Kenya. It recommends that banking institutions enhance their se of technology, develop secure banking applications with robust security measures, and tilize technology to analyze personal information related to creditworthiness. Additionally, commercial banks should diversify their operations to improve financial performance.
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    Loan Restructuring and Financial Performance of Commercial Banks in Kenya
    (Journal of Accounting and Finance, 2024) Makui, Risper Siroma; Abdul, Farida; Musau, Salome
    The study sought to evaluate the influence of corporate restructuring on the performance of commercial banks in Kenya. The financial performance of Kenyan banking institutions has been improving over the last five years. However, there was a reported decline in profitability in 2020, dropping from 159.1 billion shillings to 112.1 billion shillings. The specific objectives were to determine the effects of loan restructuring, non-interest income restructuring, financial technology restructuring, and the moderating role of bank size in the relationship between corporate restructuring and financial performance. The study was based on four theories: the technology acceptance model, financial intermediation theory, agency theory, and profit maximization theory. It adopted a causal research design and included 40 commercial banks operating in Kenya as of December 31, 2020, as the population. Secondary data collected from the Central Bank of Kenya covered a two-year period from January 2020 to December 2021. The data analysis included the use of descriptive statistics and panel regression analysis. Diagnostic tests were also performed to confirm that the assumptions required for regression analysis were satisfied. The findings revealed that loan restructuring, non-interest income restructuring, and financial technology restructuring all had a positive and statistically significant impact on the financial performance of commercial banks in Kenya. However, bank size did not moderate the relationship between corporate restructuring and financial performance. In conclusion, corporate restructuring significantly influenced the financial performance of commercial banks in Kenya. Based on the findings, the study recommends that banking institutions should enhance their use of technology in banking services. Commercial banks can develop secure and tamper-proof banking applications with robust security measures. Additionally, they can leverage technology to assess customers' creditworthiness based on personal information. Finally, commercial banks should consider diversifying their operations to improve their overall performance.