Publications


2015

Nyamute, W, Batta N.  2015.  Effect Of CSR On Financial Performance In The Banking Sector Evidence From The NSE. International Journal of Asian Academic Research Associates. 1(26) Abstracteffect_of_csr__on_financial_performance_in_the_banking_sector_evidence_from_the_nse.pdf

Corporate Social Responsibility (CSR) is increasingly being embraced by organizations worldwide. This study aims to investigate the relationship between CSR and financial performance for the banks listed on the Nairobi Securities Exchange (NSE). The study analyzed ten of the eleven banks listed on the NSE for the period 2008 to 2012 using data obtained from audited annual reports and other publications by the banks including information from their websites. The analysis was done using multiple regression analysis and the correlation coefficient (r) was calculated together with the coefficient of determination (r2) to further determine the relationship between the variables. The research found that there was an insignificant positive relationship between CSR and financial performance in the Kenyan banking industry with CSR having a very minimal effect on financial performance. The model shows that, for every one unit increase in CSR, the firm’s financial performance increases by 0.00002 units. The study further concluded that in the Kenyan banking industry, CSR activities are not undertaken for the purpose of improving the banks financial performance but are undertaken for other reasons such as building brand image and building customer loyalty.
Key Words: Corporate Social Responsibility (CSR), Financial Performance, Nairobi Securities Exchange (NSE), Kenyan banking Industry.

Nyamute, W, Lishenga J, Oloko M.  2015.  The Relationship between Investor Behavior and Portfolio Performance at the Nairobi Securities Exchange. International Journal of Multidisciplinary Research and Development. 2(5):548-551. Abstract

Abstract
Extreme unpredicted momentum in global indices and security prices associated with uncertainty and
unexplained stock price movements have made life difficult for a rational investor who relies on market
fundamentals to make investment decisions. This study attempted to determine the contribution of
investor behavior in influencing investor portfolio performance at the Nairobi Securities Exchange using
a sample of 385 individual stock investors. The relationship between investor behavior and portfolio
performance was tested using multiple regression. The overall model was statistically significant
indicating that investor behavior influences portfolio performance with herding and disposition effect
having a positive effect on portfolio performance while overconfidence has a negative effect on
performance. The findings provide an eye-opener and basis of appreciation of the effect of behavioral
biases on the results of trading activities. Stock market players can use these findings to understand the
market dynamics and incorporate behavioral factors in analysing capital markets performance.
Keywords: Investor behavior, herding, overconfidence, disposition effect and portfolio performance

Nyamute, W, Lishenga J, Oloko M.  2015.  The Effect of Investment Style on Portfolio Performance: Evidence from the Nairobi Securities Exchange. International Journal of Multidisciplinary Research and Development. 2(5):552-554. Abstractthe_effect_of_investment_style_on_portfolio_performance_evidence_from_the_nse.pdf

The investors must trade to make a return and the choice of where to invest and how many times to trade
lies with the investor. This study sought to determine whether the investment styles adopted by the
investors on the Nairobi Securities Exchange have an effect on their portfolio performance. The
relationship was tested using multiple regression analysis on a sample of 385 individual retail investors.
The overall model was statistically significant indicating that investment style influences portfolio performance. Passive investment style and Growth oriented investment style have a significant
relationship with portfolio performance with growth having a negative effect while passive style has a
positive effect. The implication here is that investors who actively trade should cautiously evaluate the
implication on their portfolio to avoid the negative effects.
Keywords: Investment style, passive, active, value, growth, portfolio performance

Iminza, NW, L GW, Kiragu ND.  2015.  BANK SIZE AND OCCUPATIONAL FRAUD RISK: EMPIRICAL EVIDENCE FROM COMMERCIAL BANKS IN KENYA. 1(1):1-10. Abstract

Association of Certified Fraud Examiners report that a typical organization loses at least 5% its annual revenue loss through occupational fraud. Further statistics indicate In a list of 22 industry categories, occupational fraud risk is highest in commercial banks than any other industry globally. Occupational fraud risk is therefore a global problem. The problem is that Kenya has the highest incidences of fraud is East Africa and that this vice continue to erode investors and the overall financial intermediation role of commercial banks. In Kenya, fraud contributes to 31.5% of the deterrents of global competitiveness. The study set to determine the effect of bank size on occupational fraud risk in commercial banks in Kenya. A representative sample of 30 banks out of the 43 commercial banks licensed by Central Bank of Kenya by June 30, 2012 was used in this study. Bivariate linear regression was used to test the null hypothesis; there is no relationship between bank size and occupational fraud risk in commercial banks in Kenya. The findings from this study are, a Cronbach’s alpha of 0.97 for the stimulus variable, a positive correlation of r=0.518 between bank size and occupational fraud risk. In addition the study reports a significant 26.8% influence of bank size on occupational fraud risk in commercial banks in Kenya. These results provide insights into the deterrent and management of occupational frauds in Kenya and similar developing countries.

Iminza, NW, Kiragu ND, L GW.  2015.  OPERATIONAL GOVERNANCE AND OCCUPATIONAL FRAUD RISK IN COMMERCIAL BANKS IN KENYA: A POSITIVISM APPROACH. European Journal of Business Management. 2(1):401-423. Abstract

Association of Certified Fraud Examiners caution that globally, a typical organization loses at
least 5% its annual revenue through occupational fraud. Further statistics indicate that
occupational fraud risk is highest in commercial banks than any other industry globally.
Occupational fraud risk is therefore a global problem. The problem is that Kenya has the highest
incidences of fraud is East Africa. The study set to determine the effect of operational
governance on occupational fraud risk in commercial banks in Kenya. Using a positivism
research paradigm and a descriptive research design, a representative stratified sample of 30
commercial banks out of the 43 commercial banks licensed by Central Bank of Kenya by June
30, 2012 was used in this study. Principal Component Analysis, Varimax, Orthogonal was used
for Factor analysis. Kaiser-Meyer-Olkin test of sampling adequacy was used together with
Bartlett’s test of Sphericity to assess factorability of the predictor variable. Cronbach’s alpha
coefficient was used to assess the data collection tool for stability and consistency. Factor
analysis was used to asses construct validity. In order to test the null hypothesis, that is, there is
no relationship between operational governance and occupational fraud risk in commercial banks
in Kenya, model fitness, ANOVA and Regression coefficients were generated and interpreted.
The study found that there is a positive but weak correlation between operational governance and
occupational fraud risk. Further, the study found that the relationship is not statistically
significant. These results provide insights into the occupational fraud risk controls relevance and

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