International Journal of Finance and Accounting https://www.iprjb.org/journals/index.php/IJFA <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 journals@iprjb.org (Journal Admin) support@iprjb.org (Journal Support) Fri, 12 Mar 2021 13:31:37 +0300 OJS 3.2.1.4 http://blogs.law.harvard.edu/tech/rss 60 EFFECTS OF BLOCKCHAIN TECHNOLOGY ON PERFORMANCE OF FINANCIAL MARKETS IN KENYA https://www.iprjb.org/journals/index.php/IJFA/article/view/1237 <p><strong>Purpose</strong>: The study sought to establish the effects of blockchain technology on the performance of financial markets in Kenya.</p> <p><strong>Methodology</strong>: The study adopted an explanatory research design. The study target population was drawn from the commercial banks located in Nairobi County, Kenya. The study targeted 84 bank managers in the IT and finance department of the 42 commercial banks in Kenya. Thus the target population of the study was 84 financial market managers selected. The study population was grouped into simple identifiable group called strata and adopted a stratified simple random sampling technique with inclusion of commercial banks. A sample size of a sample size of 50 respondents was arrived at. Data was collected using a structured questionnaire. The data collected was cleaned and coded, quantified and analyzed quantitatively. Quantitative data were analyzed using SPSS 24 where descriptive and inferential statistics were used to capture the data in order to understand the pattern and nature of relationships. Results were presented using tables.</p> <p><strong>Findings</strong>: The study findings showed that the correlation analysis showed that the adoption of blockchain technology had a positive and significant correlation to government policy R = 0.240. Adoption of blockchain technology had a positive and significant correlation to internet infrastructure by R = 0.293. Adoption of blockchain technology had a positive and significant correlation to transaction cost at R = 0.583. Lastly, adoption of blockchain technology had a positive and significant correlation to risk analysis at R = 0.507.</p> <p><strong>Unique contribution to theory, practice and policy:</strong> The study recommended that there should be policy review on issues relating to risk analysis so as to curb illegal money transfers and enhance performance of financial markets in Kenya. The study recommends for a thorough scrutiny by the government and ensures such issues are keenly analyzed to help bring peace and stability in the world. The aspect of having good internet connectivity is beneficial to the nation in that access to proper information will be available and it enables many users to have wide access to services as well as creation of employment. There is need to conduct a study on stability of blockchain technologies use and their impact to the economic growth. The study incorporated Technology Acceptance Model and Innovation Diffusion Theory to link the study topic to the concepts</p> Sarah Aketch, Prof. Felix Mwambia, Dr. Bernard Baimwera Copyright (c) 2021 International Journal of Finance and Accounting https://www.iprjb.org/journals/index.php/IJFA/article/view/1237 Fri, 12 Mar 2021 00:00:00 +0300 EVALUATION OF COST-BENEFITS OF OYSTER MUSHROOM PRODUCTION USING INNOVATIVE WATER HYACINTH SUBSTRATE FOR SUSTAINABLE DEVELOPMENT OF SME, KENYA https://www.iprjb.org/journals/index.php/IJFA/article/view/1310 <p><strong><em>Purpose: </em></strong>The study did an evaluation of cost-benefits of oyster mushroom production using innovative water hyacinth substrate for sustainable development of Sme, Kenya.</p> <p><strong><em>Methodology:</em></strong> The study employed the Benefit-Cost Analysis (BCA) technique for the evaluation</p> <p><strong><em>Findings</em></strong>: Oyster mushroom is edible and belongs to fungi Kingdom and can play a key role in economic development of a country. It can also contribute immensely to human wellness through enhancement of body immune system when consumed regularly.</p> <p><strong><em>Unique contribution to theory, practice and policy</em></strong> There is need to evaluate the Cost-Benefits of Oyster Mushroom Production Using Innovative Water Hyacinth Substrate for Sustainable Development of SMEs in Kenya. Objectives include determination of economic Net present Value (ENPV) and determination of Economic Benefit-Cost Ratio (EBCR). The significance of this study include control of Corona Virus (COVID-19) pandemic disease, poverty reduction, reduction of unemployment crisis and enhancement of sustainable business opportunity for SME.</p> Dr. M Nelima, Dr.A Nyakundi, Prof. J Achoka Copyright (c) 2021 International Journal of Finance and Accounting https://www.iprjb.org/journals/index.php/IJFA/article/view/1310 Wed, 07 Jul 2021 00:00:00 +0300 EFFECT OF MACROECONOMIC FACTORS ON TRADING VOLUMES OF MANUFACTURING AND ALLIED COMPANIES LISTED IN NAIROBI SECURITIES EXCHANGE https://www.iprjb.org/journals/index.php/IJFA/article/view/1337 <p><strong>Purpose: </strong>The purpose of the study was to establish the effect of macroeconomic factors on stocks trading volumes of manufacturing and allied companies listed in Nairobi Securities Exchange.&nbsp; &nbsp;</p> <p><strong>Materials and</strong> <strong>Methods: </strong>The research adopted a quantitative descriptive design that focuses on nine manufacturing and allied companies listed in NSE and make up in the list of 25-share index companies. The nine manufacturing and allied companies were selected through purposive sampling techniques, where samples were selected based specific factors. The data used in the research was collected from Central Bank of Kenya, Nairobi Security Exchange and Kenya Bureau of Statistics. This research employed a panel data analysis using STATA software. Treasury bill rate was dropped from the model due to multicollinearity.</p> <p><strong>Results: </strong>The analysis found that there was a negative relationship between inflation on trading volume, exchange rate had a negative correlation with stock trading, lending rate had a negative correlation with stock trading volume of manufacturing and allied companies listed in the Nairobi Stock Exchange.