Accounting Disclosures and Firm Value of Commercial Banks Listed on the Nairobi Security Exchange, Kenya 1. Introduction and Background Over the last few decades, there has been an increase in the use of International Financial Reporting Standards (IFRS) and its predecessor the International Accounting Standards (IAS) in major corporations across the globe (Alfraih & Alanezi, 2015). According to the International Accounting Standards Board (IASB) (2014) more than 130 countries have adopted the use of the IFRS. The principle objective of having IFRS is to ensure high-quality reporting standards by companies. However, over the same period, there has been an endless stream of corporate collapses and scandals that were attributed to poor accounting standards and disclosures (Yink, Jide, & Emmanuel, 2015). Some of the scandals included Enron, Xerox, Reliant Resources, Global Crossings, CUC International, Adelphia Communications, Waste Management, Rite Aid and World Com (Waweru, 2018). The Xerox and Enron scandal combined cost the economy of the United States more than $ 35 billion. These scandals have not been limited to the United States with numerous scandals being reported across the globe. In Kenya, various companies have been involved in the misappropriation of funds including Simple Homes Holding Cooperatives, Haco Tiger Brands, Dubai Bank, Imperial Bank, Uchumi, CMC Holdings, Mumias Sugar and Kenya Airways (Guguyu.2015; Mwiti, 2017). Following the closure of Chase Bank in 2016, it emerged that more than Kshs. 16.6 billion had been lent to the bank insiders most of whom were the banks directors. This information had not been disclosed by the banks auditors despite it being a mandatory requirement (Herbling, 2016). This was particularly worrisome given that two other banks Dubai Bank and Imperial Bank had been closed due to similar irregularities. Indicating perhaps that the information disclosed being disclosed by entities in Kenya was not adequate or accurate. As the Kenyan government makes concerted efforts to implement its economic blue print dubbed Vision 2030, one of the key issues that needs to be addressed is building investor confidence in the economy. According to Mugwe (2012), the ranking of Kenya in the global competitive report is poorer than it should be due to the unethical behaviour of firms, strength of investor protection, integrity of auditing and reporting standards, and the protection of minority shareholders. Due to the numerous corporate scandals, the demand for corporate transparency in Kenya has arisen, particularly for firms listed at the Nairobi Security

Profitability is a key aspect of organization financial performance. Kenya SACCOs have been rated fastest growing SACCOs in Africa. However, this growth is largely attributed to growth in membership and penetration. On the other hand the sub sector has recorded irregular trend on the profitability over the last half a decade. Though past literature has tried to link financial risk management to profitability levels, a range of knowledge gaps remain undressed. The current study therefore sought to establish the effect of financial risk management on profitability targeting deposit-taking SACCOs in Nyeri County. To address this objective, the study targeted the following specific objectives; to examine the effect of credit mitigation, liquidity risk controls operational risk mitigation and finally compliance risk mitigation on profitability of deposit taking SACCOs in Nyeri County. Descriptive study design adopted targeting a population of 8 deposit-taking SACCOs. A census study approach was used to subject all the SACCOs to study. The respondents comprised of deposit taking SACCO managers or operational manager. Thus, in total, the study targeted 8 respondents from the management of the SACCOs. Questionnaires were adopted as a tool for data collection. The researcher administered questionnaires to the respondents by dropping to the respondent office and collected at convenient date agreed by both parties. Before undertaking the study, the researcher conducted a reliability test to assess the consistency of the tool using Cronbach’s Alpha. The study used descriptive and inferential statistic in summarizing the data. Under descriptive statistics, the researcher used mean and standard deviation. To test the significance of study variables, the researcher used Pearson correlation and simple linear regressions. The researcher adhered to research ethic during data collection period. The study findings are presented in charts and tables. The study found compliance risk control; liquidity risk control and operational risk control had significant effect on the performance of Saccos in Nyeri while credit risk control was found insignificant in predicting performance of Saccos in Nyeri County. The study recommends Saccos to intensify the compliance risk control, liquidity risk control and the operational risk control practices in enhancement of Sacco’s performance.

