Vol 3 Issue 2 October 2015-March 2016

Abstract: The research paper aims to investigate the significant macro-economic factors affecting the stock Prices of KSE-100 Index. Time series Data for Stock Prices on monthly basis for the period ranging January, 2005 to March, 2014 has been taken from KSE-100 Index. The study used time series data analysis. Sample comprises of 30 companies from KSE-100 Index for analysis. Macro-economic variables selected in the study are Inflation (CPI), Producer Price Index (PPI), Gold price, Silver price, Exports and Imports. Augmented Dickey Fuller test has been used to check stationarity of data, Johansen’s Cointegration test and Ganger’s causality tests has been used to measure the causal relationship between stock prices and selected macro-economic variables. The results suggested that stock prices are cointegrated with macro-economic variables in long term. Furthermore, macro-economic variables Inflation, PPI, Gold price and Exports have long term causal relationship with stock prices in Pakistan.

Keywords:  Stock prices, PPI, Gold price, causal relationship, Silver price.

Title: Causal Relationship between Macroeconomic Factors and Stock Prices in Pakistan

Author: Muhammad Ahmad Shahid, Fareena Farheen Kamran

International Journal of Management and Commerce Innovations

ISSN 2348-7585 (Online)

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Abstract: India is an over populated country. In 2015 its current population is 1.28 billion. The resources of India are insufficient to fulfill the needs and wants of the citizens of India. This paper discuss about the unequal distribution of income and wealth between the rich and poor people in India. India is shining for only selected few. The impressive economic growth of our country has bought smile on the face of the rich and powerful even as the rest suffer in distress and drudgery.

 “In India, the distribution of assets is extremely unequal, with the top 5% of the households processing 38% of the total assets and bottom 60% of household owing a mere 13%”, according to the human development report released by planning commission. In the year 2011-12 in India almost 21.92% of people are laying below poverty line.

In this paper, Gini Coefficient is taken as a indicator of inequality between rich and poor. If the value of Gini Coefficient is higher, the income gap is also higher. It is shown in this paper that the value of Gini Coefficient is increased day by day.

The income distribution in rural and urban areas and also taken as the measure of inequality between rich and poor.

Scarcity of water, changes in climatic condition due to global warming causes food insecurity in a over populated country like India. Ultimately this food insecurity lead to the increase in price level i.e. inflation. This paper is also discussed about the scarce resources in relation to our needs.

Keywords: Gini Coefficient, Poverty line, and Scarcity.

Title: Poverty, Income and Wealth Distribution: Are our Resources Scarce in Relation to our Needs?

Author: Barnali Ghosh

International Journal of Management and Commerce Innovations

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Abstract: This study assessed the factors affecting performance of e-procurement system in the energy sector. The specific objectives were; establish the influence of user training and uptake on performance of e-procurement at KenGen, examine the influence of top management on performance of e-procurement at KenGen, determine the influence of stakeholder interest on performance of e-procurement at KenGen; establish the buyer/supplier integration on performance of e-procurement. The study used descriptive case study design and it adopted both qualitative and quantitative approaches. Data was analysed using Statistical Package for Social Sciences (SPSS) version 22. The findings of the study revealed that user training and uptake, top management, buyer-supplier integration and stakeholder interest had 69.8% significance in performance of e-procurement system at KenGen. However, user training and uptake was noted to have the least significance on performance of e-procurement at KenGen while stakeholder interest had the strongest significance. The study recommended that the management should formulate favorable policies, provide enough funds and equipment to improve e-procurement, involve all the stakeholders before, during and after implementation of e-procurement system. Further, the organization should be open and give complete information when dealing with suppliers and involve its employees and suppliers and train them regularly.

Keywords: Performance of E-procurement system, user training and uptake, top management support, buyer-supplier integration and stakeholder interest.

Title: Factors Affecting Performance of E-Procurement System in the Energy Sector in Kenya; A Case Study of Kengen

Author: Karani Anthony Muriithi, Dr. Esther Waiganjo, Caren Chepngetich

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Abstract: The aim of this study was explore the factors influencing the use of mobile banking in Kenya based on Mkesho in Bungoma County. The study adopted a descriptive research design. The population of study consisted of all the customers of Equity bank in Bungoma County. The sample size of this study was 50 individuals determined using simple sampling. This represents 10% of the total number of respondents’ targeted. Primary data was collected using semi structured questionnaires containing closed questions. The quantitative data was analyzed using descriptive statistics. In addition the study used logistic model to uncover predictive relationships between a set of independent variables and the dependable variable. From the research results, risk was found to be negatively affecting usage of mobile banking. Amongst the customer’s greatest risk in using mobile banking was security or privacy risk. Financial cost was also found to be negatively influencing usage of mobile banking which was related to short-time debt.

