International Journal of Finance and Accounting 2022-11-18T08:39:16+03:00 Journal Admin Open Journal Systems <p>International Journal of Finance and Accounting (IJFA) is a peer reviewed journal published by IPRJB.IJAF emphasize on the interdependency of accounting and finance reflects the increasing complexity of corporate financial management in recent years and v verifies the importance of understanding accounting and finance from an international context. Being a high factor journal IJAF is published in both online and printed version.</p> <p><span id="internal-source-marker_0.04939836589619517"> </span></p> FINANCIAL RISK AND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS LISTED IN THE NAIROBI SECURITIES EXCHANGE IN KENYA 2022-10-11T15:22:21+03:00 Winnie Mwangi Joshua Ong’era Joshua Matanda <p><strong>Purpose:</strong> The objective was to determine the relationship between financial risk and financial performance of listed commercial banks in Kenya.</p> <p><strong>Methodology:</strong> Descriptive research design was adopted in the study. The target population of the study was formed by all the twelve listed commercial banks as at December 2021. Secondary data was utilized in the study. This secondary data was acquired from published financial statements of the listed commercial banks in Kenya for the period 2015 – 2020. &nbsp;Data obtained was analysed using descriptive and inferential statistics. Further, data analysis was conducted using STATA software. The results obtained were then summarized using tables and charts.</p> <p><strong>Findings:</strong> The study found that credit risk, liquidity risk, market risk and operational risk explain 31.42% of financial performance of the listed commercial banks. Credit risk has a positive significant effect on financial performance of the listed commercial banks, while market risk and operation risk have negative and significant effect on financial performance of the listed commercial banks. Liquidity risk was found have positive insignificant effect on financial performance of the listed commercial banks.</p> <p><strong>Unique contribution to Theory, Practice and Policy:</strong> The study recommends that the banks should increase their secured loans portfolio, manage the liabilities of the company and ensure sustainable growth of the company assets and finally, the listed commercial banks should manage their expenses to a level that is sustainable. The credit risk theory and liquidity preference theory may be used to anchor future studies in the listed commercial banks.</p> 2022-10-11T00:00:00+03:00 Copyright (c) 2022 International Journal of Finance and Accounting Relationship Between Public Debt And Financial Development In Kenya 2022-11-18T08:39:16+03:00 Samwel Kipyego Charity Njoka Joseph Muniu <p><strong>Purpose</strong>: This study sought to analyze the relationship between public debt and financial development in Kenya. The specific objectives were to examine the association between public domestic debt and financial development, to analyze the connexion between public external debt and Kenya's financial development. The study was underpinned on Financial Repression, Financial Liberalization, Lazy Bank Hypothesis, Demand following hypothesis, and the MacKinnon theoretical model.</p> <p><strong>Methodology</strong>: The study applied positivism philosophy and explanatory research design. The study used country data hence no need for sampling. Data was collected for 1964 to 2019 from Kenya's Central Bank. Descriptive and inferential statistics were used in the study. Diagnostic tests such as Multi-collinearity, Auto-correlation, Normality, and Unit root were performed.&nbsp; Specifically, the long-run and short-run relationships were analyzed using the Auto-Regressive Distributive lag (ARDL) bound test for cointegration. An error correction model was applied to examine the short-run association.</p> <p><strong>Finding</strong>: The test suggested the presence of a stable long-run relationship between financial development, public domestic debt, public external debt, and interest rate. The study finding indicates that public domestic debt has a statistically significant negative relationship with Kenya's financial development both in the long and short run. Also, public external debt has a statistically significant positive long and short-run association with financial development.</p> <p><strong>Unique Contribution to Theory, Practice and Policy:</strong> The affirms liberalization theory by Shaw and Mackinnon (1973), advocating for a reduction in direct government participation in the financial market credit restriction In addition the study's findings are consistent with the lazy bank hypothesis by Hauner (2009) In addition, the government must ensure appropriate market-determined interest rate must be applied in domestic public debt. Furthermore, the government should continue fostering financial liberalization policies that encourage public external debt has its impacts positively on financial development.</p> <p>&nbsp;</p> <p>&nbsp;</p> 2022-11-18T00:00:00+03:00 Copyright (c) 2022 International Journal of Finance and Accounting THE IMPACT OF COVID-19 ON INTERNALLY GENERATED REVENUE OF SOUTH-WEST NIGERIA 2022-10-13T11:05:49+03:00 Mercy Femi-Olagundoye Olufemi Olagundoye <p><strong>Purpose</strong>: the paper investigated the impact of COVID-19 on the Internally Generated Revenue (IGR) of southwest Nigeria comprising Ekiti state, Lagos state, Ogun state, Ondo State, and Osun state, Oyo state.</p> <p><strong>Methodology</strong>: the authors sourced data from secondary sources; the Internally Generated Revenue was obtained from the annual publication of the National Bureau of Statistics covering 2019 and 2020 and the COVID-19 confirmed cases were obtained from National Disease Control Centre.</p> <p><strong>Findings: </strong>The result showed that paired correlation of IGR 2019 and 2020 showed a strong positive correlation and the same was also true of COVID-19 cases and IGR 2020 (p = 0.001). The result of the t-test showed no significant difference (p &gt; 0.05) between IGR 2019 and IGR 2020 quarter on quarter.</p> <p><strong>Unique Contribution to Theory, Practice and Policy: </strong>The result supported two theories; The ‘Pecking Order Theory and Ability-To-Pay, Internally Generated Revenue focuses on funds derived within the state, just like internal financing to a firm. The internally generated revenue did not decline during the pandemic because taxes were paid since the majority were paid salaries during the pandemic and transactions were conducted online via platforms, more importantly, the Central Bank of Nigeria did not shut down so economic activities were not paralyzed but migrated to online. The study proved that in times of crisis, IGR may not be adversely affected if all the channels of generating income are available to taxpayers. This aids budget and planning during a crisis period, furthermore, the government will be able to plan and channel funds to areas of need accordingly. The result further supported the new model of working; people can work remotely and pay their taxes despite the lockdown.</p> 2022-10-13T00:00:00+03:00 Copyright (c) 2022 International Journal of Finance and Accounting Assessment of Internal Control Practices on Financial Performance of State Corporations in Kenya 2022-10-26T18:09:27+03:00 Robert Mrima Martin Ronald <p><strong>Purpose:</strong> The purpose of this study was to assess the influence of internal control practices on financial performance of state corporations in Kenya. State corporations have been identified as important drivers in accelerating national growth and2 development as well as2improving delivery of public services. However, their performance has over the years been a2matter of public2concern.</p> <p><strong>Methodology:</strong> The study used descriptive research design. A study population of 561 was collected2and a sample of 234 was selected for the study randomly using Yamane (1967) formula. It involved collection of primary data on segregation of duties, transactional authorization, independent checks, documentation and records. Secondary data was collected as well to assess the performance of the state corporations. Data was obtained randomly from the corporations and analyzed using descriptive statistics and regression analysis and the outcomes were shown through tables.</p> <p><strong>Findings:</strong> Upon analysis of data collected, findings showed that internal control practices significantly influenced the financial performance of state corporations in Kenya. The internal control practices had a significant influence on the financial performance of state corporations.</p> <p><strong>Unique Contributions to Theory, Practice and Policy:</strong> It was concluded that these internal control factors were critical and needed to be embraced so as excellent financial performance of state corporations can be realized. The study recommended that the management should continually assess the risk, monitor control implementation, and modify controls as needed in order to identify and establish effective controls.</p> 2022-10-26T00:00:00+03:00 Copyright (c) 2022 International Journal of Finance and Accounting