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Effect of Financial Risk on the Overall Value of a Multinational Company: A Case of Kenya Commercial Bank

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dc.contributor.author Ally, Nazian Adam
dc.date.accessioned 2018-10-11T12:27:12Z
dc.date.available 2018-10-11T12:27:12Z
dc.date.issued 2018
dc.identifier.uri http://erepo.usiu.ac.ke/11732/4030
dc.description A Research Project Report Submitted to the Chandaria School of Business in Partial Fulfilment of the Requirement for the Degree of Masters in Business Administration (MBA) en_US
dc.description.abstract The purpose of this study was to determine the effect of financial risk on the overall value of the firm using the Kenya Commercial Bank as a case study. The study’s objectivies were to determine the effect of long term loans, credit risk and risk weighting on the overall value of the Kenya Commercial Bank. A descriptive research was applied with secondary data obtained from the audited financial stataments from the banks being the main source of data. Kenya Commercial Bank was the main firm of focus and 6 other banks were used for comparison and for variation purposes. The data obtained for the 7 banks was for the years 2015 and 2016. The data was analyzed using descriptive analyses while regression and correlation analyses were used to draw statistical inferences. The findings show that long term loans have a strong positive correlation with the overall value of the firm. This means that an increase or decrease on long term loan that a bank has would directly affect the firm’s overall value. Further findings indicate that default rates have a positive correlation with the overall value of the firm. This means that there is a significant relationship between default rates and the overall value of the firm. The increase in default rates between the years 2015 and 2016 led to an even stronger positive correlation between default rates and overall value of the firm. The findings on the last research objective revealed that there is no significant relationship between risk weighting and the overall value of the firm. Meaning that, an increase or decrease of the capital adequacy ration has no significant impact on the overall value of the firm. The study then concludes that the value of the firm is affected by the long term loans and the default rates. Risk weighting has no significant impact on the overall value of the firm based on the research done. It is therefore recommended that further should be carried out in different industries to establish and generalize the impact of financial risk on the value of a multinational. en_US
dc.language.iso en en_US
dc.publisher United States International University - Africa en_US
dc.subject Financial Risk en_US
dc.subject Overall Value en_US
dc.subject Multinational Company en_US
dc.subject Kenya Commercial Bank en_US
dc.title Effect of Financial Risk on the Overall Value of a Multinational Company: A Case of Kenya Commercial Bank en_US
dc.type Thesis en_US


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