Keywords: risk, financial cost, usage.

Title: Factors Influencing the Use of Mobile Banking in Kenya, the Case of M-KESHO in BUNGOMA County

Author: EDWIN OPILI, DR. MUTURI Willy

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Abstract: Globalization makes the world small and interdependent. In order to survive and remain profitable in the competitive environment, it becomes necessary for companies, regardless of their size, to be aggressive in their search and development of strategies that provide competitive advantage as they step up defensive strategies to improve their performance. Despite numerous contributions of SMEs in the growth economy, findings on the strategy adopted in creating competitive advantage pointed that it is not yet exhaustive given the turbulent business environment that they operate in. This study sought to determine relationship between competitive strategies employed by small medium enterprises and their organization performance with a focus to SMEs in Nairobi County. The study was guided by the following specific objectives, that is, to determine effectiveness of cost leadership strategy on performance of small medium enterprises within Nairobi County, to determine the effectiveness of product differentiation strategy on performance of small medium enterprises within Nairobi County, to determine effectiveness of product diversification strategy on performance of small medium enterprises within Nairobi County and to determine the effectiveness of market focus strategy on performance of small medium enterprises within Nairobi County. The study employed descriptive research design. The study relied mostly on primary data sources where questionnaire were used as a source of the data. The target population of this study was 574 SMEs operating within Nairobi County. The study employed a stratified random sampling technique in coming up with a sample size of 116 respondents from a total population of 574. The study generated both qualitative and quantitative data where quantitative data were coded and entered into Statistical Packages for Social Scientists (SPSS Version 17.0) and analyzed using descriptive statistics. Quantitative data was presented in tables and graphs while the explanation to the same was presented in prose. Based on the study finding, the study concluded that most of the organizations attempt to minimize the costs and pass the savings on customers. Product that is valued and perceived by customers as unique, highly skilled and creative product development personnel and product that serves unique purpose are some of the aspects that organizations considers most. Organization attempt to produce new products, modify existing products or add new products. Organizations match market characteristics and company’s competitive advantages. Organizations divide the market into smaller sections that can reach at low cost and that are cost sensitive. There is need for the firms to employ various strategies differentiation and relationship strategies to boost growth and sales. The study recommended that as small and medium sized business had immense opportunities that are not utilized should enlarge their size in terms of market portion and distribution of product where there are no existing business providing the same product. SMEs should seek to adopt more innovative product and services differentiations that make it a stand alone in the market.

Keywords: Differentiation, Market, Performance, Product and Strategy.

Title: Relationship between Competitive Strategy and Performance of Small and Medium Enterprises in Nairobi County

Author: Charity Wangui Maina, DR. MUTURI Willy

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Abstract: The purpose of this study was to investigate the influence of strategic sourcing on organizational performance of state corporations in Kenya. The specific objectives were to: establish the role of supplier development, the role of contract management, the role of supplier relationship management and role of early supplier involvement on organizational performance of Kenya Power: A descriptive case study design was used. Statistical analysis was carried out using SPSS. The study revealed that supplier relationship management, Early Supplier involvement and  contract management   followed by supplier development  have a  great influence role in the performance of  Kenya power thus this study recommends that Kenya power  to partner with suppliers who supply strategic items, involve early suppliers of strategic item , have clear Key performance indicators to actively monitor performance of suppliers, and  have a supplier development program that’s it’s in line with organizational objectives.

Keywords: influence of strategic sourcing, organizational performance, state corporations in Kenya, Kenya Power, suppliers, strategic items, SPSS.

Title: Influence of Strategic Sourcing on Organizational Performance of State Corporation in Kenya; a Case of Kenya Power

Author: Carren Chepng’etich, Dr. Esther Waiganjo, Antony Karani

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Abstract: The study presented in this paper analyzes the effect of internal environment in Kano State; a sample size of 85 will be selected and used for the purpose of this study. This was arrived at using Slovene’s formula used to determine the minimum sample size. The finding will show the length at which internal environment factors has significant effect on the performance of small and medium scale enterprises in Kano metropolis.

