Firm Characteristics and Financial Performance of Commercial Banks Listed On the Nairobi Securities Exchange

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dc.contributor.authorMuema, Festus Mutinda
dc.contributor.authorAbdul, Farida
dc.date.accessioned2024-06-24T07:02:25Z
dc.date.available2024-06-24T07:02:25Z
dc.date.issued2021
dc.descriptionArticleen_US
dc.description.abstractCommercial banks be key financial service providers and based on which firm characteristics the management of each bank adopts, their financial performance has been observed to vary. The current research paper sought to interrogate the influence firm characteristics had on Nairobi Securities Exchange listed commercial banks' in Kenya financial performance. This study’s main intent was to examine how firm characteristics influenced NSE listed commercial banks' financial performance. This research’s specific intents was: to examine what effect the five selected firm characteristics have on Kenyan commercial banks performance, which include liquidity, leverage, solvency, asset structure, and the moderating effect of interest rate. This study was anchored on the pecking order, trade-off, and liquidity preference theories. The study adopted a causal research design that identifies the range as well as the description of the effect and cause of a correlation as well as the patterns of relationships between study variables. All the NSE-listed Kenyan commercial banks were the target populace. Statistical data of the financial statements were obtained from NSE and the CBK website. The study adopted a time scope of 7 years ranging from 2014 to 2020. Various diagnostic tests such as bivariate correlation analysis, normality test, Hausman specification test, multicollinearity test, and heteroscedasticity were carried out for the determination of the data reliability and validity. The descriptive statistical analysis acted as the tool for data analysis with the help of regression models. Results from the statistical analysis indicated a statistically significant correlation between liquidity, solvency, and asset structure, with the financial performance of Kenyan NSE listed commercial banks. Leverage on the other hand was observed to have an insignificant influence on performance. The rate of interest is also observed to have a significant influence on the correlation betwixt firm attributes and financial performance. This research suggests that central bank as a regulator of the commercial banks in Kenya to make use the results from the study to come up with regulations that are not too unfair to the banking institutions and that are based on the current business climate in the country. The Government can also use results from this study to set up stipulations that can help improve the operations of the banking sector to address the financial performance indifferences being experienced within the banking industry.en_US
dc.identifier.citationFestus Mutinda Muema, et. al. “Firm Characteristics and Financial Performance of Commercial Banks Listed On the Nairobi Securities Exchange.” IOSR Journal of Economics and Finance (IOSR-JEF), 12(3), 2021, pp. 01-13.en_US
dc.identifier.otherDOI: 10.9790/5933-1203060113
dc.identifier.urihttps://ir-library.ku.ac.ke/handle/123456789/28371
dc.language.isoenen_US
dc.publisherIOSR-JEFen_US
dc.subjectFirm Characteristicsen_US
dc.subjectFinancial Performanceen_US
dc.subjectCommercial Banksen_US
dc.subjectNairobi Securities Exchangeen_US
dc.titleFirm Characteristics and Financial Performance of Commercial Banks Listed On the Nairobi Securities Exchangeen_US
dc.typeArticleen_US
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