IDEAS home Printed from https://ideas.repec.org/a/apb/jabsss/2017p292-304.html
   My bibliography  Save this article

Financial regulation as moderating, influence of corporate governance, institutional quality, human capital and firm size on financial institutions performance in Kenya

Author

Listed:
  • Charles Ndalu Wasike

    (School of Business, Jomo Kenyatta University of Agriculture and Technology and College of Insurance, Juja, Kenya)

Abstract

This paper sheds light on the influence of corporate governance, institutional quality, human capital and firm size on financial institutions performance in Kenya using sampled data from 236 financial institutions during 2010-2015. Further, this research finds out whether the financial regulations could moderate the influence of corporate governance, institutional quality, human capital and firm size on financial institutions performance in Kenya. Stratified sampling was adopted to obtain samples from the heterogeneous financial services sector. Performance indicators used were Return on Investment (ROI) and Return on Equity (ROE) with predictors being human capital, institutional framework, firm size and corporate governance the relationship being moderated by financial regulations. The study established that the four predictors influenced financial institutions performance most of them being statistically significant except firm size. The financial regulation moderation effect was established to be significant in affecting the relationship between financial institutions performance and the predictors.

Suggested Citation

  • Charles Ndalu Wasike, 2017. "Financial regulation as moderating, influence of corporate governance, institutional quality, human capital and firm size on financial institutions performance in Kenya," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 3(6), pages 292-304.
    • Handle: RePEc:apb:jabsss:2017:p:292-304
    DOI: 10.20474/jabs-3.6.4
    as

