Effect of Budgetary Control on Financial Performance of Selected Commercial Banks in Kenya

Simple item page
dc.contributor.authorMbuthia, Veronicah Wanjugu
dc.contributor.authorOmagwa, Job
dc.date.accessioned2019-07-15T13:34:58Z
dc.date.available2019-07-15T13:34:58Z
dc.date.issued2019-07
dc.descriptionResearch Articleen_US
dc.description.abstractThe successful provision of basic banking products and services must not be devoid of an effective budget control system, if the organizational goals and objectives are to be achieved. A detailed review of past studies shows that they were carried out either on a different context or interrogated different conceptual issues. In addition, some of the past empirical studies focused on different research methodologies and adopted different data collection instruments. The purpose of this study was to establish the effect of budgetary control on financial performance of selected commercial banks in Kenya. The study specifically sought to establish the effect of budget planning, budget implementation, budget control and budget review on financial performance of selected commercial banks in Kenya. The study adopted a cross sectional descriptive design and the target population was the employees in credit, accounting/finance and operations departments in three selected commercial banks. Both secondary and primary data was used and analyzed using trend analysis, multiple regression analysis and descriptive analysis. The study results indicated that budgetary planning has a positive and significant effect on financial performance (P = 0.000). In addition, the study found that budget implementation was found to have positive and significant effect on financial performance (P= 0.000). Further, budget control had a positive and significant effect on financial performance (P = 0.021). Also, the study found that budget review was also found to have positive and significant effect on financial performance (P= 0.001). The study found that budget planning had the most significant effect on financial performance of selected commercial banks in Kenya followed by budget implementation, budget review and budget control. The study recommends that the managers of the banks should review their current performance yearly targets, work on threats and opportunities and analyses the success and failure of previous plans so as to improve on their budgetary planning. Further, the managers in commercial banks should establish more budgeting centers, employ more budget officers and provide budget manual in order to improve on their budgetary control. In addition, they should solicit feedback, review budget conference for accuracy and arrange for catering and other vendors so as to improve on the budget conference.en_US
dc.identifier.issn2321-5933
dc.identifier.issn2321-5925
dc.identifier.urihttp://ir-library.ku.ac.ke/handle/123456789/19564
dc.language.isoenen_US
dc.publisherInternational Organization Of Scientific Research (IOSRen_US
dc.subjectBudget Planningen_US
dc.subjectBudget Implementationen_US
dc.subjectBudget Controlen_US
dc.subjectBudget Reviewen_US
dc.subjectFinancial Performanceen_US
dc.titleEffect of Budgetary Control on Financial Performance of Selected Commercial Banks in Kenyaen_US
dc.typeArticleen_US
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
Effect of Budgetary Control and Financial Performance .....pdf
Size:
263.98 KB
Format:
Adobe Portable Document Format
Description:
Full Text Article
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed upon to submission
Description:
Download
Collections
RP-Accounting and Finance Department