When investors take part in any investment, the main objective is to increase their wealth. This is achieved when share prices increase. The performance of unit trusts in Kenya has however been poor compared to the counterparts in the rest of the world. The poor performance is a discouragement to individual and corporate investors in addition to affecting the realisation of financial stability according to the Kenya vision 2030. Empirical literature from developed and emerging markets posits that fund size explain the performance of unit trust funds. This study therefore investigated the effects of fund size on the performance of unit trust funds in Kenya. The study adopted an explanatory research design and positivism philosophy. The target population was 16 unit trust firms in Kenya as at the end of the year 2017. The study used a census approach. Secondary data was collected from the audited financial statement of respective unit trusts for the period 2005 to 2017 using a data collection schedule. The study established that fund size has significant positive effect on performance in all funds. The study concluded that increase in fund size increases performance. The study recommends that capital market authority should monitor performance of unit trusts constantly and in addition develop merger policies to encourage small unit trust to merge in order to take advantage of economies of scale.
The collective investment schemes in Kenya have witnessed increased volatility in their earnings, resulting in irregular growth in the industry. This necessitates the need to understand the factors contributing to poor financial returns from collective investment schemes. Hence this study sought to investigate the effect of equity investments and bond investments on Kenyan CIS’s performance. The specific objectives were: To assess the effect of equity investments, bond investments on financial performance of collective investment schemes in Kenya. The study was anchored on: modern portfolio theory and the efficient market hypothesis. The positivism philosophy was applied, with the firms adopting an explanatory research design. The target population was 17 Collective Investment Schemes registered by the Capital Markets Authority and were operational in the period 2010 to 2018. Secondary data was sought from the Capital Markets Authority Annual reports and from the respective websites of the CIS’. Data was analyzed using descriptive statistics, correlational analysis and panel regression analysis. Hypotheses were tested at a significance level of 0.05. Findings indicate that equity investment, bond investments have an insignificant effect on CIS’ return on assets. Further, equity investments had a positive and significant effect on liquidity whereas bond investments had an insignificant effect on liquidity. The study recommends that CISs actively revise their equity investments and bond investments to stimulate financial returns.
Well-functioning commercial banks contributes directly to the growth of any economy. However, despite the mitigating efforts by the central bank of Kenya, commercial banks have recorded a decline in financial performance as shown by reduction in return on assets over the period of study (2013- 2020), that is; 4.7% in 2013, 3.4% in 2014, 2.9% in 2015, 3.3% in 2016, 2.7% in 2017, 2.7% in 2018, 2.6% in 2019 and 1.7% in 2020. The study sought to establish the effect of supervisory review and market discipline on financial performance of commercial banks in Kenya. The target population comprised of forty-three commercial banks from which a sample of thirty-eight commercial banks was obtained using purposive sampling. Data analysis involved descriptive statistics and inferential analysis. The 5% significance level was used to test the research hypotheses. The panel regression findings showed that supervisory review had a positive significant effect on financial performance of commercial banks in Kenya. Market discipline had a positive and insignificant effect on financial performance of commercial banks in Kenya. Market share had a negative and insignificant moderating effect on the relationship between supervisory review, market discipline and financial performance of commercial banks in Kenya. The conclusion of the study was that supervisory review and market discipline positively affected financial performance of commercial banks in Kenya. The study thus, recommends that commercial banks in Kenya should adhere to the prudential guidelines on supervisory review so as to enhance financial performance in the long run.
Purpose: The main purpose of this study was to establish the effects of construction cost on the growth in supply of real estate housing in Kenya. Methodology: The study adopted a descriptive research design. The target population was 78 registered real estate companies in Kenya. The sample size was therefore 39 registered real estate companies in Kenya. Primary data was collected through the administration of the questionnairesResults: The study found that finance cost, cost of building materials, cost of land and tax cost have a statistical and negative influence on the growth of supply of real estate housing. The study also concludes that increase in growth of real estate market despite the high interest rate could owe to the price inelastic demand for housing owing to economic disparity in the country. While low income earners, who are majority, are pushed away to less glossy and crowded homes where survival supersedes luxury, the upper middle income purchase of housing units is on the upward spiral.Unique contribution to theory, practice and policy: The study recommended that the government should lower interest expenses so as to encourage the increase in supply of affordable real estate housing. The bank should also lower their interest rates so that the real estate firms can be able to increase the supply of housing. The study also recommends that investors should consider investing in the real estate market despite the erratic interest rates.
Purpose: The purpose of this study is to investigate the effects of CS on the cost of capital of organizationslisted at the NSE. Kenya.Methodology:The study adopted a descriptive research design. The target population for this study were the 41 listed companies on the NSE which were drawn from a list of 65 after applying various exclusion and inclusion criteria. A census of 41 firms was therefore used. Secondary Data for the year 2010 to 2014 was collected from the NSE handbook. Data collected was analysed using descriptive statistics which included means and standard deviations. Inferential statistics such as Pearson correlation and panelregression was also used.The results were presented in form of tables, figures, charts, graphs and trend lines.Results: Based on the findings, the study concluded that there was a significant and positive relationship between asset ratio, total equity to debt ratio, total long term debt to total asset ratio and total short term debt to total asset ratio and cost of capital of firms listed in the NSE. These findings imply that an increase in any of the ratios led to an increase in cost of capital.Policy recommendation:Based on the findings the study recommended that firms should pursue optimum capital structure mix, which will ensure minimum cost of capital. They can do this by focusing on those forms of capital that had lower impacts on cost of capital.
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