http://onlinesciencepublishing.com/index.php/ejef/issue/feed Eastern Journal of Economics and Finance 2021-08-27T00:51:40-05:00 Open Journal Systems <p>2305-9095</p> http://onlinesciencepublishing.com/index.php/ejef/article/view/444 Financial Performance of Insurance Firms. Does Leverage and Liquidity Matter? Evidence from Kenya 2021-08-17T02:37:10-05:00 Alex Maina Kamau alekx2004@gmail.com Tobias Olweny alekx2004@gmail.com Willy Mwangi Muturi alekx2004@gmail.com <p>The purpose of this study was to investigate the influence of firm attributes on the financial performance of insurance firms in Kenya. The study was anchored on trade off theory. The research philosophy adopted was positivism while the correlation research design was adopted. The study used secondary data which was collected using data collection sheet from Insurance Regulatory Authority (IRA), Association of Kenya Insurers (AKI) and individual firms’ websites. The target population of the study was 52 insurers that operated in Kenya for the ten years (2010-2018). The unbalanced panel data was analyzed using Random and Fixed effect model where Hausman test was used to establish to test the hypothesis. The study found that leverage and liquidity had a significant negative effect on financial performance of insurance firms in Kenya. The study recommends that insurance firms to embrace feasible financial leveraging strategies that can boost firm profitability. Also, they need to conduct effective liquidity management to maximize the value of the company and its financial performance.</p> 2021-06-14T00:00:00-05:00 Copyright (c) 2021 http://onlinesciencepublishing.com/index.php/ejef/article/view/445 A Comparative Study of Gender Diversity on Firm Value between Companies Listed on the Nairobi and Uganda Securities Exchange 2021-08-17T02:41:32-05:00 Veronica Mukyala vero.mukyala@gmail.com Lucy Rono vero.mukyala@gmail.com Lagat Charles vero.mukyala@gmail.com <p>The purpose of this study was to determine how inclusions of women in corporate boards affect the value of listed firms in Nairobi and the Uganda Securities Exchange. The study used a panel research design and the data was obtained through content analysis from audited financial statements spanning from 2012 to 2019 and only 48 firms from NSE and 12 firms from USE met the inclusion and exclusion criteria. The fixed and random models were used to test the hypothesis. Hausman test was used for model selection and the fixed effect model was selected over random effects. Results; results revealed board gender diversity of listed firms in USE was higher compared to NSE. Further results showed that board gender diversity significantly and positively affects the value of listed firms in USE, while insignificantly affect the value of listed firms in NSE. Board gender diversity in USE significantly affects the firm value, while board gender diversity in NSE insignificantly affects the firm value. It can be concluded firms with a higher proportion of women on the board of directors have high firm value. This study can highlight the importance of including/appointing women as the board of directors in improving the value of companies. As the practical contribution to enhancing firm value, management of the companies and the investors should champion for more women appointed in corporate boards.</p> 2021-07-19T00:00:00-05:00 Copyright (c) 2021 http://onlinesciencepublishing.com/index.php/ejef/article/view/555 Effect of Operating Cash Flow on Stock Return of Firms Listed In Nairobi Security Exchange 2021-08-27T00:51:40-05:00 Samoei Ben Kipngetich bensum009@gmail.com Joel Tenai joeltenai.jt@gmail.com Andrew Kimwolo kimwolo@gmail.com <p>The main aim of the paper was to establish the effect of operating cash flow on stock return of firms listed in NSE. The study was informed by Free Cash Flow (FCF) theory. Census survey was adapted to review financial statements for 29 listed non-financial firms at NSE that had consistent data for all the study variables. Secondary data was extracted for 12 years from 2007-2019 with the aid of a data collection sheet. Explanatory research design which is panel in nature was followed by this study. Both descriptive and inferential statistics were used in data analysis. Panel data regression was used to make inferences and test research hypothesis. Fixed and Random effects methods were used to analyze the balanced panel data using STATA statistical package and Hausman test established that Random effect model was the most ideal method to analyze data in this study. The findings indicated that operating cash flow positively and significantly influenced the stock returns for firms listed at NSE. The study concludes that operating cash flow information affects stock returns. Therefore, the study advocates for firms to increase their levels of operating cash flows through prudent utilization of cash resources since it enhances the stock returns.</p> 2021-08-27T00:00:00-05:00 Copyright (c) 2021