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• Effects of Financial Innovations on Performance of Commercial Banks in Kenya

  V. Kombe

  African Journal of Commercial Studies (2023). Volume 2, Number 1, 2023 | pp 12 – 26

  
  

  Abstract

  Understanding how financial innovations affect Kenya's commercial banks' performance is the main goal of the current study. The United States has long been a leader in financial innovation. However, in terms of financial innovation, China and African nations like Kenya and Nigeria have taken the lead globally. Kenya presently leads the world in mobile money services. The conflicting results of the positive and negative performance of commercial banks as a result of financial innovations served as the impetus for the current study. A literature review technique was adopted in the research. The study's overall conclusions demonstrate that financial innovations improve financial performance, as seen by an increase in transactions, the creation of convenience, and decreased maintenance costs. Banks that are incorporating financial innovations are therefore better positioned to boost their revenue and customer satisfaction, both of which are linked to increased performance. According to the report, authorities should make sure that there are laws in place that can foster an environment where banks may keep innovating.

  Abstract
  Understanding how financial innovations affect Kenya's commercial banks' performance is the main goal of the current study. The United States has long been a leader [...]

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• Effects of Internal Control Components on Revenue Generation among Corporations in Kenya

  G. Mutua

  African Journal of Commercial Studies (2023). Volume 2, Number 1, 2023 | pp 1 – 11

  
  

  Abstract

  Most businesses have underperformed due to the ever-changing environmental forces that affect the operation of commercial enterprises. Strong internal control systems are necessary for the institutions to implement sound revenue collection practices. Regarding the link between internal control systems and revenue generation, actual research in this area is scarce. The main objective of this research was to determine the effects of internal control components on revenue generation in Kenyan companies. The specific objectives focused on the effects of control environments, risk assessment, and control activities in Kenya. Agency theory and stewardship theory will serve as the study’s foundation. The study engaged in a literature review approach to find out whether there is a direct relationship between the internal control components and revenue generation. The study reached the conclusion that budgets heavily rely on revenue collection, which is essential to financial management. According to the report, management should continuously improve internal control procedures to keep the system current with expanding operational capability, regular internal training, and employee development.

  Abstract
  Most businesses have underperformed due to the ever-changing environmental forces that affect the operation of commercial enterprises. Strong internal control systems are [...]

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• Mergers and Acquisitions and their effects on Firms objectives: African perspective

  M. Patrick, Y. Makolo, C. Kamau

  African Journal of Commercial Studies (2022). Volume 1, Number 2, 2022 | pp 27 – 38

  
  

  Abstract

  Mergers and acquisitions are widely seen as a long-term strategy for resolving financial problems in corporations. This research study that is primarily based on a desk review established that this commercial enterprise approach has given mixed findings, such as failing to establish that the stated factors led to the manner of mergers and acquisitions, nor has it published an increase in profitability of commercial enterprise financial performance due to mergers and acquisitions. However, all mergers and acquisitions are no longer unsuccessful due to some factors like monetary, advertising, and operational problems. Thus, there are other important factors that influence mergers and acquisitions, such as value creation, 'cultural' integration, and profitability. According to the study's findings, mergers and acquisitions have a positive impact on financial institutions' net income in the form of in-creased wealth, decreased effective spending, and increased revenue growth.

  Abstract
  Mergers and acquisitions are widely seen as a long-term strategy for resolving financial problems in corporations. This research study that is primarily based on a desk review [...]

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• Economic Impact of Mergers and Acquisitions in Corporate World: An African context

  F. Sogomi, M. Thuranira, C. Kamau

  African Journal of Commercial Studies (2022). Volume 1, Number 2, 2022 | pp 15 – 26

  
  

  Abstract

  Mergers and acquisitions have been pronounced and adopted with the profound need to combat the economic crisis and neutralize the detrimental effects of the COVID-19 pandemic. The uncertainty and risks involved in undertaking business operations have rapidly given rise to the strategic and systematic execution of cost-cutting measures and survival techniques. Mergers and acquisitions are one of the most effective strategies for the survival of a company through the creation of synergies and leveraging on economies of scale. The aim of the study was to establish the economic impacts of mergers and acquisitions in the corporate world. The study specifically sought to analyze and determine the extent to which mergers and acquisitions affect the selected variables constituting market share, shareholders’ wealth, portfolio diversification, employment, and economies of scale. The analysis apparently observed that mergers and acquisitions have no significant impact on shareholders’ wealth in the short run, as indicated by stock price movements, despite commanding an extensive customer base and market share, reduction of operation costs based on economies of scale, and mitigation of financial risks through portfolio diversification. The corporate employees always impede any kind of mergers and acquisitions due to the uncertainties and apprehensions associated with their engagements and organizational culture pitting them against the conventional narrative that change is inevitable.

  Abstract
  Mergers and acquisitions have been pronounced and adopted with the profound need to combat the economic crisis and neutralize the detrimental effects of the COVID-19 pandemic. [...]

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• Working Capital Management Practices and Financial Performance in Kenya

  D. Ogutu

  African Journal of Commercial Studies. (2022). Volume 1, Number 2, 2022 | pp 8 – 14

  
  

  Abstract

  Gross working capital and net working capital are the two components that can be used to establish the working capital concept. Between current liabilities and current assets, there is a difference called net working capital. Accounts receivable, cash, and inventory are examples of current assets because they are easily convertible into cash; on the other hand, current liabilities are those that are owed to the company right away, such as accounts payable, bills payable, and other financial instruments. This paper appraises the interactions between working capital management in terms of cash, inventories, receivables, and payables management in relation to financial performance. The study also highlights two theories relating to working capital management: the liquidity preference theory and the cash conversion cycle. The study concludes that different working capital components have varying effects on the financial performance of manufacturing enterprises. Some studies reveal a favorable association between the components of working capital, whereas others reveal a detrimental relationship.

