Search results

1 – 10 of 27
Per page
102050
Citations:
Loading...
Access Restricted. View access options
Article
Publication date: 8 May 2017

David M. Mathuva, Josephat K. Mboya and James B. McFie

The purpose of this paper is to utilize legitimacy theory to test the association between the governance of credit unions and their social and environmental disclosure in a…

1008

Abstract

Purpose

The purpose of this paper is to utilize legitimacy theory to test the association between the governance of credit unions and their social and environmental disclosure in a developing country, Kenya. A further examination of institutional pressures due to regulatory forces on the association between co-operative governance and credit union social and environmental disclosure (CSED) is performed.

Design/methodology/approach

Using a sample comprising of 1,272 credit union observations over the period 2008-2013, panel OLS regressions are performed to establish the association between co-operative governance and CSED. A comparison of the pre- and post-regulatory influences on co-operative governance and CSED is also performed.

Findings

The findings, which are in support of both legitimacy and institutional theories, depict a positive and significant association between co-operative governance and CSED. The significance of the co-operative governance score improves from the pre-regulation period to the post-regulation period. Other significant variables influencing the volume of CSED by credit unions in Kenya include credit union size and financial performance as measured by the return on assets.

Research limitations/implications

The study examines CSED practices in a developing country and in organizations in a single sector. Further, CSED is measured using a self-constructed index with data being obtained from audited annual reports only.

Practical implications

The study highlights the need to develop CSED guidelines tailored for credit unions, and a focus on co-operative governance as a way of improving disclosure practices.

Originality/value

The study utilizes a sector-specific governance variable and a CSED index to examine the association between the two variables by credit unions in a developing country. The study also attempts to investigate the role of regulation on the association between co-operative governance and the volume of CSED.

Details

Journal of Applied Accounting Research, vol. 18 no. 2
Type: Research Article
ISSN: 0967-5426

Keywords

Access Restricted. View access options
Article
Publication date: 13 February 2025

Jane Ngaruiya, David M. Mathuva and Pat Obi

This study aims to examine whether interest rate regulations affect stock returns in a developing market.

6

Abstract

Purpose

This study aims to examine whether interest rate regulations affect stock returns in a developing market.

Design/methodology/approach

This study analyses the impact of interest rate regulation on Kenyan banks using the event methodology and a difference-in-difference approach. It examines the market reaction and bank valuation effects from 2004 to 2022, focusing on the rate cap’s introduction in August 2016 and its repeal in November 2019. Cumulative abnormal returns are calculated for four sub-periods within a five-day window around these events using data from 11 banks and 300 days.

Findings

Contrary to expectations, this study finds that the announcement of interest rate controls results in negative and statistically significant cumulative abnormal returns. However, the difference-in-differences analysis shows that these regulatory changes had an insignificant long-term impact on market valuations beyond the event period.

Research limitations/implications

This study shows how interest rate regulations affect stock returns, guiding investors in managing wealth and market efficiency in developing economies.

Originality/value

This study investigates market reactions and bank valuations in response to interest rate regulations within a developing economy. It focuses on the introduction of rate caps, their subsequent repeals and a shift to risk-based lending. Using a combination of event study methodology and difference-in-difference analysis offers a novel methodological contribution compared to prior research.

Details

Journal of Financial Regulation and Compliance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1358-1988

Keywords

Access Restricted. View access options
Article
Publication date: 14 May 2018

David Mutua Mathuva and H. Gin Chong

This paper aims to utilize institutional theory to examine the impact of the 2008-2010 regulatory reforms on compliance with mandatory disclosures by savings and credit…

502

Abstract

Purpose

This paper aims to utilize institutional theory to examine the impact of the 2008-2010 regulatory reforms on compliance with mandatory disclosures by savings and credit co-operatives (SACCOs) in Kenya.

Design/methodology/approach

Two-stage least squares panel regression approach is utilized to analyse data covering 1,272 firm-year observations for 212 SACCOs over a six-year period, 2008-2013. An analysis of the pre- and post-regulation impacts on compliance with mandatory disclosure requirements is also performed.

