International Journal of Finance and Accounting <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> en-US (Journal Admin) (Journal Support) Tue, 15 Mar 2022 09:57:07 +0300 OJS 60 EFFECT OF ELECTRONIC BANKING ON FINANCIAL INCLUSION AMONG COMMERCIAL BANKS IN SOMALIA <p><strong>Purpose: </strong>The purpose of the study was to investigate the effect of automated teller machines and mobile banking on financial inclusion among commercial banks in Somalia.</p> <p><strong>Methodology: </strong>A descriptive survey design was adopted targeting 6 commercial banks in Somalia that had successfully rolled out electronic banking while the respondents covered the Banks staff, like managers and officers from each institution respectively and census was used. Primary data was collected on automated teller machines, mobile banking and customer deposits with the aid of the questionnaire.&nbsp; The analysis was conducted through the Statistical Packages for Social Sciences version 24 utilizing descriptive statistics (means and standard deviations) and inferential statistics (correlation and regression analysis) and presented through tables.</p> <p><strong>Findings: </strong>The study found out that automated teller machines banking and mobile banking are significant predictors of financial inclusion among commercial banks in Somalia. Thus, electronic banking is a significant enabler of financial inclusion of commercial banks.</p> <p><strong>Unique contributions to theory, practice and Policy: </strong>The study contributes to the extension of the views of financial intermediation theory and the diffusion of innovation theory. The study implies that the adoption of electronic banking as influenced by the diffusion of innovation theory allow financial institutions to effectively realize their financial intermediation role in the economy. <strong>&nbsp;</strong>The senior management team of commercial banks in Somalia should allocate more resources towards financial innovation and enhancement of the existing electronic banking channels and infrastructures.&nbsp; The policy makers at the Central Bank of Somalia need to develop progressive regulations and rules that would promote the adoption of financial innovation while boosting financial inclusion</p> Abdikarin Ahmed Abdi, Fatima Mohamed Hussein, Dr. Hanita Binti Kadir Copyright (c) 2022 International Journal of Finance and Accounting Thu, 26 May 2022 00:00:00 +0300 ROLE OF INSURANCE IN AGRICULTURAL LENDING <p><strong>Purpose:</strong> This paper examines the role of insurance in providing loans for agricultural sector. There are many agricultural hazards that cannot be insured on a financially sound basis; nonetheless, there is room for enhanced insurance coverage of farm assets, of the life and health of individuals living in rural areas, and of certain specific dangers that affect crop and livestock production.</p> <p><strong>Methodology:</strong> A desktop literature review was used for this purpose. Relevant seminal references and journal articles for the study were identified using Google Scholar. The inclusion criteria entailed papers that were not over 5 years old.</p> <p><strong>Findings:</strong> The insurance framework in agricultural lending that has been presented calls for the participation of policymakers and implementers in addition to marketing channels and micro users. Agricultural insurance penetration based on the research of both the demand and supply side and it might be used as a tool for lowering the level of physical risk.</p> <p><strong>Unique Contribution to Theory, Policy and Practice:</strong> It is necessary to have experts, researchers, and extension agents step up their guidance and supervision efforts. Because it was difficult to discover a source of long-term funding or sponsorships, international and regional technical assistance, expertise, and financial support were urgently required.</p> Dr. Ben Kajwang PhD Copyright (c) 2022 International Journal of Finance and Accounting Wed, 03 Aug 2022 00:00:00 +0300 EFFECT OF CAPITAL STRUCTURE ON FINANCIAL PERFORMANCE OF SMALL TIERED DEPOSIT TAKING SAVINGS AND CREDIT COOPERATIVES SOCIETIES IN NAIROBI COUNTY <p><strong>Purpose:</strong> The study is focused to determine the effects of capital structure on financial performance of small tiered deposit taking savings and credit cooperatives societies (DTS) in Nairobi County.</p> <p><strong>Methodology used:</strong>&nbsp; systematic review research design. It involved the evaluation of relevant studies that address the dependent and independent variables using specific criteria.</p> <p><strong>Major findings and conclusions: </strong>The reviewed studies indicated that a conceptual framework gap exists. Empirical literature does not offer conclusive results on the nature of relationship between capital structure and financial performance. In addition, the studies were conducted for other prior periods and in other markets presenting a contextual gap.</p> <p><strong>Unique contribution to theory, practice and policy:</strong> The study used the pecking order theory to put forth the preference of external funds (debt) over internal funds (equity), in making capital structure decisions, in addition to the trade-off theory, which indicated to mutual exclusivity of debt and equity financing decisions. The study will be beneficial to deposit taking SACCOs in Kenya to adopt capital structure strategies to sustain consistent superior financial performance. The models developed from this study will aid the regulatory institutions that regulate DTS in Kenya to develop policies on Capital structure. The study will add new knowledge on capital structure and financial performance of DTS</p> John Maina, Dr. Ambrose Jagongo Copyright (c) 2022 International Journal of Finance and Accounting Tue, 15 Mar 2022 00:00:00 +0300 THE IMPACT OF MICRO FINANCING ON WOMEN: A BRIEF REVIEW OF THE LITERATURE <p><strong><em>Purpose</em></strong><em>:</em> To assess how women entrepreneurs have been impacted by microfinance.