EFFECTS OF MANAGEMENT PROFICIENCY ON FINANCIAL PERFORMANCE OF FOREIGN COMMERCIAL BANK, KENYA

Geoffrey Nyakundi Ongiti, Christopher m, Mutembei

Abstract: Purpose; The study sought to examine Management Proficiency on financial performance of foreign commercial banks in Kenya from period of 2013 to 2019.

Design/Methodology/Approach; The return on equity (ROE) and return on asset (ROA) were used as measure on measure of financial performance measures on foreign commercial banks in Kenya. The descriptive, correlation and panel regression analysis based on fixed effect model with help STATA.

The Results; It indicated that an R squared of 0.6956 was obtained that implies that 69.56 percent of the variations in financial performance of foreign commercial banks in Kenya was accredited to capital adequacy, asset quality and management efficiency. A p-value of 0.0000 further endorsed that the variables that were used namely: capital adequacy, asset quality and management efficiency had significant effect predicting the financial performance of foreign commercial banks in Kenya. The model had a constant value of 0.87 thus inferred that in the absence of capital adequacy, asset quality and management efficiency, the value of financial performance of foreign commercial banks in Kenya was 0.87.

Originality/value: The main study objective was to provide the empirical evidence on management proficiency on financial performance on foreign commercial banks in Kenya and demanded literature gaps

Keywords: Financial performance, Asset quality, Capital Adequacy and management efficiency.

Title: EFFECTS OF MANAGEMENT PROFICIENCY ON FINANCIAL PERFORMANCE OF FOREIGN COMMERCIAL BANK, KENYA

Author: Geoffrey Nyakundi Ongiti, Christopher m, Mutembei

International Journal of Social Science and Humanities Research 

ISSN 2348-3156 (Print), ISSN 2348-3164 (online)

Research Publish Journals

Vol. 9, Issue 3, July 2021 - September 2021

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EFFECTS OF MANAGEMENT PROFICIENCY ON FINANCIAL PERFORMANCE OF FOREIGN COMMERCIAL BANK, KENYA by Geoffrey Nyakundi Ongiti, Christopher m, Mutembei