Bio

BIOGRAPHY OF ERASMUS S. KAIJAGE

Erasmus S. Kaijage is currently a Barclays Endowment Chair Professor at the University of  Nairobi , School of Business, in Kenya starting January 2011. Erasmus holds a Bachelor of Arts degree in finance from the University of Dar esSalaam, Tanzania; an MBA (Finance) from Catholic University of Leuven, Belgium and a
PhD (Finance) from the University of Sheffield, UK.

Publications


2015

Elly, D, Kaijage ES.  2015.  DEMAND SIDE FACTORS AND ACCESS TO EXTERNAL FINANCE BY SMALL AND MEDIUM MANUFACTURING ENTERPRISES IN NAIROBI, KENYA, 28- 29TH -5-2015. 15TH INTERNATIONAL CONFERENCE ON AFRICAN ENTREPRENEURSHIP AND SMALL BUSINESSES DEVELOPMENT. , WHITE SANDS HOTEL, DAR ES SALAAM, TANZANIA. Abstractdemand_side_factors_and_access_to_external_finance_by_small_and_medium_manufacturing_enterprises_in_nairobi_kenya-2.pdf

This study investigates how demand-side factors affect access to external finance by small and medium manufacturing enterprises (SMMEs) in Nairobi, Kenya. The demand-side factors considered in the study are firm characteristics, financial management practices and entrepreneur characteristics. The study employs an exploratory survey design utilizing quantitative methods in data collection and analysis. Data is analyzed using descriptive and inferential statistics. Logistic regression is used to test the relationship between demand-side factors and access to external finance because of the dichotomous nature of the dependent variable. The findings of the study show that some of the demand-side factors significantly influence access to external finance. These factors include entrepreneur’s networks, ethnic orientation, firm growth and earnings volatility. The study recommends further probing of the role of good financial management practices such as preparation and usage of financial information on access to external finance in diverse settings and industries. It is also important for entrepreneurs and providers of the finances to establish and support sustainable networks that guarantee enterprise growth. Though ethnic orientation influence access to external finance, policy efforts should be put in place to ensure there is efficiency in the market for external financing and certain entrepreneurs are not disenfranchised on the basis of their ethnic background. As firm growth also influences access to finance, managers of the SMMEs should endeavor to attain steady and predictable earnings growth with minimal deviations. Such efforts would help minimize financial constraints caused when external funds are inaccessible.

Key Words: Demand side factors, Small and medium manufacturing enterprises

2014

Kaijage, ES, Elly D.  2014.  FINANCIAL INTEGRATION RELATIONSHIPS AND LINKAGES IN EAST AFRICAN COMMUNITY (EAC) EQUITY MARKETS, OCTOBER 2014. ORSEA. , lower Kabete Abstractfinancial_integration_relationships_and_linkages_in_east.pdf

This paper investigates financial integration and linkage relationships amongst equity markets in East Africa Community over time by determining the speed and levels of integration using monthly market return data for the period 2007 to 2013. The study also examines the short run and long run relationships amongst the markets. The study was motivated by the ongoing plans of establishment of the East Africa Monetary Union
(EAMU) which will be characterized by mobility of labor and capital as factors of production across the member states. Using beta and sigma convergence measures, the study notes that financial integration
has not deepened in the EAC over the years though there are trends towards full integration. Correlation analysis suggests strong significant relationships amongst EAC equity market returns. Johansen Cointegration tests suggest existence of three stochastic trends in the equity markets. Vector auto regression analysis and impulse response analysis suggest linkages amongst the markets hinging on the NSE and mean reversion in all the equity markets. The study findings suggest that the EAC equity markets are weak form efficient and there are arbitraging opportunities across the equity markets. The responses to the shocks in any of the markets are found to be dependent on the relationships between the markets. From the study findings, it is inferred that the roadmap to EAMU should be fast tracked by facilitating efficiency in the EAC markets where rates of return are market determined. Policy initiatives should be put in place to eliminate arbitrage opportunities across the markets and to encourage capital mobility through the equity markets. To support integration, there should be academic studies on the existence of home bias in the
EAC equity market segments. Key Words: East Africa Community (EAC), East Africa Monetary Union (EAMU), Dar es Salaam Stock Exchange (DSE), Financial Integration, Nairobi Securities Exchange
(NSE), Uganda stock Exchange (USE).

