Papers by Josephat Cheboi
Traditional financial performance metrics have served well throughout the inclusion era, but they... more Traditional financial performance metrics have served well throughout the inclusion era, but they are no longer in sync with the skills and competitiveness that organizations are attempting to learn. This study examined the role of intellectual capital disclosure (ICD) in mediating the relationship between financial performance and firm value. The sample consists of 39 firms listed on the Nairobi Securities Exchange (NSE) in Kenya. They represent 67% of firms listed on NSE during the period (2010–2022). Data were extracted from individual companies’ audited annual reports. The study hypotheses were tested on a fixed and random effects model with the aid of the Stata student version. The results reveal that financial performance has a positive and significant effect on firm value. Furthermore, financial performance has a negative effect on ICD. Finally, ICD was found to have a mediating effect on the relationship between financial performance and firm value. The results confirm that ...
African Journal of Accounting and Financial Research
Purpose - This study seeks to investigate the association between CEO compensation and dividend p... more Purpose - This study seeks to investigate the association between CEO compensation and dividend payout policy among listed firms in Kenya. Design/methodology/approach - The study used a sample of 40 firms listed in the Nairobi Securities Exchange(NSE) over the period 2009-2019. Data was analysed using fixed and random effect models to test the research hypothesis. Findings - The empirical results show that CEO compensation is significantly and positively associated with dividend payout policy. Practical implications – The study indicates that CEO compensation can be used as a corporate governance mechanism to lower agency conflict. Therefore, the findings offer useful information for managers and regulators in evaluating the effect of CEO compensation on shareholder return. Research limitations/implications - Due to a lack of data on equity compensation, the study cannot conclusively determine the effect of CEO compensation on dividend payout policy. Originality/value - Unlike previ...
International Journal of Research and Innovation in Social Science
The inability of commercial banks to attain sustainable competitive advantage that can be defende... more The inability of commercial banks to attain sustainable competitive advantage that can be defended over time and that which competitors are unable to imitate have exposed banks to survival challenges in their operating environment. The main aim of the study was to investigate the mediating effect of employee engagement in the relationship between talent management practices and perceived sustainable competitive advantage of commercial banks in Nairobi County, Kenya. The study was buttressed by both resource based view and equity theory, positivist research philosophy and explanatory research design. A total of 3,098 employees from 329 branches of 42 commercial banks were targeted but only 354 were sampled given Yamane Formula. Questionnaires led to collection of primary data that was subjected to correlation, Pearson correlation and mediation analysis. There was a positive and significant effect of talent management practices on perceived sustainable competitive advantage as indicat...
Research Square (Research Square), Nov 6, 2023
In the new global economy, marked by technological uncertainty, financial performance and digital... more In the new global economy, marked by technological uncertainty, financial performance and digital activities have emerged as major concerns for shareholders and stakeholders. The study looks at the role of digital disclosure in the relationship between financial performance and firm value and whether purely local companies differ from cross-listed firms. To test the current study hypothesis, we apply linear regressions with panel data using the NSE, RSE, DSE, and USE data bases from a sample of 39 Kenya, 3 Rwanda, 17 Tanzania, and 14 Uganda firms respectively, over the period 2012-2022. The sample consisted of 51 purely local firms and 8 cross-listed firms. The study's findings indicate that there was a significant main effect between financial performance and firm value and also a significant main effect of digital disclosure on firm value. There was a significant interaction between going digital and financial performance and firm value. Lastly, there was a statistically significant difference between cross listed and purely local firm. Digital disclosure at lower levels enhances the relationship between financial performance and firm value. Generally, firms that are cross-listed provide more digital disclosure information compared to purely local listed companies. Firms practice conservative disclosure of digital activities since unsuccessful research activities may influence future performance and investors' confidence.
Journal of Business Management and Economic Research
Economic growth has remained an elusive issue in all economies in the world for a long period of ... more Economic growth has remained an elusive issue in all economies in the world for a long period of time with empirical studies about factors determining economic growth giving mixed results in different countries. Common Market of Eastern and Southern Africa (COMESA) was founded to foster and promoting joint development in all fields of economic activity and the joint adoption of macro‐economic policies and programmes to raise the standard of living of its peoples among its members states. Among others, emphasis was put on mobilizing domestic financial resources, mobilizing international resources, and promoting international trade as the engine of economic growth. However, it is not clear if these policies are a panacea to economic growth issue in COMESA countries and economic growth in these countries has remained a challenging issue in all economies. This study analyzed determinants of economic growth such as investor protection, credit to private sector, foreign exchange rate, and...
CERN European Organization for Nuclear Research - Zenodo, Jul 9, 2022
Credit to Sector private is known as financial resources given to the private sector, including l... more Credit to Sector private is known as financial resources given to the private sector, including loans and advances, non-equity securities purchases, trade credits, and other receivables, that establish a claim for recovery. In a variety of ways, financial institutions contribute significantly to people's socioeconomic development. The relationship between economic growth and credit to private sector has attracted attention among scholars in the recent past who have articulated empirical and theoretical studies on the relationship between economic growth and credit to private sector. Corruption has been rampant among COMESA counties. This article incorporated the moderation effect of corruption in the private sector access to credit and found that, tough positive, corruption does not influence credit to private sector. This can be alluded to the fact that, any investor not necessarily bribe to get credit for the business. To improve credit access, the cost of credit must be reduced, the interest rate cap removed, and the collateral registry must be expedited. The insufficiency of credit expansion had a negative impact on economic growth in countries in COMESA trading bloc.
