http://erepository.kafuco.ac.ke/123456789/262 Wed, 17 Jun 2026 15:15:46 GMT 2026-06-17T15:15:46Z http://erepository.kafuco.ac.ke/123456789/299 FINANCIAL MANAGEMENT PRACTICES AND FINANCIAL DISTRESS IN KENYAN PUBLIC UNIVERSITIES SHAVULIMO, PAUL Financial distress describes any situation where an individual's or company's financial condition leaves them struggling to meet their obligations when they are due. A number of public Universities are struggling financially to meet their daily operations and they have also failed to meet their obligations to creditors. Many studies have been done with emphasis on the private enterprises and many other studies fail to link financial management practices and distress in public universities. The main objective of this study was to establish the effect of selected financial management practices on financial distress of Kenyan Public Universities. The specific objectives were to: assess the effect of capital budgeting practices, establish the effect of working capital management practices, examine the effect of financial management information system, establish the effect of risk management practices and to evaluate the moderating influence of internal governance practices on the effect of selected financial management practices on financial distress of public Universities in Kenya. The study was guided by budgetary control theory, Walkers three preposition theory, risk management theory and systems theory. The positivism paradigm guided the study. The study adopted a mixed research design, targeting a population of 140 respondents comprising Deputy Vice Chancellors (Finance and Administration), Finance Officers, ICT Officers, and Internal Auditors from the 35 public universities in Kenya. Using a census approach, data was collected from 131 respondents across 31 universities.out of a total of 35 univerisities. Questionnaires were used to collect primary data while secondary data was used to obtain information on the dependent variable. Reliability was tested using Cronbach’s Alpha. Experts and factor analysis were used to test validity of instrument. Data was analyzed using descriptive statistics in the form of means, standard deviation and variances. Inferential statistics consisted of correlation analysis and multiple regression analysis to establish the relationship between the selected financial management practices and financial distress. The study depicted that financial management practices explain 54.5% and 59.4% variation in financial distress without and with moderating effect of internal governance practices. Regression analysis indicated that capital budgeting practices, working capital management, financial management information system and risk management practices had a significant effect on financial distress with a coefficient of -0.097, - 0.129, -0.091 and -0.133 respectively without moderating effect internal governance practices and -0.083, -0.161, -0.112 and -0.57 respectively with moderating effect internal governance practices. The study concluded that capital budgeting practices, working capital management, financial management information system and risk management practices moderated with internal governance practices had a negative and significant effect on financial distress. The study therefore recommended that universities should prioritize establishing good capital budgeting practices, public universities should establish comprehensive cash management policies to ensure efficient utilization of funds and that public universities should implement strict risk management measures and promote a culture of good internal governance. The study findings will help in coming up with laws and regulations that will address issues of financial distress in the education sector and in particular the public universities. To academic scholars the study will act as a source of empirical literature and grounds for conducting further studies in financial management practices and financial distress. Wed, 17 Sep 2025 00:00:00 GMT http://erepository.kafuco.ac.ke/123456789/299 2025-09-17T00:00:00Z http://erepository.kafuco.ac.ke/123456789/298 INTEGRATED REPORTING AND FIRM VALUE OF LISTED COMPANIES IN KENYA. Omare, Dominic Abuga Firm value in many companies has been deteriorating because of the lack of reporting financial and non-financial information, resulting in a lack of transparency and accountability. In today's world, most successful businesses recognize that any business venture's core purpose is to create firm value for investors, customers, and employees by adopting integrated reporting. Despite adopting integrated reporting, many companies are not doing well financially; hence, they need to do more research on integrated reporting. The study's main objective was to determine the effect of integrated reporting adoption on the firm value of listed companies in NSE. The specific objectives of the study were to determine the effect of financial capital reporting on the firm value of listed companies, to establish the effect of manufactured capital reporting on the firm value of listed companies, to evaluate the effect of environmental capital reporting on the firm value of listed companies, to examine the effect of intellectual capital reporting on the firm value of listed companies, to assess the effect of human capital reporting on the firm value of listed companies and to compare financial performance of firms that have adopted and those that have not adopted integrated reporting among listed firms at Nairobi Securities Exchange. Stakeholder theory, legitimacy theory, theory of intellectual capital, human capital theory, and trade-off theories guided the study. Positivism research philosophy was used to guide the study. A correlational