Bio

PROF. JOSIAH O. ADUDA

Is currently the Dean School of Business

ACADEMIC AWARDS:

  • Deans Research Grant, University of Nairobi (2007 & 2008)
  • IUCEA/EADB Scholarship to Pursue PhD in Finance at the University of Dar es Salaam.
  • University of Nairobi Scholarship (1991-1993) to Pursue MBA degree 

STRENGTHS AND COMPETENCIES

Publications


2015

and Magutu PO, ANRBJ.  2015.  Is there a Link between Supply Chain Strategies and Firm Performance? Evidence from Large-Scale Manufacturing Firms in Kenya Journal of Operations and Supply Chain Management. 8(2):1-22.
J, A, K O,.N O.  2015.  Demographic Diversity in Top Management Team and Financial Reporting Quality in Commercial State Corporations in Kenya. Donnish Journal of Accounting and Taxation. 1(1):001-016. Abstract

The purpose of the paper is to examine the effect of demographic diversity in Top Management Team (TMT) on financial
reporting quality in commercial state corporations. The study adopted correlational and longitudinal research design and
stepwise regression analysis of FRQ variables on a set of demographic diversity variables in TMT. The findings provide
considerable evidence to suggest that TMT demographic diversity are associated with financial reporting quality
measured by fundamental qualitative characteristics of accounting information, earnings management, timeliness in
reporting and disclosure quality. The research implication is that; in general, demographic diversity in TMT- gender, age,
education, tenure and functional background may have important implication for financial reporting quality under
different measures. The value of this paper is to extend Prior research by addressing the potential effects of TMT
demographic diversity on FRQ. The findings reported in this paper provide novel insight to empirical financial reporting
quality literature in commercial state corporations.

Okiro, K, Aduda J, Omoro N.  2015.  THE EFFECT OF CORPORATE GOVERNANCE AND CAPITAL STRUCTURE ON PERFORMANCE OF FIRMS LISTED AT THE EAST AFRICAN COMMUNITY SECURITIES EXCHANGE. European Scientific Journal. 11(7):517-546. Abstractcorporate_governance_capital_structure_and_firm_perfromance_eacse.pdf

The purpose of the study was to establish the effect of corporate governance and capital structure on performance of firms listed at the East African community securities exchange. Specifically the study sought to establish the effect of capital structure on the relationship between corporate governance and firm performance of listed companies in Kenya, Tanzania, Uganda, Rwanda and Burundi. Based on the agency theory this study builds a comprehensive framework to answer the research question on whether good
corporate governance affects firms performance by integrating capital structure into the governance model. A census survey was carried out on all the 98 listed companies between 2009 and 2013 in Nairobi Securities
Exchange, Uganda Securities Exchange, Dar es Salaam Stock Exchange and Rwanda Stock Exchange. Out of the 98 firms that were targeted, 56 were analyzed constituting 57%. The findings revealed that the there was a significant positive relationship between corporate governance and firm performance. The study also confirmed that there is a positive significant intervening effect of capital structure (leverage) on the elationship between corporate governance and firm performance. From a theoretical perspective,
this study not only explains how corporate governance affects firm performance, but also uncovers the importance of capital structure in a corporate governance system. Keywords: Corporate governance, capital structure and firm performance

2014

Mogikoyo, MN, Pokhariyal GP, O AJ.  2014.  Effects of computer and internet access and skills on attitudes towards video-based distance learning in institutions higher education in Kenya. Prime Journal of Social Sciences. 3(11):926-931. Abstract

This paper explores the possibility of using Videoteleconferencing (VTC) Technology to enhance distance learning mode of education for Institutions of Higher Learning in Kenya. It looks at the readiness with regard to the level of Infrastructure development in terms of availability of computers and the Internet. The competence of resource persons and students in use of computers and the Internet are also explored in this study. The study further tests the effects of Computer and Internet access on the attitude towards use of Videoteleconferencing or Video-based distance learning. Videoteleconferencing or Videoconferencing is a form of E-learning that falls in the category of Synchronous learning that involves distance learning students having a live instructor teaching via the Internet (Obringer, 2001). Implementation of Videoconferencing in Institutions of Higher Learning in Kenya would facilitate access of higher education to all Kenyans in the various towns as well as make Institutions of Higher Learning to sustain themselves due to additional revenue generated. The services of experts working in industry could be made available to the various Institutions thus saving on overhead expenses like office space, healthcare, pension plan, sabbaticals, secretarial help and infrastructure while at the same time the experts will disseminate a wealth of knowledge and experience to students. This research was a case study of the University of Nairobi, School of Business and School of Education. The findings indicated that 74.2% of the respondents had a positive attitude towards Videoconferencing. This implies that Videoconferencing is a form of learning that can be accepted by staff and students.

