American Journal of Finance and Business Management
https://gprjournals.org/journals/index.php/AJFBM
<p><strong>American Journal of Finance and Business Management</strong> (AJFBM) is a high quality journal published by GPR Journals. The scopes of AJFBM include, but not limited to, Asset Pricing, Business Environments, Business Negotiations, Business Operations Management, Competition, Corporate Finance, Financial Econometrics, Financial Engineering, Financial Forecasting, Financial Intermediation, Investments, Managerial Decision Making, Risk Management, etc. AJFBM strives to maintain its quality publications through rigorous peer review of Papers. Manuscripts published in AJFBM are available as online publications and can also be availed as hard copies upon authors’ request. Papers can be submitted via email to <a href="mailto:journals@gprjournals.org">journals@gprjournals.org</a> or <a href="https://gprjournals.org/online-submission/">online submission</a>.</p>Global Peer Reviewed Journalsen-USAmerican Journal of Finance and Business Management 2958-3837<p><em>The authors retain the copyright and grant this journal right of first publication. This license allows other people to freely share and adapt the work but must give appropriate credit, provide a link to the license, and indicate if changes were made. They may do so in any reasonable manner, but not in any way that suggests the licensor endorses them or their use.</em></p>Effect of Market Culture on the Implementation of Corporate Strategy in Private Chartered Universities in Kenya
https://gprjournals.org/journals/index.php/AJFBM/article/view/296
<p><strong>Aim:</strong> This study aimed to examine the effect of market culture on the implementation of corporate strategy in private chartered universities in Kenya. The study also established the moderating effect of quality management systems on the relationship between market culture and implementation of corporate strategy in private chartered universities in Kenya.</p> <p><strong>Methodology: </strong>A cross-sectional survey research design was adopted. Both quantitative and qualitative data were used to seek the effect of clan culture on the implementation of corporate strategy. The accessible population included registrars, deans, directors, heads of departments, academic staff, and student leaders. This study used stratified random sampling and the target sample size was 240 participants. A pilot study was conducted with 24 participants to determine the reliability and validity of the questionnaire. Data from questionnaires was organized, coded, analyzed, and converted into quantitative summary reports for analyses using the Statistical Package for Social Sciences (SPSS) version 21 software to compute the relationships between dependent and independent variables. Qualitative data was analyzed thematically.</p> <p><strong>Results: </strong>Findings indicate that market culture is a significant positive predictor of corporate strategy implementation in the studied universities (β = 0.719, p < 0.01). It was also found that there was a statistically significant moderating effect of quality management system on the relationship between market culture and implementation of corporate strategy in private chartered universities in Kenya (β = 0.748, p< 0.022).</p> <p><strong>Conclusion: </strong>The findings highlight a positive effect of market culture on the implementation of corporate strategy in private chartered universities in Kenya. Furthermore, the study reveals that quality management systems play a significant moderating role in strengthening this relationship.</p> <p><strong>Recommendations: </strong>University management should facilitate the active participation of student leadership in governance. The study also recommends that leadership in private universities prioritize fostering a market-oriented culture by aligning strategic goals with market trends and emphasizing quality management systems to improve strategy implementation. The Commission for University Education (CUE) should strengthen its support for market-driven strategies and ensure that quality management is integrated into institutional frameworks. Additionally, the Ministry of Education should develop policies that promote a market-focused approach to curriculum design and support universities in adopting systems that enhance quality and strategic execution.</p>Joyce Wanjiku NderituEsther WaiganjoGeorge O Orwa
Copyright (c) 2024 Joyce Wanjiku Nderitu, Esther Waiganjo, George O. Orwa
https://creativecommons.org/licenses/by/4.0
2024-12-032024-12-0331739110.58425/ajfbm.v3i1.296Calendar Anomalies and Stock Returns Volatility at Nairobi Securities Exchange: An OLS and GARCH (1,1) Approach
https://gprjournals.org/journals/index.php/AJFBM/article/view/269
<p><strong>Aim: </strong>The Kenyan financial market is weakly inefficient due to calendar anomalies explained by stock returns volatility. However, there is a dearth of literature on how the results may vary when different models are applied especially in Africa. Therefore, this study attempted to establish the calendar anomalies in the stock returns volatility using OLS and GARCH (1,1) models.</p> <p><strong>Methods: </strong>A descriptive research design was adopted. The daily closing prices data for NSE 20 share index between January 1994 and December 2014 with a total of 5203 observations was used. <strong>Results: </strong>The results suggest that, the day of the week effect is significant in both models where Friday had the highest returns while Monday had the lowest returns but, the January effect is only explained in the OLS model which disappears in the GARCH (1,1).</p> <p><strong>Conclusion: </strong>The coefficients of the volatility equation for GARCH (1,1) are positive, significant and their summation is close to one indicating that the volatility is persistent at the NSE. The study however applied OLS and GARCH (1,1) which have limitations.</p> <p><strong>Recommendation: </strong>The study recommend the use of other GARCH models to determine if the findings are robust to different models.</p> <p><strong>JEL Classification:</strong> G11; G12; C31; C22</p>Alice Karume WakarindiChristine Nanjala Simiyu