    Download full text from publisher

    File URL: https://tafpublications.com/platform/Articles/full-jabs3.6.4.php
    Download Restriction: no
    File URL: https://tafpublications.com/gip_content/paper/Jabs-3.6.4.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.20474/jabs-3.6.4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Pandey I M, 1988. "Financial Management Research in India," IIMA Working Papers WP1988-02-01_00807, Indian Institute of Management Ahmedabad, Research and Publication Department.
    2. Dulacha Barako & Alistair Brown, 2008. "Corporate social reporting and board representation: evidence from the Kenyan banking sector," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 12(4), pages 309-324, November.
    3. Mirna Dianita, 2015. "Role of the Internal Auditor Influence and Good Corporate Governance in Banking Financial Performance Against State Owned Corporation," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 1(4), pages 176-179.
    4. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1998. "Law and Finance," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1113-1155, December.
    5. Mircea Epure & Esteban Lafuente, 2015. "Monitoring bank performance in the presence of risk," Journal of Productivity Analysis, Springer, vol. 44(3), pages 265-281, December.
    6. Yin, Ling-xiao & Qi, Yan-bin, 2010. "Institutional Factors Affecting the Economic Performance of Peasant Special Cooperative Organization- A Case of Cuiping District, Yibin City, China," Asian Agricultural Research, USA-China Science and Culture Media Corporation, vol. 2(02), pages 1-5, February.
    7. Stijn Claessens, 2006. "Corporate Governance and Development," The World Bank Research Observer, World Bank, vol. 21(1), pages 91-122.
    8. Georgios E. Chortareas & Jesus G. Garza‐Garcia & Claudia Girardone, 2011. "Banking Sector Performance in Latin America: Market Power versus Efficiency," Review of Development Economics, Wiley Blackwell, vol. 15(2), pages 307-325, May.
    9. Jae-woongYoo & Min-Kyu Lee & Wan Soo Lee, 2016. "Asymmetrical corporate responses to economic information: Applying the firm size effect," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 2(1), pages 25-37.
    10. Sarah Sanya & Matthew Gaertner, 2012. "Assessing Bank Competition within the East African Community," IMF Working Papers 2012/032, International Monetary Fund.
    11. Frank, Murray Z. & Goyal, Vidhan K., 2004. "The effect of market conditions on capital structure adjustment," Finance Research Letters, Elsevier, vol. 1(1), pages 47-55, March.
    12. Samad, Abdus, 2008. "Market structure, conduct and performance: Evidence from the Bangladesh banking industry," Journal of Asian Economics, Elsevier, vol. 19(2), pages 181-193, April.
    13. Chinmoy Ghosh & Raja Nag & C. F. Sirmans, 2000. "The Pricing of Seasoned Equity Offerings: Evidence from REITs," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 28(3), pages 363-384.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Noor Un Nisa Shahani & Muhammad Nawaz & Rubab Tahir, 2020. "A Study of Work-Life Balance for the Working Women in the United Arab Emirates and its Impact on their Job Satisfaction and Employee Retention: A Review Study," International Journal of Business and Economic Affairs (IJBEA), Sana N. Maswadeh, vol. 5(2), pages 85-90.
    2. Michael Kozak, 2018. "Conceptualizing Employer Branding: Is the Whole More than the Sum of Its Parts? Case Study-Based Evidence from Thailand," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 4(5), pages 197-207.
    3. Hock Thye Chan, 2018. "What is the Problem Represented to Be: A Research Methodology forAnalysing Australias Skilled Migration Policy," International Journal of Business and Economic Affairs (IJBEA), Sana N. Maswadeh, vol. 3(1), pages 21-32.
    4. Lywylyn Santamarina Mendoza & Gloria P. Gempes, 2018. "Quality of work life of food chain employees in region XI: A causal model," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 4(2), pages 90-108.
    5. Jose G. Vargas-Hernandez & Omar Cristian Vargas Gonzalez, 2020. "Innovation in Utility Craftsmanship: Analysis Based on Human Capital," International Journal of Business and Economic Affairs (IJBEA), Sana N. Maswadeh, vol. 5(1), pages 42-50.
    6. Majid Moradi & Zohreh Sayyad, 2020. "Investigating the various models and viewpoints of the corporates social responsibilities," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 6(5), pages 188-196.
    7. Lia Dahlia Iryani* & Winwin Yadiati & Eddy Mulyadi Supardi & Iwan Triyuwono, 2019. "The Moderating Effect of Shariah Governance on Financial and Maqasid Shariah Performance: Evidence from Islamic Banks in Indonesia," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 5(2), pages 264-274, 02-2019.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Laura Girella & Paola Rossi & Stefano Zambon, 2019. "Exploring the firm and country determinants of the voluntary adoption of integrated reporting," Business Strategy and the Environment, Wiley Blackwell, vol. 28(7), pages 1323-1340, November.
    2. Siti Maimunah Yahya Senawat & Srihadi Winarningsih Zarkasyi & Ida Farida Abdul Gafur, 2018. "The effects of corporate social responsibility on financial performance on Indonesian public listed tobacco companies," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 4(6), pages 267-279.
    3. Bruno, Valentina & Claessens, Stijn, 2010. "Corporate governance and regulation: Can there be too much of a good thing?," Journal of Financial Intermediation, Elsevier, vol. 19(4), pages 461-482, October.
    4. Claessens, Stijn & Perotti, Enrico, 2007. "Finance and inequality: Channels and evidence," Journal of Comparative Economics, Elsevier, vol. 35(4), pages 748-773, December.
    5. García-Sánchez, Isabel-María & Suárez-Fernández, Oscar & Martínez-Ferrero, Jennifer, 2019. "Female directors and impression management in sustainability reporting," International Business Review, Elsevier, vol. 28(2), pages 359-374.
    6. repec:onb:oenbwp:y:2010:i:1:b:1 is not listed on IDEAS
    7. Santanu Kumar Ghosh & Santi Gopal Maji, 2019. "Profitability of Banks in India: Impacts of Market Structure and Risk," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 9(6), pages 1-10.
    8. Ahamed, Md Mostak, 2012. "Market Structure and Performance of Bangladesh Banking Industry: A Panel Data Analysis," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 35(3), pages 1-18, September.
    9. Claessens, Stijn, 2017. "Regulation and structural change in financial systems," CEPR Discussion Papers 11822, C.E.P.R. Discussion Papers.
    10. Sándor Gardó, 2010. "Bank Governance and Financial Stability in CESEE: A Review of the Literature," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 6-31.
    11. Emma García-Meca & María-Victoria Uribe-Bohórquez & Beatriz Cuadrado-Ballesteros, 2018. "Culture, Board Composition and Corporate Social Reporting in the Banking Sector," Administrative Sciences, MDPI, vol. 8(3), pages 1-23, July.
    12. Olga Lazareva & Andrei Rachinsky & Sergey Stepanov, 2008. "Corporate Governance, Ownership Structures and Investment in Transition Economies: the Case of Russia, Ukraine and Kyrgyzstan," Working Papers w0119, New Economic School (NES).
    13. Shashank Bansal & Maria Victoria Lopez-Perez & Lazaro Rodriguez-Ariza, 2018. "Board Independence and Corporate Social Responsibility Disclosure: The Mediating Role of the Presence of Family Ownership," Administrative Sciences, MDPI, vol. 8(3), pages 1-21, July.
    14. Harabi, Najib, 2007. "State of Corporate Governance in Arab Countries: An Overview," MPRA Paper 4566, University Library of Munich, Germany.
    15. Jounghyeon Kim, 2020. "Determinants of Corporate Bankruptcy: Evidence from Chaebol and Non‐Chaebol Firms in Korea," Asian Economic Journal, East Asian Economic Association, vol. 34(3), pages 275-300, September.
    16. Jere R. Francis & Shawn Huang & Inder K. Khurana & Raynolde Pereira, 2009. "Does Corporate Transparency Contribute to Efficient Resource Allocation?," Journal of Accounting Research, Wiley Blackwell, vol. 47(4), pages 943-989, September.
    17. Shkendije Himaj, 2014. "Corporate Governance in Banks and its Impact on Risk and Performance: Review of Literature on the Selected Governance Mechanisms," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 3(3), pages 53-85.
    18. Samaha, Khaled & Khlif, Hichem & Hussainey, Khaled, 2015. "The impact of board and audit committee characteristics on voluntary disclosure: A meta-analysis," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 24(C), pages 13-28.
    19. P. Fahad & P. Mubarak Rahman, 2020. "Impact of corporate governance on CSR disclosure," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 17(2), pages 155-167, September.
    20. Nataliia Osina, 2021. "Global governance and gross capital flows dynamics," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(3), pages 463-493, August.
    21. Chilosi, Alberto & Damiani, Mirella, 2007. "Stakeholders vs. shareholders in corporate governance," MPRA Paper 2334, University Library of Munich, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:apb:jabsss:2017:p:292-304. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Professor Dr. Usman Raja (email available below). General contact details of provider: https://tafpublications.com/platform/published_papers/9 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.