Firm Characteristics and Financial Performance of Pension Schemes in Kenya
| dc.contributor.author | Wandeto, Milka Ngina | |
| dc.date.accessioned | 2024-07-31T12:15:02Z | |
| dc.date.available | 2024-07-31T12:15:02Z | |
| dc.date.issued | 2024-06 | |
| dc.description | A Research Project Submitted to the School of Business Economics and Tourism in Partial Fulfilment of the Requirement for the Award of the Degree of Master of Business Administration (Finance) of Kenyatta University, June, 2024 | |
| dc.description.abstract | Pension schemes’ performances are very important to a country as they have a huge influence on the economy of any nation. Pension is an income replacement in old age for citizens under schemes without which retirees end up becoming a burden to a nation due to limited financial resources. Most countries in the 21st century are taking keen interest in the management and performance of pension schemes through proper legislation and regulations that support the sector. This research intended to determine how firm characteristics affect the financial performance of pension schemes in Kenya. Particularly, the research aimed to ascertain the effect age of contributor, density of contribution and firm size on the financial performance of pension schemes in Kenya. The research was founded anchored on agency theory, stakeholders’ theory, modern portfolio theory, life cycle consumption smoothing theory and resource dependency theory. The study population was 1077 pension schemes as per RBA database of 2021. From the study population of 1077, the researcher employed simple random sampling with a sample size of 88 obtained using the Fischer’s formula. The study was conducted using mixed research design. The study used quantitative secondary data from audited pension schemes' annual financial reports filed with RBA. The data was for a five-year (5) from 2017 to 2021. The study employed SPSS (SPSS v.20) to analyse the quantitative data through descriptive statistics, correlation analysis and multiple linear regression model. Research findings were presented in tables and figures. Hypotheses tests were performed at a significance level of 0.05. The study conducted three diagnostic tests including heteroscedasticity, normality and serial correlation test. The obtained data was regressed on the basis of direct effect. The regression results produced an R2 of 0.643 which implies that 64.3% of the changes in financial performance among pension schemes in Kenya can be explained by the selected firm characteristics. The research found that age of contributor is positive but insignificantly related to ROI financial performance of pension schemes in Kenya with a P-value of 0.677. Density of contribution and firm size were found to be positive and significantly related to financial performance of pension schemes in Kenya with a P-value of 0.000. The research concluded that density of contribution and firm size are critical for pension schemes’ financial performance. The research therefore recommends that policy makers in the pension scheme sector in Kenya should develop policies that enhance the output from various firm characteristics for better pension schemes’ financial performance. The research further suggests that policymaker develop strategies and policies at enhancing the density contribution from scheme members. | |
| dc.description.sponsorship | Kenyatta University | |
| dc.identifier.uri | https://ir-library.ku.ac.ke/handle/123456789/28527 | |
| dc.language.iso | en | |
| dc.publisher | Kenyatta University | |
| dc.title | Firm Characteristics and Financial Performance of Pension Schemes in Kenya | |
| dc.type | Thesis |