Faculty of Business Studies

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Browsing Faculty of Business Studies by Subject "Commercial Banks"

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    Effect of Liquidity Risk on Shareholders’ Wealth in Commercial Banks Listed at The Nairobi Securities Exchange
    (Chuka University, 2022) Mogusu, M.; Nkari, I. M.; Wabwire, J. M.
    Shareholders’ wealth is among key decisions in a firm because it has a bearing on overall investor perception and firm value. There has been concern about declining value of shareholders’ wealth among commercial banks listed at the Nairobi Security Exchange (NSE). Previous studies have linked financial risk to shareholders’ wealth. Researchers however fail to agree on the magnitude and direction of the effect. It is not established how liquidity risk would affect shareholders’ wealth of commercial banks listed at the NSE. The objective of this study was to establish the effect of Liquidity risk on Shareholders’ wealth of Commercial Banks listed at the NSE. Descriptive research design was adopted. The target population was eleven commercial banks that had been constantly listed at the NSE from 2013-2019. A census was conducted to collect data from the eleven banks due to the smallness of the population. Data was collected using a checklist. Data was obtained from published financial statements and the Banking survey publications for seven years from 2013 to 2019. Data was analyzed using simple and multiple regression analysis with the help of SPSS version 25.0. Hypothesis was tested using t-statistic at 5% significance level. The study found that liquidity risk had a negative effect on shareholders’ wealth (regression coefficient -0.556, p-value of 0.023). Firms that have high liquidity have more cash flow and are able to take investment opportunities and hence increase shareholders’ value. Commercial banks should come up with ways of minimizing this risk.
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    Value Based Customer Relationship Management and Satisfaction of Commercial Banks’ Account Holders in Kenya
    (Kenya. International Journal of Academic Research in Business and Social Sciences,, 2018-05-29) Mwirigi,Rael Nkatha; Maina,Samuel; Kimencu, Linda
    Customer satisfaction is a dynamic parameter for measuring business organizational success. As a modern measure for service quality, it ensures investment in development of customer focused management strategies such as value based CRM. Globally, value based CRM has been applied in the banking sector to enhance service quality and the resultant customer satisfaction which increases competitiveness, customer retention, loyalty and profitability. Despite implementation of value based CRM programs by commercial banks to increase satisfaction of account holders, customers continue to be dissatisfied with banking services. Customized services, personalized communication and complainant management are value based challenges that commercial banks have to manage in order to remain profitable and competitive. The specific objective of this study was to establish the effect of value based CRM on satisfaction of commercial banks account holders in Kenya. This study covered all commercial banks registered by Central Bank of Kenya and focused on headquarters of the banks. A sample of 400 respondents was selected from a target population of 28,324,334 account holders. This study used multiple regression analysis to establish the relationship between study variables. The study established that value based CRM had a significant positive linear relationship explaining 40.9% (R2 = 0.409) variation in satisfaction of commercial banks account holders in Kenya. Based on the findings, the study recommends that commercial banks should invest more in value based CRM strategies such as customized products and services, personalized communication and complaint management because they have a significant effect on account holder satisfaction. This study, further recommends that commercial banks should address value based CRM challenges relating to service customization, personalized communication and complaint handling which significantly affect satisfaction with banking services and profitability.