Objective: The paper sought to investigate the role of an effective audit committee in controlling earnings management practices. Design / Methodology: A panel data sourced from the audited financial reports of firms listed at the Kenyan Nairobi Securities Exchange for the periods between 2004 and 2017 were analyzed using a panel regression model. Findings: Audit committee effectiveness proved an important monitoring mechanism for earnings management. The independence, Meeting frequency, and financial expertise of the audit committee evidenced a negative and significant effect on earnings management. Practical Implications: Firms need to ensure that their audit committees operate effectively. This is achieved through enhancing their independence, ensuring optimal meeting frequency, and a higher number of members with financial expertise for fewer earnings management. Originality: The paper suggests the ways through which audit committee effectiveness can be enhanced to reduce earnings management amid rampant global financial scandals.

Purpose: Understanding the mediating role of the adoption of financial innovations on the relationship behavioral factors and utilization of formal financial services was the main aim of this research.   The behavioral factors examined were self-control, confidence and social proof. The study is premised on behavioral finance theories. Design/Methodology: The positivist approach and explanatory research designs were adopted to understand the relationships between the variables under investigation. A sample of 486 owners/managers of licensed micro-enterprises in Nairobi, Kenya were selected using stratified random sampling technique. Primary data was collected through a structured questionnaire. Hypotheses were tested using Hayes and Zhao approach for mediation analysis. Findings: The results showed that financial innovations mediated the relationship between each of the behavioral factors and financial inclusion, that is; self- control (β =.0941, ρ= .00), confidence; (β = .1019, ρ = .00) and social proof (β = .1036, ρ = .00).  Practical implications: The study has brought into fore the mediating role of financial innovations on the relationship between the three behavioral factors and financial inclusion. Thus, practitioners are encouraged give due attention to behavioral factors and financial innovations in policy formulation and programs geared towards optimal utilization of financial services.

Purpose: The purpose of this study was to examine the relationship between portfolio quality and financial sustainability of microfinance institutions in Kenya. Research Design, Data, and Methodology: The analysis was based on a panel dataset of 30 microfinance institutions for the period of 2010 to 2018. Data was obtained from the Microfinance information exchange (MIX) database, and it was analyzed through descriptive and inferential statistics with the aid of STATA. Based on the results of the Hausman test, the study adopted the fixed effect regression model to test the research hypothesis. Results: The study found that portfolio quality had a positive significant effect on financial sustainability of Microfinance institutions in Kenya (β= 0. 211; p-value < 0.05). For the control variables; firm age had a positive effect (β= 0.773; p-value <0.05), while firm size (β= -0. 749; p-value < 0.05) had a negative effect on financial sustainability. Conclusions: The study concluded that portfolio quality has an important influence on the financial sustainability of microfinance institution. The study recommends that managers of microfinance institutions should devise good collection policies to improve portfolio quality while lessening loan default rate. The portfolio quality may improve the overall profitability and enhance investor confidence in their strategic decision-making on refinancing.

Economic growth has remained an elusive issue in all economies in the world for a long period of time with empirical studies about factors determining economic growth giving mixed results in different countries. Common Market of Eastern and Southern Africa (COMESA) was founded to foster and promoting joint development in all fields of economic activity and the joint adoption of macro‐economic policies and programmes to raise the standard of living of its peoples among its members states. Among others, emphasis was put on mobilizing domestic financial resources, mobilizing international resources, and promoting international trade as the engine of economic growth. However, it is not clear if these policies are a panacea to economic growth issue in COMESA countries and economic growth in these countries has remained a challenging issue in all economies. This study analyzed determinants of economic growth such as investor protection, credit to private sector, foreign exchange rate, and corruption. The study concluded by expounding that an increase in credit to private sector spurs economic growth. This is because investors are willing to invest in more risky venture while encouraging safe borrowers to be more effective. A depreciation of the currency can make a countryʹs exports cheaper and imports more expensive. The financial sector, especially in the formal sectors of the economy, is critical in channeling savings into productive investment. The banking sector is widely regarded as an important economic conduit for financial intermediation. Credit to private sector increases a countryʹs productive capacity. The result of this research adds new knowledge by analyzing the determinants of economic growth among COMESA countries. Results enables macroeconomists, policy makers and central monetary authorities of all the nations to deeply understand the role of investor protection, credit to private sector, foreign exchange rate, and corruption to spur economic growth.

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