Keywords: SMEs, Performance, internal environment and internal environmental factors.

Title: The Effect of Internal Environment on the Performance of Small and Medium Scale Enterprise in Kano Metropolis

Author: Abolaji Oluwadare, Iyanuoluwa Oni

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Abstract:  Inventory is a vital part of current assets mainly in manufacturing concerns. Huge funds are committed to inventories as to ensure smooth flow of production and to meet consumer demand. However, maintaining inventory also involves holding or carrying costs along with opportunity cost. Inventory management, therefore, plays a crucial role in balancing the benefits and disadvantages associated with holding inventory. Efficient and effective inventory management goes a long way in successful running and survival of a business firm. Given the milestone contribution of the Cement manufacturing firms to the economy of Kenya, this research is necessary to evaluate the effects of inventory management on the profitability of the Cement manufacturing firms in Kenya. A cross sectional data from 1999 to 2014 was gathered for the analysis of the annual reports for the three sampled firms listed at Nairobi Securities Exchange (NSE). The ordinary least squares (OLS) stated in the form of a multiple regression model was applied in the data analysis to establish the relationship between inventory management and firm’s profitability. The variables used include inventory turnover, inventory conversion period, Inventory levels, storage cost, size of firm, gross profit margin, Return on assets and growth of firm. The results provide a negative relationship between inventory turnover, inventory conversion period and storage cost with profitability of the company. In addition, inventory level was found to be directly related to firm’s size and storage cost. The study recommends that the Cement-manufacturing firms in Kenya should strive to ensure that the right stock is kept in their warehouses to hedge against excessive holding cost and stock-outs.

Keywords:  Inventory Management on Profitability of Cement Manufacturing Companies, Inventory Conversion Period and Storage Cost With Profitability.

Title: The Effect of Inventory Management on Profitability of Cement Manufacturing Companies in Kenya: A Case Study of Listed Cement Manufacturing Companies in Kenya

Author: Edwin Sitienei, Florence Memba

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ISSN 2348-7585 (Online)

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Abstract: Small and Micro Enterprises (SMEs) play an important economic role in many countries. In Kenya, for example the SME sector contributed over 50% of new jobs created in 2005. Despite the big role SMEs play in the economy past statistics indicate that three out of five businesses fail within the first few months of operation (Kenya National Bureau of Statistics, 2007). Causes to the failure include limited market access, limited access to information, finances and technology and unfavorable policy and regulatory environment among others (ROK, 2005).  The Council of the Institute of Certified Public Accountants of Kenya (ICPAK) and the Council of the National Board of Accountants and Auditors of Tanzania approved the use of IFRS for SMEs in 2009 yet majority of SMEs in Kenya have not implemented IFRS for SMEs. The study sought to carry out an investigation on the factors affecting the implementation of IFRS for SMEs in Kenya. Implementation of IFRS for SMEs is very crucial since SMEs contribute greatly to the economic development of a country. The research was carried out at Thika town Kenya since the town is an industrialized. A sample of 135 finance managers was done since they were directly and indirectly involved in the running of business of the firms. A questionnaire and interview guide were used to collect the data. A response rate of 89% was obtained. The study revealed that there is a positive relationship between the implementation of IFRS for SMEs and education and training skills of finance managers, availability of finance and awareness of IFRS for SMEs of magnitude0.217, 0.064 and 0.202 respectively. The positive relationship indicates that there is a correlation between the factors and the implementation of IFRS for SMEs in Kenya. This infers that education of finance managers has the highest effect on the implementation of IFRS for SMEs, followed by availability of finance and then awareness of IFRS for SMEs. The study found out that education and training affected the implementation of IFRS for SMEs and that majority of the respondents had not attended any form of training on accounting it therefore recommends that training policies should be introduced to the SMEs finance managers.

Keywords: implementation of IFRS for SMEs, Education of finance managers, availability of finance and awareness of IFRS for SMEs. 

