Short-Term Financing Decisions and Financial Performance of Commercial Banks in Kenya
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Date
2020
Authors
Anachoni, David Chiboole
Jagongo, Ambrose
Journal Title
Journal ISSN
Volume Title
Publisher
International Academic Journals
Abstract
Management of short-term financing is integral to corporate manager’s daily decisions. Proper balance between long term and short term financing is critical to a business financial prosperity. The study seeks to examine the effect of short-term financing on the financial performance of commercial banks in Kenya. To achieve the objective panel data from (2012-2018) was extracted from financial statements of commercial banks in Kenya. The proxies for short-term financing were customer deposits, liquidity ratio and Leverage while financial performance was measured through Return on asset (ROA). Multiple regression analysis were used to determine how short-term financing affects financial performance. The findings of the study indicate that customer deposits and liquidity have a significant effect on profitability while leverage has an insignificant effect on profitability of commercial banks in Kenya.
Description
An Article Published International Academic Journal of Economics and Finance
Keywords
Financial Performance, Short-term financing, Return on assets
Citation
Anachoni, D. C. & Jagongo, A. (2020). Short-term financing decisions and financial performance of commercial banks in Kenya. International Academic Journal of Economics and Finance, 3(5), 62-74