BANK RESTRUCTURING STRATEGIES AND PERFORMANCE OF COMMERCIAL BANKS LISTED ON NAIROBI SECURITIES EXCHANGE, KENYA

Jamila Abdi, Dr. Robert Mang’ana

Abstract


This study examined the influence of bank restructuring strategies (asset, and capital) on organizational performance of commercial banks listed on NSE, Kenya. The study was grounded on resource based view theory, and financial intermediation theory. The study adopted descriptive survey design and targeted relevant section from each of 12 commercial banks on NSE in Kenya, making a target population of 96 respondents where a census method was used to select all respondents to participate in the study. For pilot testing, all components of the questionnaires were checked and coded to ensure clarity of words and the accuracy of the statements, then pretested in an established commercial bank in Nairobi City, Kenya to ensure content and construct validity, while Cronbach alpha was used to test instrument reliability. All collected data was coded, cleaned, tabulated and analyzed using descriptive and inferential statistics with the aid of SPSS 24. Descriptive analysis such as frequencies, means, were utilized while inferential statistics assessed nature and the strength of the relationships. Analyzed data was presented in tables and graphs. From 96 questionnaires dispatched for data collection, 89 questionnaires were returned completely filled, representing a response rate of 92.7% which is very good for generalizability of the research findings to a wider population. Both descriptive and inferential statistics showed that all conceptualized independent variables had positive significant influence on performance of commercial banks listed on NSE. The study concluded that one, operational restructuring when done prudently can yield a significant increase in the overall performance of commercial banks listed on NSE, two, cautious choice asset restructuring approaches can significantly enhance performance of commercial banks listed on NSE.


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https://doi.org/10.1016/j.ssaho.2020.100101

Received 28 September 2022; Received in revised form 7 October 2022; Accepted 12 October 2022

2590-2911/© 2022 The Authors. Published by Elsevier Ltd.

Social Sciences & Humanities Open 3 (2022) 100101


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