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| Paper Type | : | Research Paper |
| Title | : | Effect of Trading Activity on Financial Leverage and Financial Distress Likelihood of Listed Firms in Kenya |
| Country | : | Kenya |
| Authors | : | Josephat Cheboi Yegon || Naomi C. Koske |
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: | 10.9790/5933-0905010111  |
Abstract: Over the years, numerous cases of financial distress have been witnessed among listed firms in Nairobi Securities Exchange. Trading activity affects corporate financial decisions by reducing cost of capital and facilitating access to more funds on the capital markets. Consequently, trading activity enhances firm performance due to the feedback effect. In view of the aforementioned, the primary aim of this study is to determine the role of trading activity on the relationship between financial leverage and the likelihood of financial distress among listed firms in Kenya. The analysis is based on a sample of 40 listed firms on the Nairobi Securities Exchange-Kenya for the period 2006- 2015. The study found a positive and significant effect of financial leverage (β=0.824; p<0.05) on the likelihood of financial distress. Subsequently, when trading activity was introduced, the findings.........
Keywords: Financial Distress, Trading Activity, Financial Leverage, Feedback
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| Paper Type | : | Research Paper |
| Title | : | Fiscal Policy and Public Debt in Kenya |
| Country | : | Kenya |
| Authors | : | Justus Makau || Kennedy Ocharo || Stephen Njuru |
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: | 10.9790/5933-0905011224 |
Abstract: Fiscal policy in Kenya has been unstable. Fiscal balance to GDP ratio worsened from a surplus of 0.2 percent to a deficit of 7.6 percentwhile debt to GDP ratio rose from 25.4 to 56.2 percent between 1963 and 2015. This was against deficit target of 4.8 and debt ratio of 41.4 percent in 2015. The continued build up of debt implies debt stabilization is not a priority and high debt may lead to adverse effects to the economy. The paper estimated the optimal fiscal balance to GDP ratio needed to stabilize debt levels and establish how the government reacts to changes in debt levels using fiscal reaction function in order to establish if the government was concerned with debt stabilization. The government requires an average fiscal deficitratio of four percent between 2016 and 2030. Fiscal policy has not been responding adequately to changes in debt levels as the government pursued an expansionary..........
Keywards: Debt stabilization, fiscal balance, fiscal reaction function, fiscal consolidation, optimal debt
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| Paper Type | : | Research Paper |
| Title | : | Effects of Economic Growth on Poverty Reduction In Nigeria |
| Country | : | Nigeria |
| Authors | : | Oyegoke O. Ebunoluwa || Wasiu A. Yusuf |
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: | 10.9790/5933-0905012529 |
Abstract: This paper explored the effect of economic growth on poverty reduction in Nigeria using a time series data spanning from 1980-2016. Unit Root and Johansen Cointegration tests were carried out to determine stationarity and long-run relationship among the variables respectively, while the VAR was carried out to determine the effect of Government expenditure, unemployment growth rate and Real GDP on poverty incidence. The result shows that Government expenditure is positively related to poverty incidence. This suggests that the poor are not benefitting from the economy at large, especially from total government expenditure. The GDP coefficient (a proxy for economic growth) conforms to the a-priori expectation, which depicts a negative relationship between economic growth and poverty incidence, while unemployment relates positively to poverty reduction. Therefore,..........
Keywards: Economic growth, Poverty Incidence, GDP, Labour-intensive, Vector Autoregressive.
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