Kaijage, ES, Nzioka OM.  2014.  INVESTIGATING THE INFLUENCE OF FIRM CHARACTERISTICS ON FINANCING OF MICROFINANCE INSTITUTIONS IN KENYA, May 2014. THE 14TH INTERNATIONAL CONFERENCE ON AFRICAN BUSINESS AND SMALL BUSINESS (ICAESB). , Dar es Salaam, Tanzania Abstract

This paper investigates whether firm characteristics have an influence on financing of SMEs in Kenya using a sample of 12 Microfinance firms. Primary and secondary data were collected and subjected to multiple regression and correlation analysis in order to achieve the study objectives. The independent variables of the study are firm characteristics, which include; size measured by total assets, profitability measured by ROA and ROE, then risk, while the dependent variable is the total debt of the firm divided by the Equity and the ratio of capital to total assets. Results of this study suggest that, a strong negative association between return on equity and total assets has an equally strong negative effect/influence on the debt equity ratio. This implies that, the two variables have a strong negative effect on the financing of Micro Finance institutions. Overall, the implications of the findings of this study support both the trade-off theory and the pecking order theory of capital structure.

Kaijage, ES, Elly D.  2014.  EFFECT OF CORPORATE CHARACTERISTICS ON CAPITAL STRUCTURE DECISIONS OF SMES: A CASE OF DTMs IN KENYA, 30 MAY 2014. THE 14TH INTERNATIONAL CONFERENCE ON AFRICAN BUSINESS AND SMALL BUSINESS (ICAESB). , THE UNIVERSITY OF DAR ES SALAAM BUSINESS SCHOOL (UDBS) Abstracteffect_of_corporate_characteristics_on_capital_structure_decisions_of_smes.pdf

The choice between debt and equity for a business firm has implications on the value of a firm as well as strategic importance for corporate managers. Previous studies have addressed the issue of capital structure decisions from the point of view of large firms. The capital structure of Small and Medium - sized Enterprises (SMEs) has become a research topic only recently despite the fact that SMEs play a very crucial role in fostering growth and employment in many countries. Some research studies have investigated the relationship between capital structure mix as an independent variable and specific corporate characteristics as dependent variables. This paper reverses this order by investigating the influence of various corporate characteristics on the capital structure of deposit taking microfinance institutions (DTMs) in Kenya. DTMs are a special group of SMEs in Kenya, which create money through deposit mobilization and lending and are regulated by the Central Bank of Kenya (CBK). Using secondary data from financial reports of 7 out of 9 Licensed DTMs in Kenya for the period 2008 to 2012, this study has applied ordinary least squares (OLS) fixed - effect regression models to estimate the influence of firm corporate characteristics on capital structure measure of debt equity ratio. The corporate characteristics considered are: size, profitability, liquidity, growth, tangibility of assets and volatility of earnings. The study findings suggest that size and growth positively influence, in a significant way, the capital structure of DTMs in Kenya. Furthermore, liquidity, profitability, and tangibility of assets have been found to be negatively influencing the capital structure of the DTMs. These findings generally concur with the predictions of the pecking order theory and the signaling effects of capital structure decisions of firms.

Key Words: Deposit taking microfinance institutions (DTMs), Microfinance institutions (MFIs), Small and Medium Enterprises (SMEs), Capital Structure and Corporate characteristics.