</p> <p><strong><em>Methodology</em></strong><em>:</em> Brief review of the literature.</p> <p><strong><em>Findings:</em></strong> Microfinance has been one of the development tools used to empower disadvantaged women entrepreneurs.&nbsp; The microfinance sector is increasingly being seen to be lucrative and the recent profit focus by new players in this sector and the effects of the COVID 19 pandemic are likely to reduce the social performance gains.&nbsp;</p> <p><strong><em>Unique contribution to theory, practice and policy:</em></strong> &nbsp;There is theory that access to microfinance by women leads to women empowerment, improved livelihoods and decision making. The literature review supports the theory but also highlights that microfinance on its own cannot succeed without addressing other socio economic challenges such as gender violence. Future studies needs to take an in-depth view of the socio economic challenges and how they can be mitigated once women are empowered.</p> Chintu Glenda Mwando Mazakaza , Dr. Collins Otieno Odoyo Copyright (c) 2022 International Journal of Finance and Accounting Thu, 23 Jun 2022 00:00:00 +0300 THE MODERATING ROLE OF FINANANCIAL INNOVATIONS ON THE RELATIONSHIP BETWEEN INTEREST RATE CAP AND ACCESS TO CREDIT BY MICRO, SMALL AND MEDIUM ENTERPRISES IN KISUMU COUNTY <p><strong>Purpose:</strong> The purpose of this study was to investigate the moderating role of financial innovations on the effect of monetary interventions on access to credit by micro, small and medium enterprises in Kisumu County, Kenya. The specific objectives were to assess the effect of interest rate cap on access to credit by MSMEs and to investigate the moderating role of financial innovations on the effect of interest rate cap on access to credit by MSMEs in Kisumu. This study was guided by the Keynesian Liquidity Preference Theory.</p> <p><strong>Methodology:</strong> The study adopted a descriptive research design with a target population of the 1,472 micro, small and medium enterprises registered at the Department of Social Services in Kisumu County, Kenya. At a confidence level of 95%, a representative sample of 420 MSMEs was obtained based on Yamane Taro’s formula. A closed ended questionnaire was administered to a stratified sample of the finance managers of the micro, small and medium enterprises. A Cronbach’s alpha of 0.801 confirmed the reliability of the instrument while its validity was assessed by expert opinion of finance professionals. Data was analyzed using regression analysis.</p> <p><strong>Results:</strong> Results showed that interest rate cap had a statistically significant effect on access to credit by micro, small and medium enterprises. Further, financial innovations moderated the relationship between interest rate cap and access to credit. &nbsp;The study concluded that MSMEs’ access to credit depended on the direct and the hierarchical effects of interest rate cap and also that financial innovations moderated these effects.</p> <p><strong>Unique contribution to theory, practice and policy</strong><strong>: </strong>The study recommends that the MSMEs could save with commercial banks to enable them access credit made available through lower interest rates unlike those charged by MFIs. Also, they should take advantage of financial innovations at their disposal to enable them access credit cheaply and fast. The policy makers ought to aim at enhancing access to credit by employing sector specific interventions as opposed to blanket interventions like cushioning MSMEs from high interest rates by providing such funds as funds for inclusion of the informal sector (FIIS) and should also derive policies targeting on improving the process and role of financial innovations in the relationship between interest rate cap and access to credit by MSMEs in Kenya. The study supported the Keynesian liquidity preference theory by positing that interest rates are controlled by the rise and fall of supply and demand for money and should be allowed to adjust freely. This theory could therefore be applied to similar studies. &nbsp;</p> Osir Rosalyne Adhiambo Copyright (c) 2022 International Journal of Finance and Accounting Tue, 29 Mar 2022 00:00:00 +0300 LIQUIDITY RISK AND ORGANIZATIONAL PERFORMANCE IN MALAYSIA SMALL AND MEDIUM ENTERPRISES <p><strong>Purpose: </strong>The propose of this study is to investigate the Liquidity Risk and Organizational Performance in Malaysia Small and Medium Enterprises</p> <p><strong>Methodology:</strong> Total of 311 questionnaire were distributed in order to test the relationship between the independent and dependent variables. Questionnaire were distributed and collected with self-report and with google forms. This study also used Statistical Packages for the Social Science (SPSS) to test the hypothesis of this study. A total of six hypotheses were distributed in this study.</p> <p><strong>Findings:</strong> As a result, out of six hypothesis, three hypothesis were tested as positive and three hypothesis tested as negative.</p> <p><strong>Unique Contribution to Theory, Practice and Policy:</strong> It also suggests that firms need to consider liquidity risk as a strategic step that needs to be taken into account. The first implication of the theory is that this study has contributed resourced-based theory.</p> Gulkiz Kurban, Hussen Bin Nasir Copyright (c) 2022 International Journal of Finance and Accounting Thu, 14 Jul 2022 00:00:00 +0300