Commercial banks serve as key financial intermediaries in facilitation of the flow of money in the banking industry. Commercial banks offer credit to investment banks in order to offer investment opportunities for risky investments especially for financial securities using depositors’ money. Globally, banks are affected by broad difficulties in the operating environment. The banking industry has embraced innovation to sustain competitiveness. Financial innovations used by commercial banks revolve around the latest product, service and its conveyance to consumers. Consequently, this information influenced the research with its aim as; investigating innovative banking applications and monetary capability of banks. Particular goals included examining how; real time gross settlements (RTGS), electronic fund transfers (EFT), pay bill innovation in mobile banking and the extent of agency banking influence monetary potential of banks. Research anchored on the Schumpeter theory of innovations, the agency and bank-led theories. It was explanatory in nature and applied a census approach to gather information. The targeted group included commercial banks registered under the Central Bank totalling to 42 tiers 1. Raw and derived data was equally utilized including, financial statements and face to face interviews with top level managers. Collected information was examined by SPSS. Given conclusions were dispensed descriptively, and by inferring to statistical presentations. The resulting conclusion was that; when RTGS, agency banking, EFT, and mobile banking are solely brought up/down by a single unit, financial performance increased/ decreased by 0.163, 0.27, 0.197, and 0.318 units. At a constant however, financial performance remained at 0.236 out of 5 units. In conclusion, commercial in banks have significantly relied on innovative banking practices to shift their financial performance to new heights. The study has particularly placed both mobile and agency banking at a more central position in driving financial performance to the desired level than other factors including the RTGS and EFT. As part of the recommendations, managements of commercial banks should consider scaling up their adoption of RTGS, agency banking, EFT, and mobile banking as ways of reducing the operating cost of their respective banks reducing banking hall congestions since most of the frequently sought banking services can be achieved without one on one meeting with the bank tellers. Management should also consider adopting more innovative banking practices besides those this research investigated.

Financing decisions have been a challenge to real estate developers in Kenya. This is because, real estate investments are perceived to be capital intensive in nature. It is expected that real estate sector should develop in line with population increases which characterises most emerging economies. However, the provision of housing units per year is below the demand. In Nairobi region the demand for housing is 200,000 units per year while the actual production is estimated to be 50,000 units annually thus outlining a shortage of 150,000 units. Past studies indicate that where a robust financial market prevails, investors are able to access funds for investment projects. This current study seeks to establish the effect of financing option on real estate growth in Kenya.  The specific objectives were; to determine the effect of mortgage financing on growth rate of real estate development companies in Kenya, to find out the effect of retained earnings on growth rate of real estate development companies in Kenya, to establish the effect of private equity on growth rate of real estate development companies in Kenya, to determine the effect of joint venture on growth rate of real estate development companies in Kenya and  assess the moderating effect of firm size on relationship between financing options and growth rate of real estate development companies in Kenya. This study was be anchored by the following theories namely: lien theory of mortgages, pecking order theory, transaction costs theory, resource dependency theory and housing cycle theory. The target population of this study comprised of all the seventy-two companies who are members of the Kenya Property Developers Association (KPDA). The sample size comprised of twenty three companies which was thirty percent of the sample frame. The sample size was selected using simple random sampling design. This study used descriptive research design with a regression model with the regressor being real estate growth rate which was expressed in growth rates of housing units for each firm. Therefore, this study followed panel data analysis as individual firm data was collected for a time span of five years 2014 to 2018. Results showed that mortgage financing positively but insignificantly affected growth rates of real estate development companies in Kenya. Further results showed that retained earnings as source of financing option impaired significantly growth rates of real estate development companies. Private equity was found to improve growth rates of real estate development companies significantly.  Joint venture too positively but insignificantly influenced growth rates of real estate development companies in Kenya. Lastly, firm size was found to be a non-moderator but rather an explanatory variable and impaired growth rates in a significant manner. This study recommended that real estate development companies should increase use of private equity in financing housing projects as this increases growth rates of the entities.