African Journal of Education,Science and Technology, Jul 17, 2020
African Journal of Education,Science and Technology, Mar 19, 2020
African Journal of Education,Science and Technology, Jan 15, 2021
Journal of Business Management and Economic Research, 2021
Journal of Finance and Accounting, 2019
The debate on why firms underprice initial public offering (IPO) has never been laid to rest. Dri... more The debate on why firms underprice initial public offering (IPO) has never been laid to rest. Driven by this phenomenon of IPO underpricing, this paper sought to examine the determinants of IPO underpricing in developing countries, using African countries as a case study. Specifically, the study examined the effect of offer size and transaction volume on IPO underpricing. Panel data was collected for all firms that issued IPOs in Nairobi Securities Exchange, Egyptian Exchange and Johannesburg Stock Exchange for a period of fifteen years (1996 to 2011). The results showed that transaction volume had a negative and significant effect on IPO underpricing (β = -0.074; p 0.05). The study recommends that issuers should take special consideration on transaction volume to maximize the return to investors. Keywords: IPO Underpricing, Offer Size, Transaction Volume, Emerging Markets & Africa.
Firms continually make financing decisions in the course of business operations. One of these is ... more Firms continually make financing decisions in the course of business operations. One of these is the issuing of equity to the public through an Initial Public Offer (IPO). Despite the extensive research on the subject of IPOs, little attention has been given on the possible interaction between market conditions and the determinants of IPO underpricing. The general objective was to establish the determinants of IPO underpricing and the moderating effects of market conditions in African Securities Exchange Association (ASEA) member countries securities market. The specific objectives were to determine: the effect of transaction volume, offer size, investor oversubscription and listing delay on IPO underpricing and to establish the moderating effect of market conditions on the relationship between transaction volume, offer size, investor oversubscription and listing delay on the level of underpricing of IPOs. The study was based on market timing theory and the theories associated with ...
La arqueologia en Mexico se encuentra envuelta en complejas condiciones sociales. Para que logre ... more La arqueologia en Mexico se encuentra envuelta en complejas condiciones sociales. Para que logre cumplir plenamente con los objetivos academicos, sociales y su vocacion originaria, se deben realizar diagnosticos, discusiones amplias y principalmente acuerdos en torno a su trayectoria historica, estado actual, factores que inciden en ella, la relacion entre sus agentes y de estos con la sociedad en general. La propuesta que se discute radica en impulsar la definicion de criterios academicos comunes y de la agenda de labores futuras, ademas de regresar a las grandes preguntas academicas y sociales del quehacer de investigacion, proteccion y divulgacion del patrimonio.
Firm performance is one of the most important concepts of business strategy. Regardless of its im... more Firm performance is one of the most important concepts of business strategy. Regardless of its importance and ubiquitous use, there is no consensus about its precise definition and dimensionality. This paper examined the mediating effect firm performance on the relationship between firms’ ownership structure and its disclosure of CSR activities. Firm performance was proxied by return on assets. Ownership structure dimensions are managerial, institutional, foreign and ownership concentration. The paper employed Barron and Kenny mediation procedure. The results showed that firm performance mediated positively the relationship between managerial, institutional and ownership concentration and the corporate social responsibility disclosure at coefficient’s 0.165, 0.025 and 0.024, respectively. Further, there was negative (-0.001) mediation effect on the relation between foreign ownership and the corporate social responsibility disclosure. The form of mediation was partial mediation. The ...
Over the years, numerous cases of financial distress have been witnessed among listed firms in Na... more Over the years, numerous cases of financial distress have been witnessed among listed firms in Nairobi Securities Exchange. Trading activity affects corporate financial decisions by reducing cost of capital and facilitating access to more funds on the capital markets. Consequently, trading activity enhances firm performance due to the feedback effect. In view of the aforementioned, the primary aim of this study is to determine the role of trading activity on the relationship between financial leverage and the likelihood of financial distress among listed firms in Kenya. The analysis is based on a sample of 40 listed firms on the Nairobi Securities Exchange-Kenya for the period 20062015. The study found a positive and significant effect of financial leverage (β=0.824; p<0.05) on the likelihood of financial distress. Subsequently, when trading activity was introduced, the findings indicated that trading activity moderated the relationship between financial leverage and financial di...
The concept of financial development has been a topical issue of research among scholars and poli... more The concept of financial development has been a topical issue of research among scholars and policymakers in developing and developed countries in the world because it affects economic growth. However, there has been no consensus on the relationship between economic growth and financial development. Therefore this paper sought to determine the linkage between financial factors and financial development in 19 COMESA Countries. The specific objectives were to establish the effect of international remittances, financial access, inflation and foreign direct investment on financial development in COMESA Countries. The paper was guided by the financegrowth nexus theory. Data was collected from the IMF and World Bank database for analysis for the period. Fixed effect regression was used as established by use of the General Method of Moments. The results indicated that financial access, foreign direct investment and GDP had a significant effect on financial development in COMESA countries (...
