Managing market risk for financial performance: experience from micro finance institution in Kenya
Journal Article
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| Format: | Article |
| Language: | English |
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Emerald Publishing Limited
2024
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| Online Access: | https://repository.daystar.ac.ke/handle/123456789/4580 |
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| author | Kahihu Peter Karugu , Wachira David Muturi and Muathe Stephen Makau |
| author_facet | Kahihu Peter Karugu , Wachira David Muturi and Muathe Stephen Makau |
| author_sort | Kahihu Peter Karugu , Wachira David Muturi and Muathe Stephen Makau |
| collection | DSpace |
| description | Journal Article |
| format | Article |
| id | oai:repository.daystar.ac.ke:123456789-4580 |
| institution | Daystar University |
| language | English |
| publishDate | 2024 |
| publisher | Emerald Publishing Limited |
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| spelling | oai:repository.daystar.ac.ke:123456789-45802024-05-09T06:55:28Z Managing market risk for financial performance: experience from micro finance institution in Kenya Kahihu Peter Karugu , Wachira David Muturi and Muathe Stephen Makau Kenya Foreign exchange risk Financial performance Interest rate Inflation rate Market risk Financial leverage risk Microfinance institutions Interest rate risk Inflation risk Journal Article Purpose – The purpose of this study was to investigate on managing market risk and financial performance, experience from microfinance institutions (MFIs) in Kenya. Design/methodology/approach – This study used positivism philosophy and used explanatory nonexperimental research designs. The targeted population was all the 13 registered deposit-taking MFIs in Kenya and a census approach was used. The study used secondary data which was collected and analyzed from microfinance Institutions annual audited financial reports for the period between 2014 to 2018. This study was anchored on two theories, namely, resource-based value theory and extreme value theory. Findings – The results indicated that interest rate and financial leverage risk had a positive significant effect on the financial performance of MFIs in Kenya. Foreign exchange risk was found to have a negative significant effect on the financial performance of MFIs. However, inflation rate risk was found to have no significant effect on the financial performance of MFIs. Research limitations/implications – This study recommended that the chief executive officers of MFIs should use the mechanism of identifying market risk variables, especially Interest rate, financial leverage and foreign exchange risks to enable them to put the necessary measures to mitigate those risks and enhance the financial performance of MFIs in Kenya. Originality/value – This study is unique as it touches the microfinance industry which has a steady fast growth in assisting accessibility of financial services to small and medium enterprises. Most of the previous study concentrated on other industry in the financial sector. 2024-05-09T06:50:53Z 2024-05-09T06:50:53Z 2021 Article Kahihu P. K., Wachira D. M., and Muathe S. M. (2021): Managing market risk for financial performance: experience from micro finance institution in Kenya. Emerald Publishing Limited https://repository.daystar.ac.ke/handle/123456789/4580 en Vol. 29 No. 5 application/pdf Emerald Publishing Limited |
| spellingShingle | Kenya Foreign exchange risk Financial performance Interest rate Inflation rate Market risk Financial leverage risk Microfinance institutions Interest rate risk Inflation risk Kahihu Peter Karugu , Wachira David Muturi and Muathe Stephen Makau Managing market risk for financial performance: experience from micro finance institution in Kenya |
| title | Managing market risk for financial performance: experience from micro finance institution in Kenya |
| title_full | Managing market risk for financial performance: experience from micro finance institution in Kenya |
| title_fullStr | Managing market risk for financial performance: experience from micro finance institution in Kenya |
| title_full_unstemmed | Managing market risk for financial performance: experience from micro finance institution in Kenya |
| title_short | Managing market risk for financial performance: experience from micro finance institution in Kenya |
| title_sort | managing market risk for financial performance: experience from micro finance institution in kenya |
| topic | Kenya Foreign exchange risk Financial performance Interest rate Inflation rate Market risk Financial leverage risk Microfinance institutions Interest rate risk Inflation risk |
| url | https://repository.daystar.ac.ke/handle/123456789/4580 |
| work_keys_str_mv | AT kahihupeterkaruguwachiradavidmuturiandmuathestephenmakau managingmarketriskforfinancialperformanceexperiencefrommicrofinanceinstitutioninkenya |
Financial risk management management of interest risk from a corporate treasury perspective in a service enterprise /