Findings

The results, which are in support of the institutional theory, reveal that licensed SACCOs engage in higher compliance with mandatory disclosures, and this improves from the pre- to the post-regulation period. The results show that SACCOs under inquiry engage in lower compliance with mandatory disclosure requirements, especially in the post-regulation period. The findings also reveal a significant and positive association between SACCO size, co-operative governance and compliance with mandatory disclosure requirements.

Research limitations/implications

The study focuses on transition-level SACCOs in a single country. An extension into other jurisdictions with nascent, transitional and mature SACCOs would provide greater insights into the impact of disclosure regulation. Further, the study uses a self-constructed disclosure checklist which is subject to coding errors and biases.

Practical implications

The findings highlight the need for SACCO regulators and accounting professional body to devise incentives to improve the level of compliance with required disclosures.

Originality/value

The study contributes to the dearth of evidence on the efficacy of the introduction of mandatory disclosure requirements in a developing country where compliance is problematic because of difficulties with enforcement.

Details

Journal of Financial Regulation and Compliance, vol. 26 no. 2
Type: Research Article
ISSN: 1358-1988

Keywords

Access Restricted. View access options
Article
Publication date: 11 August 2021

Geoffrey Injeni, Musa Mangena, David Mathuva and Robert Mudida

This paper aims to examine the factors influencing the level of disclosures of sustainability (SR) and integrated report (IR) information in a developing country context, with…

953

Abstract

Purpose

This paper aims to examine the factors influencing the level of disclosures of sustainability (SR) and integrated report (IR) information in a developing country context, with particular reference to Kenya.

Design/methodology/approach

The study uses a panel data set of 419 firm-year observations of listed companies in Kenya covering the period 2010 through 2018. Data are collected from the annual reports and analysed using a generalized estimations equation model.

Findings

The results reveal that there is momentum towards newer reporting frameworks in Kenya with substantial IR and SR disclosures in their annual reports. The results also show that level of SR and IR disclosures is influenced by both agency-related factors (board gender diversity, audit committee independence, block ownership and the presence of foreign ownership). Additionally, institutional-related factors (regulatory pressure and promotional efforts of regulatory and professional bodies [reporting excellence awards]) influence the disclosures.

Practical implications

The results highlight that initiatives such as those led by the regulatory and professional bodies in Kenya are effective in motivating companies to enhance disclosures. Thus, regulators and professional bodies might need to continue and even intensify their efforts. These results have implications for further research as they show that SR and IR disclosures are influenced by similar factors.

Social implications

The study has the potential to contribute to the ongoing initiatives and discussions on the adoption of IR by firms in Africa as spearheaded by the African Integrated Reporting Council.

Originality/value

To the best of the knowledge, the study is, perhaps, the first to examine both SR and IR disclosures at the same study allowing comparison of the extent and drivers of the two disclosures. Moreover, examining the institutional-related factors in a single country has not been done in prior literature, and so this is an innovation.

Details

Journal of Financial Reporting and Accounting, vol. 20 no. 5
Type: Research Article
ISSN: 1985-2517

Keywords

Access Restricted. View access options
Article
Publication date: 31 March 2020

David Mathuva, Samuel Kiragu and Dulacha Barako

This study aims to examine the extent and drivers of anti-money laundering (AML) disclosures in the audited annual reports of regional listed banks in Kenya.

982

Abstract

Purpose

This study aims to examine the extent and drivers of anti-money laundering (AML) disclosures in the audited annual reports of regional listed banks in Kenya.

Design/methodology/approach

Using the Financial Action Task Force recommendations and other guidelines, the authors develop an AML disclosure index that is used to score the extent of AML disclosures by banks. A sample of 15 listed regional banks in Kenya over the period of 2007-2017 is used. Using this sample, the authors performed fixed-effects regressions to identify the significant determinants of AML disclosures.

Findings

The study establishes a low level of AML disclosures in the audited annual reports of sampled banks. The extent to which the AML disclosures improved across three distinct regulatory regimes over the period of 2007-2017 is reported. The authors find that the AML disclosures are largely driven by corporate governance (board size and audit committee size) and the ratio of diaspora remittances to GDP.