Copyright (c) 2024 American Journal of Finance and Business Management
2024-08-192024-08-1931416110.58425/ajfbm.v3i1.269Effect of Credit Policies on Financial Performance of Commercial Banks in Uganda
https://gprjournals.org/journals/index.php/AJFBM/article/view/229
<p><strong>Aim:</strong> The purpose of this study was to investigate the effect of credit policies on the financial performance of commercial banks in Uganda.</p> <p><strong>Methods:</strong> This research employed a descriptive research design. The target population consisted of 40 credit managers from 20 commercial banks in Uganda. Purposive sampling was used to select the credit managers. Quantitative data was collected using a structured questionnaire and analyzed using SPSS version 26 through correlation and regression analysis. Qualitative data was collected through interviews with the bank managers. Qualitative data was analyzed thematically and presented in a narrative form.</p> <p><strong>Results:</strong> The results revealed a positive and significant relationship between credit policies and financial performance in commercial banks in Uganda. The null hypothesis was rejected, indicating that effective credit policies contribute to improved financial performance.</p> <p><strong>Conclusion</strong>: It was concluded that effective credit risk assessment, strategic credit allocation, an efficient credit monitoring system, the use of technology, a robust credit culture, and employee training and development are key factors influencing the effectiveness of credit policies and bank financial performance.</p> <p><strong>Recommendations:</strong> Banks should design and implement comprehensive training programs that cover all aspects of credit policies, including risk assessment, strategic credit allocation, credit monitoring, and the use of risk assessment software and data analytics tools. These programs should be tailored to employees' roles and responsibilities to ensure maximum relevance and effectiveness. Banks should foster a learning culture within the organization that encourages employees to continuously update their credit management skills and knowledge.</p>Ronald KatoGerald Irumba
Copyright (c) 2024 American Journal of Finance and Business Management
2024-01-082024-01-0831117Artificial Intelligence as an Emerging Tool in the Banking Industry: Utilization and Challenges
https://gprjournals.org/journals/index.php/AJFBM/article/view/286
<p><strong>Aim: </strong>The application of artificial intelligence (AI) offers an encouraging avenue for developments in the banking industry.</p> <p><strong>Methods:</strong> The study adopted a scoping review of methodology to provide a comprehensive overview of relevant research regarding the potential uses and challenges of AI in banking. Consumer expectations have evolved, emphasizing features such as payment gateways, swift transactions, and resilient banking services.</p> <p><strong>Results: </strong>Major utilization of the AI in banking industry includes enhanced customer engagement, satisfaction, and relationships, personalized financial guidance, smart digital wallets, regulation compliance and collaborative efforts, forecasting, tracking market trends, decision-making and problem-solving, anti-money laundering and fraud detection, automation of repetitive, large and time-intensive tasks, enhanced cybersecurity, and opportunity for digital financial inclusion.</p> <p><strong>Conclusion: </strong>Users encounter challenges involving security issues, privacy concerns, and the complexity of technology in AI-driven banking services.</p> <p><strong>Recommendation:</strong> While AI holds a crucial role in the banking industry, successful implementation demands ample allocation and consistent, predictable utilization of AI practices.</p>Anil NiroulaShruti Adhikari
Copyright (c) 2024 American Journal of Finance and Business Management
2024-11-042024-11-0431627210.58425/ajfbm.v3i1.286The Impact of Digitalization on FDI Inflows in Saudi Arabia
https://gprjournals.org/journals/index.php/AJFBM/article/view/263
<p><strong>Aim:</strong> This study investigated the impact of digitalization on foreign direct investment (FDI) inflows in Saudi Arabia. m</p> <p><strong>Methods:</strong> The study identified critical digitalization and institutional factors and hypothesized their influence on FDI inflows to Saudi Arabia. Multiple linear regression analysis using the Ordinary Least Squares (OLS) method was conducted on data from 1997 to 2022, utilizing SPSS.</p> <p><strong>Results:</strong> The outcomes revealed that digital infrastructure and government policy positively and significantly explain the FDI inflows in Saudi Arabia. The null hypothesis was rejected, indicating that effective digitalization and supportive government policy contribute to FDI inflows.</p> <p><strong>Conclusion:</strong> The study concluded that internet access, mobile phone usage, and favorable government policies are key factors in attracting FDI inflows into Saudi Arabia.</p> <p><strong>Recommendations:</strong> Policymakers should prioritize developing and implementing comprehensive digitalization strategies and regulations to improve digitalization and business-related institutions, raise the standard of digital transformation, and improve the regulatory environment framework to encourage more inward FDI inflows.</p>Hisham Jameel Bardesi
Copyright (c) 2024 American Journal of Finance and Business Management
2024-07-162024-07-1631184010.58425/ajfbm.v3i1.263