https://ajpojournals.org/journals/index.php/AJF/issue/feedAmerican Journal of Finance2024-03-06T01:19:55+03:00Journal Adminjournals@ajpojournals.orgOpen Journal Systems<p>The American Journal of Finance is a respected journal that publishes high-quality research in finance and related fields. It is a platform for scholars, practitioners, and policymakers to share their ideas and insights on the latest issues and challenges in the financial sector. The journal covers a wide range of topics, such as corporate finance, asset pricing, financial markets, banking, risk management, financial regulation, behavioral finance, and more. The journal has a rigorous and relevant peer review process that takes about 2-3 months. The journal has an eminent editorial board that consists of experts and scholars from different countries and institutions. The journal is indexed by several reputable platforms that increase its visibility and accessibility. The journal provides DOI numbers for each article to facilitate citation and tracking. The journal is an open access journal, which means that all articles are free to access online. The journal does not charge any fees for submission, processing, or publication of articles. All authors keep the copyright of their articles and grant the journal a non-exclusive license to publish them.The journal is published monthly by AJPO Journals USA LLC, a leading publisher of academic journals in various fields. </p>https://ajpojournals.org/journals/index.php/AJF/article/view/1812Impact of Macroeconomic Variables on Stock Market Volatility in Kenya2024-03-01T23:34:20+03:00John Mugendiinfo@ajpo.org<p><strong>Purpose:</strong> The aim of the study was to assess the impact of macroeconomic variables on stock market volatility in Kenya.</p> <p><strong>Methodology:</strong> This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.</p> <p><strong>Findings:</strong> The impact of macroeconomic variables on stock market volatility in Kenya reveals several key findings. Firstly, studies suggest that variables such as inflation rate, exchange rate fluctuations, and interest rates significantly influence stock market volatility in the country. Specifically, an increase in inflation tends to amplify stock market volatility, while fluctuations in exchange rates contribute to increased volatility, especially in the short term. Additionally, interest rate movements affect stock market volatility, with lower interest rates generally associated with higher stock market volatility. Furthermore, factors like GDP growth rate and oil price fluctuations also exhibit varying degrees of influence on stock market volatility in Kenya.</p> <p><strong>Implications to Theory, Practice and Policy:</strong> Efficient market hypothesis, behavioral Finance Theory and Asset Pricing Models may be use to anchor future studies on assessing the impact of macroeconomic variables on stock market volatility in Kenya. Investors can benefit from a deeper understanding of how macroeconomic variables impact stock market volatility by incorporating this knowledge into their risk management strategies. Policymakers should consider the implications of macroeconomic policies on stock market volatility when formulating economic strategies.</p>2024-03-01T00:00:00+03:00Copyright (c) 2024 John Mugendihttps://ajpojournals.org/journals/index.php/AJF/article/view/1775The Mediation Effect of Competitive Advantage on Managerial Competencies-Financial Performance Nexus of Microfinance Institutions in Uganda2024-02-17T16:56:47+03:00Bernard Wakabi Muhangi Muhangibmuhangia@gmail.comProfessor BadarAlam Iqbalbadar.iqbal@fulbrightmail.orgDr. Saturninus Kasozi Mulindwasmkasozi@umi.ac.ug<p><strong>Purpose: </strong>This study examined the mediating effect of competitive advantage in the relationship between managerial competencies and financial performance of Microfinance Institutions (MFIs) in Uganda.</p> <p><strong>Materials and Methods: </strong>Adopting a cross-sectional design and a quantitative approach, the study covered 94 Ugandan microfinance institutions, which are members of the Association of Microfinance Institutions in Uganda (AMFIU) in all regions of Uganda. A sample size of 76 MFIs was utilized to collect questionnaire data. The mediating effect of competitive advantage was tested using Hierarchical regression while</p> <p><strong>Findings: </strong>The study established that competitive advantage partially mediates the relationship between managerial competencies and the financial performance of MFIs in Uganda. The study also concluded that MFIs that survive competition are only those that nourish their competitive strategies and refine their strategic direction, thus improving their financial performance.</p> <p><strong>Implications to Theory, Practice and Policy:</strong> The study recommends MFIs design policies aimed at attracting competent managers with the relevant skills, knowledge, and abilities. Besides investment in physical capital, MFIs should devise deliberate competitive strategies aimed at enhancing their ability to develop attributes that allow them to outperform their competitors.