Practical implications

Owing to the global nature of money laundering activities, the study suggests that the Central Bank of Kenya needs to internationalize AML regulations and follow internationally accepted best practices in AML to respond to emerging trends in money laundering and related crimes.

Originality/value

To the best knowledge of the researchers, this is perhaps the first study to examine the drivers of AML disclosures by banks in a developing economy in the East and Southern African region. Given the global nature of money laundering, the study makes an important and original contribution to the body of knowledge with potential for replication in other jurisdictions. The findings will also form a basis for developing an AML reporting or disclosure framework.

Details

Journal of Money Laundering Control, vol. 23 no. 3
Type: Research Article
ISSN: 1368-5201

Keywords

Access Restricted. View access options
Article
Publication date: 8 May 2018

David Mutua Mathuva

In Kenya, an award for reporting excellence is presented annually to the entities in the public and private sector. The purpose of this paper is to examine the characteristics of…

386

Abstract

Purpose

In Kenya, an award for reporting excellence is presented annually to the entities in the public and private sector. The purpose of this paper is to examine the characteristics of savings and credit cooperatives (SACCOs) that apply for the annual reporting excellence award in Kenya.

Design/methodology/approach

The study employs correlation and probit regression analyses to establish the factors which explain the decision by SACCOs to participate in the Financial Reporting (FIRE) excellence award. The study utilizes data consisting of 1,272 firm-year observations for 212 SACCOs, over the period 2008-2013.

Findings

Consistent with institutional and legitimacy theories, the results demonstrate that structural and governance variables are significant and positively associated with the decision to participate in the annual FIRE awards by SACCOs in Kenya. Similarly, larger SACCOs and those that have adopted best cooperative governance practices are more likely to participate in the annual FIRE awards. The results also reveal that SACCOs audited by the Big 4 audit firms are more likely to participate in the annual FIRE awards.

Research limitations/implications

The study focuses on the factors explaining the decision to participate in the annual reporting excellence awards by organizations in a specific sector. Further studies can adopt a multi-sectoral approach to investigate the same phenomenon.

Practical implications

The findings highlight the importance of cooperative governance and resources in explaining why SACCOs choose to participate in the FIRE awards.

Originality/value

The study adds onto the dearth of literature on the aspect under focus. Globally, very few studies have examined the drivers of the decision to participate in reporting excellence awards by organizations.

Details

Journal of Accounting in Emerging Economies, vol. 8 no. 2
Type: Research Article
ISSN: 2042-1168

Keywords

Access Restricted. View access options
Book part
Publication date: 22 October 2019

David Mutua Mathuva, Mumbi Maria Wachira and Geoffrey Ikavulu Injeni

In this chapter, we examine whether corporate environmental reporting (CER) by listed companies in Kenya improves stock liquidity. The investigation is motivated by the growing…

Abstract

Purpose

In this chapter, we examine whether corporate environmental reporting (CER) by listed companies in Kenya improves stock liquidity. The investigation is motivated by the growing interest by corporations, investors, and regulators toward embracing ecological protection with a view to creating sustainable societies for the future.

Design/Methodology/Approach

Using a panel dataset comprising of 244 firm-year observations from 50 listed firms in Kenya over a five-year period (2011 to 2015), we perform fixed-effects regressions to discern whether CER is associated with stock liquidity. To examine this, we utilize bid-ask (as well as quoted) spreads measured over month −9 to month +3 relative to a firm’s year end.

Findings

Despite the seemingly low levels of CER across firms in the sample (average: 32.6%), the results depict that CER is positively associated with stock liquidity. The results are robust even when we consider changes in bid-ask spreads and CER together with the other variables. The same results emerge when we study the association between bid-ask spreads and each CER item at a time over the period 2011–2015.

Practical Implications

The results imply that listed companies in Kenya that engage in higher CER seem to be more attractive to investors. The higher CER seems to improve the information environment, hence reducing information asymmetry and therefore attracting investors. The results provide some evidence of positive economic consequences of engaging in additional disclosure over and above the traditional corporate financial reporting.

