The Politics of revenue Allocation and Resource Control in Kenya: Implications for County Governments stability
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Date
2021-06-09Author
Engefu, G
Omoro, N.O
Kiinyua, H
Type
ArticleLanguage
en_USMetadata
Show full item recordAbstract
Purpose - the purpose of the paper is to establish the existence of ERM components in the integrated
financial statements and further establish the relationship between ERM and firm performance.
Design/Methodology/Approach- The study adopted descriptive research design and considered the
entire population of the seventeen financial firms listed at the NSE for a period of two years, 2017 and
2018. The study used secondary data. The data was analyzed using descriptive statistics and Pearson‟s
correlation analysis.
Findings- The study findings revealed that whereas most firms adopted and disclosed the ERM practices
in their annual integrated reports, there was no significant correlation between ERM and firm
performance among financial firms listed at NSE. But the general understanding was that ERM consists
of risk governance, which is a set of mechanisms that deals with the agency problem of risk management
and risk aggregation, which is a set of mechanisms that deals with the information problem of risk
management.
Research limitations/implication- The study thus recommends that the management of the financial
firms listed at the NSE should allocate very minimal resources in ERM implementation to ensure that
they are able to handle both agency and information problems as required by the regulators but not with a
view of enhancing firm performance.
URI
http://uonjournals.uonbi.ac.ke/ojs/index.php/adfj/article/view/743http://erepository.uonbi.ac.ke/handle/11295/155001
Citation
Engefu, G. Omoro, N.O Kiinyua H (2021). The Politics of revenue Allocation and Resource Control in Kenya.. African Development Finance Journal. 5(1). 160-175Publisher
ADFJ