DETERMINANTS OF FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA
Studies on moderating effect of ownership structure on bank performance are scanty. To fill this glaring gap in this vital area of study, the authors used linear multiple regression model and Generalized Least Square on panel data to estimate the parameters. The findings showed that bank specific fa...
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| Format: | Article |
| Language: | English |
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EconJournals
2013-01-01
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| Series: | International Journal of Economics and Financial Issues |
| Subjects: | |
| Online Access: | http://www.econjournals.com/index.php/ijefi/article/view/334/pdf |
| _version_ | 1797924206987444224 |
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| author | Vincent Okoth Ongore Gemechu Berhanu Kusa |
| author_facet | Vincent Okoth Ongore Gemechu Berhanu Kusa |
| author_sort | Vincent Okoth Ongore |
| collection | DOAJ |
| description | Studies on moderating effect of ownership structure on bank performance are scanty. To fill this glaring gap in this vital area of study, the authors used linear multiple regression model and Generalized Least Square on panel data to estimate the parameters. The findings showed that bank specific factors significantly affect the performance of commercial banks in Kenya, except for liquidity variable. But the overall effect of macroeconomic variables was inconclusive at 5% significance level. The moderating role of ownership identity on the financial performance of commercial banks was insignificant. Thus, it can be concluded that the financial performance of commercial banks in Kenya is driven mainly by board and management decisions, while macroeconomic factors have insignificant contribution. |
| first_indexed | 2024-04-10T14:57:57Z |
| format | Article |
| id | doaj.art-b1cbb245521c43849fd5bc9e1fb77928 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T14:57:57Z |
| publishDate | 2013-01-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-b1cbb245521c43849fd5bc9e1fb779282023-02-15T16:07:14ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382013-01-0131237252DETERMINANTS OF FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYAVincent Okoth OngoreGemechu Berhanu KusaStudies on moderating effect of ownership structure on bank performance are scanty. To fill this glaring gap in this vital area of study, the authors used linear multiple regression model and Generalized Least Square on panel data to estimate the parameters. The findings showed that bank specific factors significantly affect the performance of commercial banks in Kenya, except for liquidity variable. But the overall effect of macroeconomic variables was inconclusive at 5% significance level. The moderating role of ownership identity on the financial performance of commercial banks was insignificant. Thus, it can be concluded that the financial performance of commercial banks in Kenya is driven mainly by board and management decisions, while macroeconomic factors have insignificant contribution.http://www.econjournals.com/index.php/ijefi/article/view/334/pdfFinancial PerformanceBank Specific FactorsMacroeconomic Variables |
| spellingShingle | Vincent Okoth Ongore Gemechu Berhanu Kusa DETERMINANTS OF FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA International Journal of Economics and Financial Issues Financial Performance Bank Specific Factors Macroeconomic Variables |
| title | DETERMINANTS OF FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA |
| title_full | DETERMINANTS OF FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA |
| title_fullStr | DETERMINANTS OF FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA |
| title_full_unstemmed | DETERMINANTS OF FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA |
| title_short | DETERMINANTS OF FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA |
| title_sort | determinants of financial performance of commercial banks in kenya |
| topic | Financial Performance Bank Specific Factors Macroeconomic Variables |
| url | http://www.econjournals.com/index.php/ijefi/article/view/334/pdf |
| work_keys_str_mv | AT vincentokothongore determinantsoffinancialperformanceofcommercialbanksinkenya AT gemechuberhanukusa determinantsoffinancialperformanceofcommercialbanksinkenya |