Browsing Thesis and Dissertations : MCOM by Issue Date
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Oketch, Peter (Strathmore University, September 9, 2006)[more][less]
URI: http://hdl.handle.net/123456789/1137 Files in this item: 2
Peter Oketch.pdf (308.1Kb)semantic_web_technologies.pdf (478.6Kb) -
Mwandembo, Christopher (Strathmore University, 2009)[more][less]
Abstract: Staff layoffs in Kenya seem like the most prevalent solutions available to management teams of companies faced with economic difficulty. This study targeted companies quoted in the Main Investment Market Segment of the Nairobi Stocks Exchange, with a view of finding out the drivers to downsizing; its outcomes (costs and benefits); other factors impacting these outcomes and ways of enhancing the success of the strategy. Consistent with the review of literature, the study found out that downsizing is motivated by economic, strategic and technological reasons. the positive outcomes are increased profitability, improved productivity, better strategic networks and leaner structures. on the flip side, the adverse effects include reduced staff morale, hampered innovative capacity, injured corporate reputation and loss of stock knowledge. In order to enhance the success of downsizing, business leaders may use financial incentives, pre and post retrenchment counseling to the exits and survivors respectively, and offering alternative training or sources of income. however, this study also found that the positive outcomes of downsizing may also be achieved using other ways. For example, increased profitability may be attained by boosting the number of units sold, enhancing market penetration or improving production efficiency. a review of outcomes of downsizing vis-a-vis their underlying drivers therefore suggests that staff layoffs in themselves may be more injurious to the firm than beneficial. positive outcomes can be achieved by other means. downsizing should therefore only be used as strategic initiative aimed at increasing productivity and /or efficiency while retaining the most valuable resource in production - the human capital. Description: Partial fulfillment for award of Master of Commerce - Strathmore University URI: http://www.e-library.strathmore.edu/xmlui/handle/123456789/930 Files in this item: 1
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Lari, Leonard Rang'ala (Strathmore University, 2009)[more][less]
Abstract: The study aimed at proving that the financial ratios currently computed by Savings and Credit Co-operative Societies (SACCOs) in Kenya may not assist users of the financial reports towards detection of fraudulent financial reports; other ratios can bring in light possible fraud. Unpublished related previous studies in Kenya have dealt with both companies and co=operative movement from different perspectives. The results at different levels of this study indicate that the best financial ratios able to bring to light fraudulent financial statements are : members' shares and deposits dividend return, member's loan schedule balance/loan ledge balance; financial investment/total assets; (liquid investments + liquid assets - short term creditors)/total assets; non-earning liquid assets/total assets; net loans to members/total assets; gross loans to members/total assets, members' deposits/total assets. Second best are : net profit/total assets ratio; total operating expenses/average total assets ratio; and growth in members' loans rate. The results support the general alternative hypothesis that financial ratios can detect fraudulent financial reporting (FFR) by SACCOs in Kenya. Specific ratios not currently in use, in the SACCOs sector have the power to reveal FFR. The sample of 46 SACCOs (23 of them affected by fraud) were deliberately chosen. The analysis of ratios was conducted on 27 covariates, using the following methods: stepwise logistic regression model, discriminant analysis, and Pearson correlation - a method used to measure and confirm the possibility of earnings manipulation. According to the regulator, fraud poses a threat to the future existence of SACCOs in Kenya. The limitations to this study include: existence ofa possibility of having other unidentified ratios that can detect fraud, some financial reports could not be used to to incomplete reporting structures and information, and the sample of fraudulent financial reports and non-fraudulent financial reports were limited to reported cases only. Further study is suggested to determine the extent of earnings management and the power of ratios in detection of FFR using a larger sample of SACCOs, beside the multipurpose cooperatives and marketing co-operatives to complete the results of this study. Description: Cite this article as : Lari, L.R. (2009). The power of financial ratios in determining fraudulent financial reporting : the case of Savings and Credit Co-operative Societies in Kenya. MCom. Thesis. Strathmore University. Nairobi. Available online : http://www.e-library.strathmore.edu/xmlui/handle/123456789/921 URI: http://www.e-library.strathmore.edu/xmlui/handle/123456789/921 Files in this item: 1
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