Originality/Value

The study adds onto the dearth of literature on the economic consequences of embracing additional disclosure frameworks in developing countries where the adoption of alternative reporting frameworks is at infancy.

Details

Environmental Reporting and Management in Africa
Type: Book
ISBN: 978-1-78973-373-0

Keywords

Access Restricted. View access options
Article
Publication date: 17 October 2016

David Mutua Mathuva, Elizabeth Wangui Muthuma and Josephat Mboya Kiweu

This paper aims to investigate the impact of name change, if any on the financial performance of deposit-taking savings and credit co-operatives (SACCOs) in a developing country…

853

Abstract

Purpose

This paper aims to investigate the impact of name change, if any on the financial performance of deposit-taking savings and credit co-operatives (SACCOs) in a developing country characterized by a vibrant SACCO sector. Sparse studies exist on the impact of name changes on revenue-cost performance in mutual financial institutions such as SACCOs.

Design/methodology/approach

The study uses a standard event methodology over a six-year period (2008-2013) to investigate the impact of name change on the return on assets (ROA) and operating profit margin (OPM). The study then uses a panel regression method to study the impact of name change on ROA and OPM for a sample of 212 deposit-taking SACCOs over the period 2008-2013.

Findings

The results, which are robust for a variety of controls, provide evidence in support of a consistent positive association between name change and subsequent financial performance of deposit-taking SACCOs in Kenya. The positive impact of name change seems to be experienced about four years after the name change. The results reveal muted influence of regulation on name change and financial performance of SACCOs in Kenya.

Research limitations/implications

The study focuses solely on deposit-taking SACCOs in a developing country context over a six-year period only. Extending the time period and including a sample of control SACCOs operating purely back-office service activities would add power to the analyses.

Practical implications

The current study illustrates the contribution of name change on the financial performance of SACCOs in a developing country characterized by a vibrant SACCO sector. Overall, the results show that name change announcements signal an improvement in SACCOs’ future prospects.

Originality/value

This study provides empirical evidence on the contribution of name change announcements on the financial performance of SACCOs in a developing country context. The study adds to the sparse literature on the impact of name change on the financial performance of mutual financial institutions that are not listed on the securities exchange.

Details

Management Research Review, vol. 39 no. 10
Type: Research Article
ISSN: 2040-8269

Keywords

Available. Content available
Article
Publication date: 15 February 2023

Musa Mangena, M. Karim Sorour and David Mutua Mathuva

635

Abstract

Details

Corporate Governance: The International Journal of Business in Society, vol. 23 no. 2
Type: Research Article
ISSN: 1472-0701

Access Restricted. View access options
Article
Publication date: 25 December 2024

Nancy Njiraini, Angela Ndunge and David Mathuva

Despite social ministries and enterprises by Catholic sisters being established under stable foundation and for several years, there have been cases of failures or stalled…

32

Abstract

Purpose

Despite social ministries and enterprises by Catholic sisters being established under stable foundation and for several years, there have been cases of failures or stalled projects. The purpose of this study was to examine whether this phenomenon is simply failure or a case of mission drift.

Design/methodology/approach

To achieve this objective, primary data drawn from four African countries, 59 congregations and 172 respondents were subjected to a mixed methods approach to find out what explained this failure. The 172 respondents were drawn from a set of congregational leaders.

Findings

The findings revealed some level of inactive projects largely in farming and agricultural production. The authors found that the identified 19 causes of social enterprise failures emanated both from internal, commercially driven to external, pro-social reasons.

Research limitations/implications

The findings of the study revealed the need to strategically review the utilisation of the resources at the disposal of the congregations. Capacity building, proper succession planning and setting the right tone at the top were critical imperatives congregational leaders need to pay attention to minimise project failures and mission drift. Finally, the study called for innovative funding models together with a change in mindset about the sustainability of the social enterprises.

Originality/value

To the best of the authors’ knowledge, this study is perhaps the first to focus on social enterprises run by Catholic sisters with a view towards establishing why they tend to fail.

Details

Social Enterprise Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-8614

Keywords

1 – 10 of 27
Per page
102050