Moderating Effect Of Market Power On The Relationship Between Bank-Specific Characteristics And Profitability Of Commercial Banks In Kenya
| dc.contributor.author | Mwali, Nancy | |
| dc.contributor.author | Omagwa, Job | |
| dc.contributor.author | King’oo, Ruth Ndanu | |
| dc.date.accessioned | 2026-01-09T09:46:45Z | |
| dc.date.available | 2026-01-09T09:46:45Z | |
| dc.date.issued | 2025-09 | |
| dc.description | Research Article | |
| dc.description.abstract | Commercial banks are essential for the Kenyan economy since they make significant contributions to its growth and development. Empirical data from the Central Bank of Kenya shows that the commercial banking industry has experienced fluctuations in profitability for the period covering 2013 through 2023 despite the bank-specific factors being in line with regulatory expectations hence, the effect of such factors on bank-profitability remains an issue for further investigation. Accordingly, the purpose of the study was to determine the moderating effect of market power on the relationship between bank-specific characteristics and profitability of commercial banks in Kenya. The study was anchored on the Profit Maximization Theory. A Census Design was adopted, which involved 39 banks licensed and regulated by Central Bank of Kenya for the period covering 2013 through 2023. Given the outcome of panel regression analysis, the study established that the interaction between bank-specific characteristics (bank size, capital adequacy, liquidity, and asset quality) and market power was negative and statistically significant in prediction of profitability (β=-.026, p=.000). Accordingly, the study recommends that commercial banks should focus on customer service and innovative financial solutions that have the potential to promote organic growth as opposed to their overreliance on market size as the main driver of performance. | |
| dc.identifier.citation | Mwali, N., Omagwa, J., & King’oo, R. N. (2025). Moderating effect of market power on the relationship between bank-specific characteristics and profitability of commercial banks in Kenya. IOSR Journal of Business and Management (IOSR-JBM), 27(9 Ser. 6), 08–13. https://doi.org/10.9790/487X-2709060813 | |
| dc.identifier.issn | 2278-487X | |
| dc.identifier.uri | https://ir-library.ku.ac.ke/handle/123456789/32026 | |
| dc.language.iso | en | |
| dc.publisher | IOSR Journal of Business and Management (IOSR-JBM) | |
| dc.title | Moderating Effect Of Market Power On The Relationship Between Bank-Specific Characteristics And Profitability Of Commercial Banks In Kenya | |
| dc.type | Article |