Title: Factors Affecting the Implementation of International Financial Reporting Standards for Small and Medium Enterprises in Kenya:  A Case Study of Small and Medium Enterprises in Thika Town

Author: CHRISTOPHER NJOROGE CHEGE, DR WILLY MUTURI

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Abstract: Workforce diversity is a multi-faceted phenomenon that will continue to evolve as the world becomes a global marketplace. No doubt many believe workforce diversity is fundamental for employee performance. This study sought to find out the effect of workforce diversity on employee work performance, using the County Government of Mombasa. In the context of this study the term workforce diversity was defined as the similarities and differences among employees in terms of ethnic background, gender and education. These similarities and differences formed the independent variables of this study. Literature review was done and an attempt was made to link the various published studies with this study with a view to discovering how each variable impacted on employee work performance at the CGM. The study described the target population which comprised of employees of the CGM working in the County Assembly. Judgmental sampling technique was used to get respondents within the County Assembly. The researcher targeted 30 out of 59 employees of the County Assembly of the CGM. Data was collected through self-administered questionnaires and was descriptively analyzed. Data collected through the questionnaire was analyzed statistically by using the Software Package for Social Science (SPSS). It was then summarized using tables. The summarized responses were used to examine the effect of each variable on employee work performance. Correlation Coefficient analysis showed a significant level of association between performance and the tested variables of diversity. Interviews and observations were also used to gather information to aid the study. It became clear from the data analysis that workforce diversity is a well-accepted phenomenon at the CGM and that there was no discrimination detected resulting from ethnic, gender or educational background.  The workforce was harmonious but without expectations of high or low performance based on an employee`s demographic background. An employee`s ethnic, gender and educational background did not have any contributory effect on performance. The objectives of the study were fulfilled with negative results for all the tested variables. It became evident that workforce diversity does not influence employee work performance at the County Government of Mombasa. This study could be a guideline for future studies. While diversity is an acceptable phenomenon, its variables of ethnicity, gender and educational background do not portray significant effect on performance, positively nor negatively. It is therefore important for the County to realize the need to capitalize on these demographic categories in order to stay ahead of other Counties. In order to fully understand the scenario at the CGM, further studies need to be conducted in order to unearth the challenges of employee work performance with a view to discovering what needs to be done to enable the County increase efficiency and make better, its service delivery to the residents.

Keywords: Workplace Diversity, Ethnicity, Gender, Education and Work Performance.

Title: Effect of Workforce Diversity on Employee Work Performance: A Study of the County Government of Mombasa

Author: ABDALLAH S. MWATUMWA, Dr. William Kingi, Dr. Hussein Mohamed,Dr. Mary Ibua, Dr. Karim Omido

International Journal of Management and Commerce Innovations

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Abstract: The study aimed at finding out: (1) the effect of tax rate and dividend policy on the stock price, (2) the effect of tax rate on the stock price, (3) the effect of dividend policy on the stock price, and (4) the effect of tax rate on the dividend policy. (A case study at PT. Telekomunikasi Indonesia, Tbk. during the period of 2001-2014). This study utilized a causal quantitative design involving fourteen (14) samples, such as an annual financial report of PT. Telekomunikasi Indonesia, Tbk during the period of 2001-2014. The samples were selected by using a purposive sampling technique. The data were analyzed by using path analysis in order to measure the extent of the contribution or the effect of independent variables on the dependent variable, both direct and indirect contribution, in relation to the other independent variables. The data were obtained from the secondary source, that is, the website of www.telkom.co.id.

The results indicated that (1) the tax rate and dividend policy had an effect on the stock price for about 76,8%, (2) the tax rate had a positive effect on the stock price for about 32,6%, (3) the dividend policy had a positive effect on the stock price for about 17,5%, and (4) the tax rate had a positive effect on the dividend policy for about 31,3%.

Keywords: tax rate, dividend policy, and stock price.

Title: Influence of Tax Rate and Dividend Policy on Stock Price

Author: Dadang Prasetyo Jatmiko

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Abstract: Adam Smith (1776) is generally ignored as an international trade theorist in textbooks and surveys because of the common belief that he only confirmed the rule of absolute advantages to explain structure of foreign trade. On the other hand, many textbooks and surveys on growth theories simply overlook Smith's significant contributions to economic growth theory. Smith’s insights can still be relevant today and what can be learnt from the mistreatment Smith has suffered in the historiography of international trade theory.