&nbsp;</p> <p><strong>Unique contribution to theory, practice and policy</strong><strong>: </strong>The study recommends the government should initiate policies that will lower the lending rate in Kenya as lower lending rate may translate to higher stock trading volumes. Further studies should research on other factors affecting stock trade volume which may include the value of the stocks and the information size in the market.</p> Gabriel Njogu Chege, Dr. Stanley Kirika, Ph.D. Copyright (c) 2021 International Journal of Finance and Accounting https://www.iprjb.org/journals/index.php/IJFA/article/view/1337 Wed, 11 Aug 2021 00:00:00 +0300 WAGE BILL AND FINANCIAL PERFORMANCE OF LEVEL 5 FAITH BASED HOSPITALS IN NAIROBI METROPOLITAN, KENYA https://www.iprjb.org/journals/index.php/IJFA/article/view/1375 <p><strong>Purpose: </strong>The main objective of this study was to examine the effect of wage bills on financial performance of Level 5 faith based hospitals in Nairobi Metropolitan, Kenya.</p> <p><strong>Materials and</strong> <strong>Methods: </strong>A descriptive survey was used in this study. The target population comprised of 6 Level 5 faith based hospitals, 30 staff members in Finance departments and 6 HR Managers. In total, the target population was 36. Census technique was used to select all the 36 respondents to participate in the study. Questionnaires were used to collect the data from the respondents whereas the financial statements were also obtained from the hospitals. Cross sectional technique was used to obtain data from the financial statements of the 6 Level 5 Faith Based Hospitals. Quantitative approach of analysis was used in the study whereby descriptive and inferential statistics were involved. The data was analyzed with the use of SPSS and summarized in frequencies and percentages. The summarized data was presented using figures and tables.</p> <p><strong>Results: </strong>The findings showed that salaries affected the financial performance of the faith based hospitals to some extent. Provision of performance related incentives and allowances affect the financial performance of the faith based hospitals to a greater extent. Majority of the respondents were positive that wage policy has an effect on the financial performance of faith based hospitals. Basic salary (Beta=.298) and wage policy (Beta=.364) were found to be positively related to the financial performance of faith based hospitals. On the other hand, performance related incentives and allowances had a negative inverse association. It was also found that majority of the hospitals are providing a wage bill between 36-40%. This is fairly good because it is close to the internationally accepted wage bill percentage standard of 35%.</p> <p><strong>Unique contribution to theory, practice and policy</strong><strong>: </strong>The study recommended that the faith based Hospitals should work towards improving the quality of services offered in their Hospitals so as to help raise more revenue that can support the operations of the Hospital. It is also recommended that the Hospital should avoid giving unnecessary incentives to the employees. Instead, it should work towards coming up with a structure in which incentives are provided based on employees performance and their input to the organization. The Hospitals should also conduct wage surveys and benchmarking activities with other related organizations. Through these surveys and activities the Hospitals will be able to monitor the average wage increase in other Hospitals and Juridictions. The study finally recommends Hospital wage bills should not exceed 40% of the total Revenue because it may lead to delayed payment of salaries or compromising some expenditures due to financial pressure. </p> Benedict Kisio (Br), Dr. Thomas Githui, Mr. John Omurwa Copyright (c) 2021 International Journal of Finance and Accounting https://www.iprjb.org/journals/index.php/IJFA/article/view/1375 Thu, 16 Sep 2021 00:00:00 +0300 EFFECT OF MACRO-ECONOMIC FACTORS ON FINANCIAL PERFORMANCE IN KENYA OF REGISTERED REAL ESTATE INVESTMENTS TRUSTS https://www.iprjb.org/journals/index.php/IJFA/article/view/1381 <p><strong>Purpose: </strong>The purpose of the study was to determine the macroeconomic effect on Registered Real Estate Investments Trusts (REITs) financial performance in Kenya.</p> <p><strong>Materials and</strong> <strong>Methods: </strong>Causal research design was used to describe the REITs financial performance. This study used the population comprising of thirteen REITs firms in Kenya. The entire population (census) was used for the study. This study utilized secondary sources of data to get the information required to satisfy the research objectives. Time series data on REITs financial performance was computed for a four-year period as at 1st January 2016 to 31stDecember 2019, thus making use of 4 data points. The process of data analysis entailed preparation of the collected data through cleaning, editing and coding so that statistics could be keyed in the SPSS (statistical package for social sciences) package. The data was presented through tables and figures</p> <p><strong>Results: </strong>&nbsp;The regression model results without the moderating variable showed that R = 0.792, R² = 0.627 indicating that 62.7% of the variance in the REITs financial performance can be accounted for by the independent variables (macroeconomic variables). On the other hand, the regression model results with the moderating variable showed that R = 0.838, R² = 0.703 indicating that 70.3% of the variance in the REITs financial performance can be accounted for by the independent variables (macroeconomic variables) and the moderating variable considered in this study.&nbsp;</p> <p><strong>Unique contribution to theory, practice and policy</strong><strong>: </strong>The study recommended that the government and REITs stakeholders should focus on policies and strategies that encourage favorable balance of payment in Kenya. REITs develop and design their products to suit consumers tastes and preferences to ensure their increased as consumption increases. Lastly, the government should expand the money supply to lower the inflation rates through tight fiscal and economic policies.</p> Sophia Jane Wanjiku, Dr. Joshua Ong’era Bosire, Dr. Joshua Matanda Copyright (c) 2021 International Journal of Finance and Accounting https://www.iprjb.org/journals/index.php/IJFA/article/view/1381 Mon, 27 Sep 2021 00:00:00 +0300