Key words: Video-based distance learning, videoconferencing, synchronous learning, electronic learning.

Aduda, J, Kiragu P, Ndwiga JM.  2014.  The Relationship between Agency Banking and Financial Performance of Commercial Banks in Kenya. Journal of Finance and Investment Analysis. 2(4):97-117. Abstractthe_relationship_between_agency_banking_and_financial__performance_of_commercial_banks_in_kenya.pdf

Banking agents are usually equipped with a combination of point-of-sale (POS)card reader, mobile phone, barcode scanner to scan bills for bill payment transactions, Personal Identification Number(PIN) pads, and sometimes personal computers (PCs) that connect with the bank’s server using a personal dial-up or other data connection. This research used the descriptive design method using secondary data gathered from the commercial banks in Kenya that had adopted agency banking in Kenya. The population of the study was the 10 commercial banks in Kenya that had adopted agency banking by the end of 2012 namely Equity Bank, Co-operative Bank, KCB Bank, Post Bank, Family Bank, Chase Bank ,Consolidated Bank, Diamond Trust Bank, Citibank and NIC Bank. Annual reports on individual banks’ financial performance were used to extract financial performance indicators. CBK’s annual report and supervisory reports were also used to establish the number of agents registered and the total transactional value conducted through the agents. The variable of interests were the cash withdrawal and deposit transactions done through agents, number of active agents, return on assets, cost to income ratio and staff cost to revenue ratio. JEL classification numbers: G24
Keywords: Agency Banking, Financial Performance and Kenya.

Aduda, J, Chogii R, Murayi MT.  2014.  The Effect of Capital Market Deepening on Economic Growth in Kenya. Journal of Applied Finance & Banking. 4(1):141-159. Abstractthe_effect_of_capital_market_deepening_on_economic_growth_in_kenya.pdf

The capital market is important since it connects the financial sector with other non-financial sectors of the economy. This study examines the effect of Capital Market Deepening on economic growth in Kenya. Controversy exists among researchers on the role of deep capital markets in growth. The finance growth nexus forms the basis of the research with the capital markets assumed to have a supply leading effect on economic growth. This study aimed at addressing the issue by incorporating a measure of bond market turnover. The research objective was to determine the effect of capital market deepening on economic growth in Kenya. The study used data from the Nairobi Securities Exchange from 1992-2011 and GDP data from The Kenya National Bureau of Statistics. The study therefore concludes that Capital Market Deepening has a positive effect on GDP growth in Kenya and therefore lends support to the finance growth nexus. The Capital market plays an important role in economic growth and therefore the study recommends the government should take policy initiatives to foster growth of the capital market and especially so the bond market which is instrumental in providing finance for development of the Vision 2030 socio economic blue print.

2013

Aduda, J, Ndaita SB.  2013.  Management Accounting changes and Practices adopted by Large Manufacturing Companies in Nairobi, Kenya. The Operations Research Society of Eastern African Journal,. 3(2)
Aduda, J, Chogii R, Magutu PO.  2013.  AN EMPIRICAL TEST OF COMPETING CORPORATE GOVERNANCE THEORIES ON THE PERFORMANCE OF FIRMS LISTED AT THE NAIROBI SECURITIES EXCHANGE. European Scientific Journal. 9(13) Abstractan_empirical_test_of_competing_corporate_governance_theories_on_the_performance_of_firms_listed_at_the_nairobi_securities_exchange.pdf

The focus of this study was on linking these variables to the contrasting and competing theories of Corporate Governance such as Agency Theory, Stewardship Theory, and Resource Dependence Theory, among others. The role of the Board as a corporate governance tool is widely acknowledged in much of the literature on Corporate Governance. Scholars and practitioners have sought to understand the relationship between various board composition variables and some measure of performance as a means of establishing what the significant board composition variables are and the likely effect of adding or dropping some of these variables in the process of establishing effective boards. This study investigated significance of the board composition variables of size of the board, proportion of outside directors, proportion of inside directors, and the role of CEO duality on firm performance. This study found that the overall regression models for firm performance for both the Return on Assets and Tobin Q ratio are significant. This means that the board composition variables cited above are important predictors of firm performance. The study also found that the significance of the individual variables in the overall specification models have differing significant variables on the basis of the measure of performance selected for the firm. For example, when firm performance is measured by the Return on Assets, the significant variable in the model is the size of the board. Under the Tobin Q ratio firm performance measure, on the other hand, proportion of outside directors is the significant variable. These results imply that under the ROA, there seems to be a dominance of the Resource Dependence Theory while under the Tobin Q ratio, the Agency Theory dominates. The study also found that most surveyed firms tended to favour outside directorships over inside directorships. The prevalence of outside directorships was twice as much as for inside directorships and is in favour of the Agency Theory. The study also found that surveyed firms tended to favour having different persons occupying the two positions of CEO and that of the Chairman of the Board which is in line with the Agency Theory.
Keywords: Corporate Governance, Firm Performance, Listed Firms, Nairobi Securities Exchange & Kenya