research design was adopted. The study population comprised 23 companies adopting integrated reporting listed in the Nairobi Securities Exchange. The choice of the listed firms at the Nairobi Securities Exchange was validated because it was the only stock market in Kenya legally required to prepare integrated reports under the company act CAP 486. A census survey was employed. Secondary data was collected from the Nairobi Securities Exchange website from 2015 through 2022 for eight years. Panel summary statistics and panel data regressions were used to analyze the gathered data. The components of descriptive statistics included overall means, standard deviations, minimum and maximum ratios, the between-firm standard deviations, and the within- firm standard deviations. Panel data regressions included serial correlation tests, stationarity tests, Hausman tests, Breusch-Pagan Lagrange multiplier (LM) tests, and testparm tests. The Hausman test was used to select suitable models between the random effects (RE) and fixed effects (FE) for each variable modeling. The findings analyzed using STATA established that integrated reporting positively and significantly affects the firm value of listed companies in a way that increasing integrated reporting improves the firm's overall value. Firm value does not, however, vary significantly with time but is slightly influenced by unobserved firm-specific effects. Moreover, the benefits of adopting reporting standards are only felt in the long run. This finding reinforces existing research by adding the knowledge that the exact variance in firm value that unobserved firm-specific factors add to the idiosyncratic error can be determined when the appropriate model is employed. The findings are expected to be a key resource to policy makers as they will get additional information in formulating policies and guidelines concerning integrated reporting that will enhance proper reporting of financial and non-financial information to the stakeholders of various companies. Wed, 01 Oct 2025 00:00:00 GMT http://erepository.kafuco.ac.ke/123456789/298 2025-10-01T00:00:00Z http://erepository.kafuco.ac.ke/123456789/265 INTERNAL CONTROLS AND FINANCIAL ACCOUNTABILITY OF NATIONAL GOVERNMENT CONSTITUENCIES DEVELOPMENT FUND IN KENYA LIDOVOLO, PATRICK MALONGO The objective of National Government Constituencies Development Fund is to promote human and infrastructural development at the community and constituency levels. The fund is expected to be operated with the highest level of transparency, probity, propriety and accountability. Despite the elaborate measures put in place by the government to ensure transparency, financial accountability in many constituencies is still in still in doubt. The aim of the study was to examine the effect of internacial accountability of national Government Constituencies development fund in Kenya. The specific objectives were; to establish the effect of control activities, risk assessment, communication, monitoring and control environment on financial accountability of NG-CDF in Kenya.The nullhypothesis was adopted for all objectives that were all rejected based on results. The study was structured on; agency, fraud triangle and accountability theories. Positivism research philosophy guided the study. Correlation research design was adopted. The target population of the study was 1160 respondents while the sample population was 288 respondents consisting of; 72 committee members, 72 Sub County Accountants, 72 Fund Account Managers and 72 internal auditors. Primary data was obtained by use of questionnaire while secondary data was obtained from Auditor General’s reports and financial statements of the NG-CDF’s. Pilot test was carried out using 29 respondents. Cronbach Alpha was used to test internal consistency of the questionnaire. All the constructs had indicators of above 0.7 confirming reliability. KMO and Bartlett’s tests were carried to test validity. All constructs loaded values of above 0.4 thus confirming validity. Descriptive statistics included mean, standard deviation and variance. Inferential statistics consisted of correlation analysis and multiple linear regression analysis. Data was presented using tables, charts, and graphs. It was established that there exists a strong and positive association exists between internal controls and financial accountability for all the variables as confirmed by; r = 0.718 for control activities, r = 0.707 for risk assessment, r= 0.759 for monitoring, r = 0.703 for communication and r = 0.686 for control environment and financial accountability. The R-square value was 0.762. The results on the ANOVA showed F statistic of 15.513, P-value 0.008. All the constructs of internal controls were established to have a significant effect on unsupported expenditure which was confirmed by β =2.157, P-value 0.005, β =0.998, P-value 0.014, β=1.282, P-value of 0.004. β =0.371, P-Value of 0. 047 and β=1.13 6, P-value 0.009for control activities, risk assessment, monitoring communication and control environment respectively. It was recommended that the NG-CDF management committee should strengthen separation of duties and ensure that the stipulated guidelines for approval are followed at all times. Close scrutiny of all risk prone activities should be analyzed. External auditors must give unbiased reports. NG-CDF committee members should be honest and have no conflict of interest. The government will find the findings of this study crucial in creating policies that will improve financial management in public institutions like county governments, public secondary schools, and other parastatals in addition to NG-CDF. Thu, 01 Aug 2024 00:00:00 GMT http://erepository.kafuco.ac.ke/123456789/265 2024-08-01T00:00:00Z