2013

Kaijage, E, Wheeler D.  2013.  Supporting Entrepreneurship Education in East Africa Report for Presentation to Stakeholders. Abstractentrepreneurship_education_in_east_africa._kaijage_and_wheeler_2013.pdfWebsite

Executive Summary
The University of Nairobi School of Business and Plymouth University Business School were commissioned by the UK Department for International Development to assess the capacity of business schools and other institutions to support entrepreneurship through development of entrepreneurship education in East Africa.
The research was carried out in three phases:
 A literature review and desk research on entrepreneurship education and training in three case study countries: Kenya, Tanzania an South Sudan;
 Semi- structured Interviews with 61 stakeholders and a survey of 420 stakeholders in the three case study countries which explored perceptions of entrepreneurship and entrepreneurship education and training; and
 A workshop which further refined insights from the interviews and survey
The main conclusion from the literature review and desk research was that there is a gulf between formal business education in East Africa and the needs of entrepreneurs, especially for women, young people and marginalised groups. It is essential, therefore, to develop a new paradigm for entrepreneurship education that is grounded in the economic and social context of the entrepreneurs.
A major finding from the interviews, survey and workshop was the relative lack of interest among graduates and unemployed youth in pursuing self-employment compared to corporate or public sector employment. Other important findings included the importance of:
 introducing entrepreneurship at all levels of education from primary to postgraduate;
 social enablers such as trust building, communications and negotiation skills for the success of entrepreneurs;
 experiential over theoretical learning;
 mentoring, coaching and peer-peer learning over other forms of learning support;
 context specific skills development for entrepreneurs;
 a commonly held definition of entrepreneurship that embraces broader societal and developmental goals
Stakeholders identified the need for:
 integrated policy making between governments, the private sector, civil society organisations and educational institutions;
 special consideration for disadvantaged groups in policy formulation;
 social and cultural change eg through social mobilisation;
 agreed conceptual frameworks for entrepreneurship promotion and entrepreneurship education (allowing for cultural and linguistic differences);
 integrated interventions addressing all levels of education: primary, and secondary schools, colleges and vocational training schemes and universities/business schools; and
 the development of curricula and resources appropriate for all levels of intervention.
The need for experiential learning opportunities and mentoring, combined with relative disinterest in pursuing self-employment and entrepreneurship as a chosen career path means that significant levels of training and capacity building, supplemented by processes of behavioural and social change will need to be explored if ‘systemic entrepreneurship’ is to be realised in East Africa.
Based on from these findings, six cross cutting themes for future capacity building are identified:
 Developing Shared Knowledge and Conceptual Frameworks
 Enhancing National Education Policies and Practices
 Developing Accessible Learning Materials
 Training Trainers and Building Enterprise Educator Support Networks
 Supporting Social Networks and the Informal Sector
 Embedding Research and Continuous Improvement
Recommendations are made in six areas, based on the results of the research:
 Presentation and dissemination of findings;
 Convening conferences of interested parties;
 Establishing country based networks of enterprise educators;
 Establishing a system for learning object capture and distribution using various media;
 Developing integrative pilot projects in focal countries and elsewhere reflecting the analysis of this report and the need for both rural and urban entrepreneurship education initiatives focused on the young, women and disadvantaged groups; and
 Developing mechanisms for sharing the results of pilot projects and publicising outcomes..

Kaijage, PE, Wheeler PD.  2013.  Supporting Entrepreneurship in East Africa.

2012

Kaijage, ES, Nzioka OM.  2012.   Determining the Extent of Financial Integration in East Africa Using Beta Convergence and Cointegration Analysis. . Published in the conference proceedings of the Operations Research Society of Eastern Africa.

2011

2008

1994

Kaijage, ES.  1994.   Designing an effective credit policy: . "Marketing Sensitization Seminar" for AGIP (T) Ltd., organized and published by the Marketing Department, Faculty of Commerce and Management, University of Dar - es - Salaam.

1993

Kaijage, ES.  1993.  Financial Sector Restructuring in Tan zania. . "Strategic Management Challenges of the 21st century Tanzania", Organized and published by the Faculty of Commerce and Management, University of Dar es Salaam.

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