2012

ADUDA, JO.  2012.  Corporate Governance Practices, and the Relationship between Corporate Governance and Financial Performance among Broadcasting Stations in Kenya. African Journal of Business and Management. , Nairobi: AJBUMA publishing
ADUDA, JO.  2012.  Foreign Exchange Reserves Risks and Management Strategies adopted by the Central Bank of Kenya. African Journal of Business and Management. : AJBUMA publishing

2011

ADUDA, JO.  2011.  Investment Practices among Savings and Credit Co-operative Societies (SACCOs) in Nairobi. Journal of Modern Accounting and Auditing. : David Publishing Company
ADUDA, JO.  2011.  The Relationship between Credit Risk Management and Profitability among the Commercial Banks in Kenya. Journal of Modern Accounting and Auditing. : David Publishing Company
ADUDA, JO.  2011.  Test for Investor Rationality for Companies Listed at the Nairobi Stock Exchange. Journal of Modern Accounting and Auditing, Vol 7, No. 8, 827-840. : David Publishing Companytest_for_investor_rationality_for_companies_listed_at_the_nse.pdf
ADUDA, JO.  2011.  The Applicability of the Constant Dividend Model for Companies Listed at the Nairobi Stock Exchange. Journal of Financial Studies & Research. : IBIMA Publishing

2010

ADUDA, JO.  2010.  THE APPLICABILITY OF CONSTANT DIVIDEND MODEL An Empirical Test of Applicability of the Model by Companies Listed At the Nairobi Stock Exchange. African Journal of Business & Management (AJBUMA). : AIBUMA Publishing Abstractthe_applicability_of_the_constant_dividend_model_for_companies_listed_at_the_nairobi_stock_exchange.pdf

The decision to pay out earnings or retain dividends has been a subject of debate for many scholars. The effect of dividend on the firm value and cost of capital have been covered in attempt to resolve the dividend puzzle. This research paper tests the applicability of constant dividend model by companies listed at the Nairobi stock exchange. Data was collected from annual reports and share price schedules obtained from Nairobi stock exchange and Capital market Authority for a population of 20 companies that paid dividends consistently from 2002 to 2008. The data was then analyzed by re-computing the dividends that should have been paid if the dividend constant model was applied. This recomputed figure was later compared to the dividend as paid out by the companies thought the years of study. Paired sample t-test statistic was also performed to determine whether there is a significant difference between the two dividend figures. The findings of the research established that the dividend model was not employed by the companies listed at the Nairobi stock exchange. Most firms instead adopted stable and predictable policy where a specific amount of dividend per share each year was paid periodically. In some years there was a slight adjustment of the dividend paid after an increase in earnings, but only by a sustainable amount. The study shows that the relationship between the stock market prices and the dividend paid from the constant dividend model is uneven from one year to another and where there was a relationship it was insignificant. Though a share would be highly priced, a high dividend per share was not always declared.

ADUDA, JO.  2010.  MARKET REACTION TO STOCK SPLITS Empirical Evidence from the Nairobi Stock Exchange. African Journal of Business & Management (AJBUMA). : AIBUMA Publishingmarket_reaction_to_stock_split.pdf

2006

ADUDA, JO.  2006.  The Distribution of Financial Ratios of Companies Quoted at the Nairobi Stock Exchange: An Empirical Evidence.. African Journal of Business & Management (AJBUMA). : AIBUMA Publishing Abstract

The decision to pay out earnings or retain dividends has been a subject of debate for many scholars. The effect of dividend on the firm value and cost of capital have been covered in attempt to resolve the dividend puzzle. This research paper tests the applicability of constant dividend model by companies listed at the Nairobi stock exchange. Data was collected from annual reports and share price schedules obtained from Nairobi stock exchange and Capital market Authority for a population of 20 companies that paid dividends consistently from 2002 to 2008. The data was then analyzed by re-computing the dividends that should have been paid if the dividend constant model was applied. This recomputed figure was later compared to the dividend as paid out by the companies thought the years of study. Paired sample t-test statistic was also performed to determine whether there is a significant difference between the two dividend figures. The findings of the research established that the dividend model was not employed by the companies listed at the Nairobi stock exchange. Most firms instead adopted stable and predictable policy where a specific amount of dividend per share each year was paid periodically. In some years there was a slight adjustment of the dividend paid after an increase in earnings, but only by a sustainable amount. The study shows that the relationship between the stock market prices and the dividend paid from the constant dividend model is uneven from one year to another and where there was a relationship it was insignificant. Though a share would be highly priced, a high dividend per share was not always declared.

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