EFFECT OF RISK EVALUATION ON PERFORMANCE OF FINANCIAL INSTITUTIONS

IF 2 Q2 BUSINESS, FINANCE International Journal of Accounting Pub Date : 2017-08-14 DOI:10.47941/JACC.183

F. K. Lagat

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引用次数: 4

Abstract

Purpose : The purpose of the study was to determine the effect of risk evaluation on performance of financial institutions. Methodology : The study used explanatory research design. The study used stratified random sampling to select respondents from target population comprising of managers of 46 commercial banks, 52 Micro Finance institutions (MFIs) and 200 SACCOs and a sample size of 239 respondents obtained. Data was collected using questionnaires. Descriptive statistics was presented, while inferential statistics was done using Pearson product moment correlation. Results: There was a positive influence of risk evaluation [r = .813, p<.05] on the performance of financial institutions was obtained. The risk evaluation positively influenced the performance of financial institutions. The risk evaluation had positive relationship with performance of financial institutions (P<0.05). The null hypothesis H O3 stating that there is no significant effect of risk evaluation on performance of financial institutions was rejected . This indicates that for each increase in the risk evaluation , there is 0.821 increase in performance of financial institutions. Unique contribution to theory, practice and policy : The study has established the importance of ownership structure as a system of corporate governance that significantly moderates the relationship between risk management practices and performance of financial institutions can exploit various risk management practices identification, analysis, evaluation and monitoring should be enhanced so as to bring efficiency in the performance of financial institutions. These may be achieved through establishment and implementation of risk identification, analysis, evaluation and monitoring policy framework which will significantly influence performance of financial institutions and enhance shareholder capabilities to evaluate all risks that can hinder the financial institutions from achieving their set objectives

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风险评价对金融机构绩效的影响

目的:研究的目的是确定风险评估对金融机构绩效的影响。研究方法:采用解释性研究设计。本研究采用分层随机抽样的方法，从46家商业银行、52家小额信贷机构(MFIs)和200家SACCOs的管理人员中抽取受访者，样本量为239人。通过问卷调查收集数据。提出了描述性统计，而推论统计是利用皮尔逊积矩相关。结果:风险评价有正向影响[r = .813, p<。[05]对金融机构绩效的影响。风险评价对金融机构绩效有正向影响。风险评价与金融机构绩效呈正相关(P<0.05)。拒绝风险评价对金融机构绩效无显著影响的原假设ho3。这表明，风险评价每增加一个等级，金融机构的绩效就会增加0.821。在理论、实践和政策方面的独特贡献:本研究确立了股权结构作为一种公司治理体系的重要性，它可以显著调节风险管理实践与金融机构绩效之间的关系，可以利用应加强对各种风险管理实践的识别、分析、评价和监测，从而为金融机构的绩效带来效率。这些目标可通过建立和实施风险识别、分析、评价和监测政策框架来实现，这将对金融机构的业绩产生重大影响，并增强股东评价可能阻碍金融机构实现其既定目标的所有风险的能力

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Accounting BUSINESS, FINANCE-

CiteScore

1.20

自引率

0.00%

发文量

期刊介绍： The aim of The International Journal of Accounting is to advance the academic and professional understanding of accounting theory, policies and practice from the international perspective and viewpoint. The Journal editorial recognizes that international accounting is influenced by a variety of forces, e.g., governmental, political and economic. Thus, the primary criterion for manuscript evaluation is the incremental contribution to international accounting literature and the forces that impact the field. The Journal aims at understanding the present and potential ability of accounting to aid in analyzing and interpreting international economic transactions and the economic consequences of such reporting. These transactions may be within a profit or non-profit environment. The Journal encourages a broad view of the origins and development of accounting with an emphasis on its functions in an increasingly interdependent global economy. The Journal also welcomes manuscripts that help explain current international accounting practices, with related theoretical justifications, and identify criticisms of current policies and practice. Other than occasional commissioned papers or special issues, all the manuscripts published in the Journal are selected by the editors after the normal double-blind refereeing process.