Purpose: The purpose of the study was to determine the effect of risk analysis on performance of ... more Purpose: The purpose of the study was to determine the effect of risk analysis on performance of financial institutions. Methodology: The study used explanatory research design. The study used stratified random sampling to select respondents from target population comprising of managers of 46 commercial banks, 52 Micro Finance institutions (MFIs) and 200 SACCOs and a sample size of 239 respondents obtained. Data was collected using questionnaires. Descriptive statistics was presented, while inferential statistics was done using Pearson product moment correlation. Results: The risk analysis had positive relationship with the performance of financial institutions. Unique contribution to theory, practice and policy: considerations due to the complexity of the financial sector nowadays makes it necessary before any policy analysis should rely upon different indicators and mainly upon those that reflect the whole reality of the industry performance and explicitly consider and carefully i...
American Journal of Finance, 2017
Purpose: The purpose of the study was to determine the effects of ownership structure on the rela... more Purpose: The purpose of the study was to determine the effects of ownership structure on the relationship between risk management practices and performance of financial institutions.Methodology: The study used explanatory research design. The study used stratified random sampling to select respondents from target population comprising of managers of 46 commercial banks, 52 Micro Finance institutions (MFIs) and 200 SACCOs and a sample size of 239 respondents obtained. Data was collected using questionnaires. Descriptive statistics was presented, while inferential statistics was done using Pearson product moment correlation.Results: The findings indicated that the risk management practices (identification, analysis, evaluation and monitoring) influence the performance of financial institutions.Unique contribution to theory, practice and policy: The study has established the importance of ownership structure as a system of corporate governance that significantly moderates the relations...
Journal of Experimental and Theoretical Physics, 2020
Abstract We describe the experimental setup, as well as results and analysis of experiments on is... more Abstract We describe the experimental setup, as well as results and analysis of experiments on isothermal compression of stable hydrogen isotopes, viz., protium (H 2 ) and deuterium (D 2 ), in the initial (at P 0 = 0.1 MPa) solid state up to pressure of 550 GPa using facilities based on a magnetocumulative generator and an X-ray diffraction complex including a betatron and an X-ray image recording system. We consider the points obtained on the “cold” isentrope ( T 0 = 5–13 K) for protium and deuterium. The results are compared with those obtained using static and other dynamic facilities, as well as with the results of various calculations.
Firms continually make financing decisions in the course of business operations. One of these is ... more Firms continually make financing decisions in the course of business operations. One of these is the issuing of equity to the public through an Initial Public Offer (IPO). Despite the extensive research on the subject of IPOs, little attention has been given on the possible interaction between market conditions and the determinants of IPO underpricing. The general objective was to establish the determinants of IPO underpricing and the moderating effects of market conditions in African Securities Exchange Association (ASEA) member countries securities market. The specific objectives were to determine: the effect of transaction volume, offer size, investor oversubscription and listing delay on IPO underpricing and to establish the moderating effect of market conditions on the relationship between transaction volume, offer size, investor oversubscription and listing delay on the level of underpricing of IPOs. The study was based on market timing theory and the theories associated with information asymmetry namely the winner's curse theory, ex-ante uncertainty and signaling theory to explain what determines IPOs underpricing. The study used stratified random sampling to sample three countries, South Africa, Egypt and Kenya. The study used cross-sectional research design. Data was collected for all firms that issued IPOs in Nairobi Securities Exchange, Egyptian Exchange and Johannesburg Stock Exchange for a period of fifteen years (1996 to 2011). Data on IPOs offered per year per country was derived from the respective stock markets and financial information was collected from firm formation documents, prospectus and financial statements. The results showed that transaction volume, investor oversubscription and market condition had a positive and significant effect on IPO underpricing while listing delay had a negative and significant effect on IPO underpricing. Offer size was not significant. Furthermore, a hot market condition was found to have enhancing and significant interaction effects on transaction volume, offer size and investor oversubscription. There was no interaction on listing delay. This study contributes to theory by centering market condition on the empirical testing of market timing theory as well as the influence of share allotment on the reduction of the winners curse. The study recommends to issuers to take into consideration the market condition before issuing shares in an IPO as it enhances the impact of transaction volume, offer size and investor oversubscription on IPO underpricing. Further to this, the study recommends to policy more stringent scrutiny of offers made during a hot market to protect investors from possible impropriety occasioned by their enthusiasm as evidenced by investor oversubscription. The study suggests future research to investigate the allotment methods used in other developing markets in relation to the winners curse. The study further recommends inquiry on the impact of cold market condition on the determinants of IPO underpricing and an investigation on the events surrounding the transition from hot to cold markets to better understand and utilize the prediction capability of the noticeable indicators. v TABLE OF CONTENTS
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Papers by Josephat Cheboi