Nixon S Mugilwa, J. Aduda, Kennedy O. Okiro, Patersson Magutu
Abstract The study focused on assessing how the funding structure mediates the relationship between corporate governance (CG) and financial performance (FP) in deposit-taking Savings and Credit Cooperative Organizations (SACCOs) in Kenya from 2018 to 2022. The research covered all 172 deposit-taking SACCOs in Kenya, using longitudinal data sourced from annual financial reports and supervision reports by the Sacco Societies Regulatory Authority (SASRA). To estimate the relationships, the fixed effect model was utilized, justified by the Hausman specification test. The findings indicated that the funding structure acts as a partial mediator in the CG-FP relationship. This implies that while CG has a direct impact on FP, the funding structure also significantly influences this relationship. These findings are critical for theoretical development, as they enhance the understanding of how CG affects FP through the funding structure. Moreover, the results have significant policy implications. For regulators like SASRA, the findings provide insights into crafting policies that strengthen CG practices to improve FP with in SACCOs. For SACCO management, the study offers guidance on developing strategies that align their funding structures with effective governance practices to achieve better financial outcomes. Keywords: Corporate Governance, Funding Structure, Financial Performance; Deposit Taking SACCO’s.
{"title":"Does Funding Structure Mediate the Relationship Between Corporate Governance and Financial Performance? Evidence from Deposit Taking Sacco's in Kenya","authors":"Nixon S Mugilwa, J. Aduda, Kennedy O. Okiro, Patersson Magutu","doi":"10.47260/jfia/1321","DOIUrl":"https://doi.org/10.47260/jfia/1321","url":null,"abstract":"Abstract\u0000\u0000The study focused on assessing how the funding structure mediates the relationship between corporate governance (CG) and financial performance (FP) in deposit-taking Savings and Credit Cooperative Organizations (SACCOs) in Kenya from 2018 to 2022. The research covered all 172 deposit-taking SACCOs in Kenya, using longitudinal data sourced from annual financial reports and supervision reports by the Sacco Societies Regulatory Authority (SASRA). To estimate the relationships, the fixed effect model was utilized, justified by the Hausman specification test. The findings indicated that the funding structure acts as a partial mediator in the CG-FP relationship. This implies that while CG has a direct impact on FP, the funding structure also significantly influences this relationship. These findings are critical for theoretical development, as they enhance the understanding of how CG affects FP through the funding structure. Moreover, the results have significant policy implications. For regulators like SASRA, the findings provide insights into crafting policies that strengthen CG practices to improve FP with in SACCOs. For SACCO management, the study offers guidance on developing strategies that align their funding structures with effective governance practices to achieve better financial outcomes.\u0000\u0000Keywords: Corporate Governance, Funding Structure, Financial Performance; Deposit Taking SACCO’s.","PeriodicalId":499731,"journal":{"name":"Journal of Finance and Investment Analysis","volume":"81 11","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141817350","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Travel and tourism represent one of the largest industries in the world as far as percentages of GDP and occupation are concerned, consequently, asset managers could be interested to select listed hotel stocks in their portfolios. The hotel industry has shown some difficulties not only in periods of financial, but also during the health crisis (Covid-19), when global and local restrictions on travel and tourism had a negative effect on the hotel sector. This study aims to analyze how listed hotel stocks could improve their contribution to portfolio diversification in different stages of the market. First, we use a constraint mean-variance approach to analyze the effect of diversification, and then we study the difference in the performance of the hotel sector by using the Risk-Adjusted Performance (RAP) measure. We analyze three sample periods: a) the whole sample (01/2000-09/2021); b) the Financial Crisis sample (06/2007-06/2012) and c) the COVID sample (02/2021-09/2021). Our findings contribute to a good understanding of financial patterns in the hotel industry as an asset class at different stages and support our hypothesis of its possible positive contribution in terms of diversification and performance. JEL classification numbers: G11, G12, G15 Keywords: Portfolio Management, Hotel Stocks, Financial Crisis, Health Crisis, Tourism.
{"title":"The Impact of the Financial and the Health Crisis on Listed Hotel Stocks","authors":"Mauro Aliano, Claudio Boido, Giuseppe Galloppo","doi":"10.47260/jfia/1223","DOIUrl":"https://doi.org/10.47260/jfia/1223","url":null,"abstract":"Abstract Travel and tourism represent one of the largest industries in the world as far as percentages of GDP and occupation are concerned, consequently, asset managers could be interested to select listed hotel stocks in their portfolios. The hotel industry has shown some difficulties not only in periods of financial, but also during the health crisis (Covid-19), when global and local restrictions on travel and tourism had a negative effect on the hotel sector. This study aims to analyze how listed hotel stocks could improve their contribution to portfolio diversification in different stages of the market. First, we use a constraint mean-variance approach to analyze the effect of diversification, and then we study the difference in the performance of the hotel sector by using the Risk-Adjusted Performance (RAP) measure. We analyze three sample periods: a) the whole sample (01/2000-09/2021); b) the Financial Crisis sample (06/2007-06/2012) and c) the COVID sample (02/2021-09/2021). Our findings contribute to a good understanding of financial patterns in the hotel industry as an asset class at different stages and support our hypothesis of its possible positive contribution in terms of diversification and performance. JEL classification numbers: G11, G12, G15 Keywords: Portfolio Management, Hotel Stocks, Financial Crisis, Health Crisis, Tourism.","PeriodicalId":499731,"journal":{"name":"Journal of Finance and Investment Analysis","volume":"12 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136296190","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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