</p>2024-02-17T00:00:00+03:00Copyright (c) 2024 Bernard Wakabi Muhangi, Professor BadarAlam Iqbal, Dr. Saturninus Kasozi-Mulindwahttps://ajpojournals.org/journals/index.php/AJF/article/view/1836The Financing Decisions and Financial Performance of Manufacturing Firms Listed at Nairobi Securities Exchange, Kenya2024-03-06T01:19:55+03:00Esther Wanjugu Gitahiwanjugugitahi@gmail.comDr Margaret Kosgeiwanjugugitahi@gmail.com<p><strong>Purpose:</strong> The main aim of the investigation was to ascertain how financing decisions affect the financial success of manufacturing companies listed on Kenya's Nairobi Securities Exchange.</p> <p><strong>Materials and Methods:</strong> This study's methodology was a descriptive research plan. Ten manufacturing companies are listed on the NSE. 10 manufacturing organizations that were listed on the Nairobi Securities Exchange in Kenya as of December 31, 2021, made up the study's population. Because they have regularly been listed at NSE since 2012 without skipping a year, the 10 firms were targeted. The companies that are not listed in any given year between 2012 and 2021 was not taken into account by the study. Therefore, the study involved all 10 manufacturing companies. Since every company was listed throughout the time of this study, none was omitted. The researcher uses a document review checklist during the data collection to gather secondary information for use in compiling and analyzing the financial statements. Panel data made up of time series and cross sections was considered secondary data. The data that was collected was between 2012 and 2021.</p> <p><strong>Findings:</strong> Outcomes depicted that liquidity decision had a satisfactory and important effect on financial success (β= 0.088, p=0.003). Outcomes depicted that dividend decision had a satisfactory and important consequence on financial success (β= 0.073, p=0.032). In addition, outcomes depicted that investment decision had a satisfactory and important consequence on financial success (β= 0.021, p=0.002). A strong dividend policy that may increase manufacturing companies' levels of return on assets and draw in investors should be in place for those listed on the Nairobi Securities Exchange.</p> <p><strong>Implications to Theory, Practice and Policy:</strong> The report suggested that in order to increase their income base, companies listed on the NSE that are in the manufacturing and related sectors should invest in product diversification strategies. Since the financial success of manufacturing enterprises is directly impacted by investment decisions. Subsidies for manufactured goods should be taken into account by the Kenyan government as a policy through the yearly budget proclamations. It is recommended that managers closely monitor the firm's liquidity, take on projects with positive net present values, and generate cash flow to support their investment and operational endeavors.</p>2024-03-05T00:00:00+03:00Copyright (c) 2024 Esther Wanjugu Gitahi, Dr Margaret Kosgeihttps://ajpojournals.org/journals/index.php/AJF/article/view/1804The Interaction Effect of Stakeholder Engagement on Managerial Competencies- Financial Performance Nexus; Empirical Evidence from Microfinance Institutions in Uganda2024-02-28T15:46:59+03:00Bernard Wakabi Muhangibmuhangia@gmail.comProfessor BadarAlam Iqbalbadar.iqbal@fulbrightmail.orgDr. Saturninus Kasozi Mulindwasmkasozi@umi.ac.ug<p><strong>Purpose: </strong>This study examined the moderation effect of stakeholder management on the relationship between managerial competencies and financial performance of MFIs in Uganda.</p> <p><strong>Materials and Methods: </strong>The study used a cross-sectional design, adopting a quantitative approach. This design was preferred because it does not require follow-up on the respondents as would be the case with a longitudinal design. The study used a structured self-administered questionnaire to collect data from the senior managers of 76 MFIs in Uganda. MFIs were selected using stratified simple random sampling while purposive sampling was applied to select senior management. Hierarchical multiple regression analysis using SPSS was employed to test the hypothesis. Hierarchical regression was preferred to other techniques because of its capacity to indicate what happens to the model as different predictor variables are introduced.</p> <p><strong>Findings: </strong>Empirical findings from this study revealed that the financial performance of MFIs in Uganda is explained by managerial competencies and the relationship is moderated by stakeholder management. The results concretize that managerial competencies and stakeholder management fuse to influence financial performance. The study revealed that managerial competencies (<em>β</em>= .65, <em>p</em><.001) and stakeholder management (<em>β</em>=.61, <em>p</em><.001) are significant antecedents, accounting for a substantial 58% of the variance in the financial performance of MFIs (<em>R<sup>2</sup></em>=.58, <em>p</em><.001).</p> <p><strong>Implications to Theory, Practice and Policy: </strong>The present study has confirmed that managerial competencies are a multidimensional predictor comprising of skills, knowledge, and abilities of the management team. It emerged that stakeholder management is a potent predictor with the potential to strengthen the effect of managerial competencies on financial performance. The study addresses mixed findings in the literature on financial performance and confirms upper-echelons and the stakeholder theory.</p>2024-02-28T00:00:00+03:00Copyright (c) 2024 Bernard Wakabi , Professor BadarAlam Iqbal, Dr. Saturninus Kasozi-Mulindwa