However, his vent-for-surplus approach may be interpreted as a pioneering study which stresses the importance of economies-of-scale in explaining the structure of foreign trade. Furthermore, in Smith, both learning by doing and economies-of-scale are crucial to explain long-run economic growth.

This paper addresses to the undeniable influence of Smith's concepts on the promotion of quality labour that increases the productivity of the nation and causes an increase in the international trade of the nation leading to the integration of economies.

Keywords: Doxography, International Trade, Constant Returns to Scale (CRS).

Title: Adam Smith on Foreign Trade: The Underlying Theory and Doxography

Author: Prof. K Vijayaraj, Naveen Rai

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Abstract: Developing countries across the world require the supply of health care that is varied, widely available, easy to access, reasonably priced and also of high quality. This paper provides an overview of health care in Cambodia with focus on health care financing and health insurance. The system of delivery of health care services is described followed by an overview of the types of health centers in Cambodia. Furthermore, health care financing is described, providing details of the stakeholders who pay for health care (government and private) and the mechanisms available for financing. The current status of health insurance in Cambodia is also described. The author conducted a study to assess the awareness and interest of a sample population (50 participants) of Cambodian citizens with regard to health insurance programs/plans. The findings from the study highlighted the influence of cost in choosing health care facilities and deferring treatment. Furthermore, the findings drew attention to the fact that out-of-pocket (OOP) expenditure was significant in Cambodia in spite of government subsidies. Moreover, participants had limited awareness of health care programs and insurance schemes and hence were poorly covered under these. However, participants were willing to participate in insurance schemes if they were expected to pay only a partial component of the insurance fees. The author concludes the paper with a recommendation to widen the reach of health insurance to include the majority of the Cambodian population in order to improve overall health care.

Keywords: Cambodia, health care, service delivery, financing, out-of-pocket, insurance.

Title: Insurance as a Means to Improve Overall Healthcare in Cambodia

Author: Rajesh Purohit, Prof. Rajesh Mehrotra

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Abstract: This research analyses the influence of agency cost—using percentage of stock ownership by various clusters as proxy measurements, namely institutional ownership, insider ownership, and ownership dispersion (stock ownership by the public)—market risk (beta), and investment opportunities on dividend policy. The population in this research is companies listed on the Indonesia Stock Exchange during a 2005–2008 observation period, using purposive sampling as a sampling technique. This research was designed as descriptive research and verification of this research was carried out using secondary data. Data was analysed by using data panel regression analysis and the statistical hypothesis was tested with the F-test and t-test. The result of the research and testing of the hypothesis indicates that variables such as institutional ownership, insider ownership, and ownership dispersion (public ownership), plus market risk, and investment opportunities significantly influence dividend policy. Partial institutional ownership, ownership dispersion (public), and investment opportunity have a positive and significant impact on the dividend policy at α = 0.05, insider ownership influence is also positive and significant at α = 0.1, while the beta has a positive but not significant effect.

Keywords: agency cost, beta, investment opportunities, and dividend.

Title: The Influence of Agency Cost, Market Risk, and Investment Opportunities on Dividend Policy

Author: DADANG PRASETYO JATMIKO

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Abstract: The accounting profession performs a role in giving reasonable assurance to the users’ of financial statements, the reliability and credibility of firms` financial statements. If there is lack of effective and credible audit function has resulted to fraud in many organizations, misappropriation and embezzlement of funds by accountants. This study is guided by the fundamental assumptions of accountant characteristics in achieving value and credibility in the financial reporting process.  The research is necessitated by the objectives of determining the relationship between the gender of accountant and financial report; establishing the correlation between gender of an accountant impacts on finacial reports; determine wether professional qualification impacts financial report; determine whether academic qualifications of an accountant impacts on financial report; and establish link between the experience of an accountant and financial report. Secondary data were the audit reports that were collected from the companies audited by the audit firm. The results confirmed the existence of a positive and significant relationship between accuracy of financial report and accountant characteristics. However, the results showed that there was no significance of gender of an accountant and accuracy of financial report. Therefore, increase of accountant academic qualification, experience of accountant and accounting professional certification leads to increase accuracy financial reporting.

Keywords: Auditor’s report, Qualified opinion, Unqualified opinion, Accuracy.

Title: The Relationship between Accountant Characteristics and Accuracy of Financial Reports

Author: Hussein Said Ahmed, Dr. Willy Muturi

International Journal of Management and Commerce Innovations

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