  Abstract
  Gross working capital and net working capital are the two components that can be used to establish the working capital concept. Between current liabilities and current assets, [...]

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• Financial Performance and Investment Decision Making in Kenya

  E. Ateino

  African Journal of Commercial Studies (2022). Volume 1, Number 2, 2022 | pp 1 – 7

  
  

  Abstract

  Investors can gain insight into an organization's future by examining its financial performance, which shows whether its operations and profits are on track to increase as well as the outlook for its stock. Financial performance is a snapshot of an organization's economic health and the management's performance. Investors can gain insight into an organization's future by examining its financial performance, which shows whether its operations and profits are on track to increase as well as the outlook for its stock. Financial performance is a snapshot of an organization's economic health and the management's performance. This paper examines the interactions between profitability and liquidity in terms of financial performance and investment options. Based on the study's findings, management must evaluate profitability, solvency, and liquidity in order to fulfill goals like maximizing shareholders' value.

  Abstract
  Investors can gain insight into an organization's future by examining its financial performance, which shows whether its operations and profits are on track to increase [...]

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• Internal Auditor’s Role and Corporate Financial Performance in Kenya

  A. Midecha

  African Journal of Commercial Studies (2022). Volume 1, Number 1, 2022 | pp 36 – 42

  
  

  Abstract

  The internal auditor's job is to independently vouch for the efficiency of the organization's risk management, governance, and internal control systems. The purpose of this study was to ascertain the effects of risk assessment, financial statement audits, and internal auditor evaluations of controls on financial performance. This essay began by outlining the function of internal audit. An empirical study of the literature is then conducted with regard to financial performance and reviews of internal controls, financial statements, and risk management. The study found that there is evidence in the literature linking financial success and internal auditor functions.

  Abstract
  The internal auditor's job is to independently vouch for the efficiency of the organization's risk management, governance, and internal control systems. The purpose [...]

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• The Effects of Fiscal Policy on the Performance of Commercial Banks in Kenya

  S. Orodi

  African Journal of Commercial Studies (2022). Volume 1, Number 1, 2022 | pp 18 – 27.

  
  

  Abstract

  Fiscal policy refers to the use of government spending and tax policies to influence economic conditions. Fiscal policies have existed for a long time, with major debates between proponents of the Keynesian model and the monetary approach. Fiscal policy can either be contractionary, expansionary, or neutral. This study analyses the literature on the effect of the national budget on banks performance; effect of Taxation on bank performance; and the effect of public expenditure on performance of Banks in Kenya. The literature shows that government expenditure is a good fiscal policy measure in terms of the positive performance of commercial banks however, there is a need to consider the issue of corruption that negatively affects the expenditure controls that are crucial in an effective government approach in terms of the way the authorities ensure effective expenditure programs. Budget surplus and the positive impact on banks’ lending, no direct or clear argument shows the role of budgeting on commercial banks' performance. Taxes also play an important role in developing infrastructures that are crucial for the improved performance of firms. However, gaps exist in literature that needs to explored by further studies.

  Abstract
  Fiscal policy refers to the use of government spending and tax policies to influence economic conditions. Fiscal policies have existed for a long time, with major debates [...]

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• Effects of Computerized Accounting Systems on Financial Performance

  F. Kanyanga

  African Journal of Commercial Studies (2022). Volume 1, Number 1, 2022 | pp 28 – 35.

  
  

  Abstract

  Many organizations have wholeheartedly embraced computerized accounting systems in order to expand their corporate operations. In recent years, service businesses, particularly the banking industry, have experienced considerable development as a result of the use of computerized accounting systems. This study assesses the linkage between the financial performance of Kenyan businesses and the setting for computerized accounting. A few of the themes that have been taken into account are data controls, detective controls, preventive controls, and corrective controls. In contrast to clerks using manual procedures, the study found that a computerized accounting system (CAS) will not issue invoices incorrectly, hence eliminating errors. Business organizations are becoming more and more competitive in the market as a result of the implementation of CAS.

  Abstract
  Many organizations have wholeheartedly embraced computerized accounting systems in order to expand their corporate operations. In recent years, service businesses, particularly [...]

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• Considerations for bridging the Audit Expectation Gap: A Desk Review

  C. Kamau

  African Journal of Commercial Studies (ISSN: 2958-2326) (2022). Volume 1, Number 1, 2022 | pp 1 – 8

  
  

  Abstract

  The difference between what the general public and users of financial information believe auditors are responsible for and what auditors actually believe their obligations are is known as the expectation gap. This study aims to identify the nature of the audit expectation gap and suggest ways to close it. This will include a focus on how technology can be deployed to address similar concerns. The study proposed a set of criteria that might be utilized to close the expectation gap between user needs and expectations and audit expectations, including society knowledge, audit report length, audit independence, auditor efforts, and auditor abilities. The study came to the further conclusion that technology is crucial for closing both the performance and reasonableness gaps.

  Abstract
  The difference between what the general public and users of financial information believe auditors are responsible for and what auditors actually believe their obligations [...]

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