A survey on transparency and disclosure of risk information in the Kenyan banking industry
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Date
2009Author
Mbugua, Elizabeth Nyokabi
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The study sought to explore the extent of transparency and disclosure of risk practices
in the banking industry in Kenya. Emphasis was on the following research questions;
extent to which Kenyan Banks disclose risk information and the factors that influence
the disclosure of risk information.
Primary data was collected through questionnaires and distributed to senior managers
in the banks operating in Kenya. Data collected was analyzed by use of descriptive
statistics and SPSS (12.0) was used for the purpose of the analysis. Results obtained
indicate that all banks disclose risk information in the annual audited accounts.
However, risk disclosure is still a new concept as only 57% of the banks had been
disclosing risk information for a period of over 3 years. Majority of the banks indicated
that disclosure of risk information resulted in benefits such as increased management
and board credibility, better management of business risks as well as improved
corporate governance. The banks ranked credit and liquidity risks as the most
important risks that require to be disclosed.
The study’s major limitation was the low response rate at 51% considering the size of
the banking industry in Kenya. However, on the positive side, the study can be used as
the foundation in the extent of disclosure of risk information in the banking industry as
well as to other financial sectors in Kenya
Citation
Mbugua, 2009Sponsorhip
University of NairobiPublisher
School of Business
Description
MBA - Thesis