The study investigated the impact of corporate governance (CG), investment strategy (IS) and macroeconomic variables on the financial performance of pension schemes in Kenya thereby addressing the key research question: What is the effect of CG, IS and macroeconomic variables on the financial performance of pension fundsin Kenya? Qualitative, quantitative and correlationalresearch designs were used to assessthe effect of these factors on financial performance of pension funds. Quantitative data on annual return of pension funds and macroeconomic variables from 2012 to 2020 as well as qualitative data on CG indicators and IS were used in the study. Return on investments proxied pension fund performance. Primary data was collected using survey questionnaires from the pension schemes from both the CG and IS indicators to develop both CG and IS indices. The findings show that CG as well as IS and macroeconomic variables impact differently pension funding. Effect of CG indicators on pension performance was positive and significant. The intervening effect of IS on the link between CG and pension performance was significant while the moderating effect of macroeconomic variables was significant. The individual contribution of both CG indicators and macroeconomic factors on pension performance, nonetheless varied. The main conclusion of the study is that pension fund financial performance is influenced by CG, IS and macroeconomic factors implying that there is need to take into account the impact of these factors in the execution of investment plans of pension funds to ensure generation of adequate funds for retirement benefits
This study was about loan portfolio management and financial performance of SACCOs in Rubirizi. A sample of 110 respondents was obtained using the Census Method, the study used cross sectional research and correlational approaches. Self Administered Questionnaires and an interview guide were used to obtain the data. Frequency distributions, percentages, means, correlation, and regression were used to examine quantitative data and thematic analysis for qualitative data. Inferential analysis results showed;- loan portfolio planning(r = 0.82**, p = 0.000 0.05) had a strong positive significant relationship with financial performance. As a result, it was determined that loan portfolio planning is critical for financial performance. Based on the findings, the study suggested and recommended to the Ministry of Trade, Industries, and Cooperatives and stakeholders in SACCO management to support loan portfolio planning before extending loans to them Key words: Financial Performance, Loan portfolio planning and SACCOs DOI: 10.7176/RJFA/15-2-08 Publication date: February 28 th 2024
This paper focuses on profitability and valuation of firms when the future path of government policy is uncertain. Specifically, the paper examines whether the economic risk caused by gridlock during periods of divided government influences profitability and valuation of firms that operate in the oil and gas sector. Using U.S. publicly traded oil and gas firms from the Compustat database covering the period 1989 to 2016, the results show that firms are profitable when there is a divided government; however, there is no association between divided government and firm valuation. Large firms tend to be profitable during Republican control and small firms are more profitable when there is a divided government. In sum, political institutional factors affect the profitability of firms that operate in the oil and gas sector; however, this relation differs across firm size and industry. Key Words : Political Divide, Profitability, Valuation, Oil and Gas Sector DOI : 10.7176/RJFA/15-5-06 Publication date : May 30th 2024
The COVID-19 pandemic has made all institutions, including universities, experience many changes in their governance and operations. This condition makes implementing risk management very important for every higher education institution. The purpose of this article is to conceptually analyze the importance of risk management for higher education. Higher education is facing unprecedented challenges, which are happening on all sides. Higher education can categorize risks based on academic and non-academic. In addition, it can also categorize risks based on strategic goals and key performance indicators of higher education. The risk analysis results will describe the level of risk (high, medium, or low) for each group. These results can be used for decision-making related to risk mitigation. In addition, institutions can also make it an opportunity. Universities are advised to involve all internal stakeholders in the risk identification and analysis process in stages. The main key that must be considered in maintaining the trust of the most important stakeholders is communication. Keywords: Risk, stakeholders, governance, academic, non-academic. DOI : 10.7176/RJFA/15-5-05 Publication date : May 30th 2024
The aim of the study is to explore the nexus between corporate governance and the corporate sustainability of banks in Ghana and further investigate the moderating role of bank age on the nexus. Primary data was obtained through the administration of questionnaires to senior management personnel of the banks. Covariance Based Structural Equation Model (CB-SEM) was employed to analyse the data using AMOS software. The findings of the study indicate that, corporate governance practices of the banks influence their sustainability initiatives and performance. It also reveals that bank age moderates the relationship between corporate governance and bank sustainability. The study presents significant contribution to theoretical and empirical literature. In addition, it has significant implication for future policies relating to the sector and likely to influence policies which offer young banks the opportunity to be guided by the old banks on their road to achieving sustainability. The focus of the study on banks in Ghana is a limitation of the study. Therefore, it is recommended that, future studies should relate to a broader context such as Sub Sahara Africa, Africa, Asia, Europe among others. Such studies should consider a comparative study for old and young banks to provide outcome to influence policies relating to sustainability and governance. Keywords: Corporate governance, Corporate Sustainability, Bank Age, Banks in Ghana DOI : 10.7176/RJFA/15-5-04 Publication date : May 30th 2024
The earth is the only planet in the universe for human habitats with an ecological harmony of nature. We must protect our planet at any cost for us and the coming generations. Bangladesh is an alarmingly vulnerable country to climate change due to its location and position. Among many more endeavors, green banking can be an example of ejecting low carbon dioxide, supplying green financing, gaining sustainable banking practices, and saving nature. The green banking paradigm is right now passing the growth level in Bangladesh. This research discusses the basic concepts of green banking moves, their current status, and their impact on climate change issues in Bangladesh. In this initiative, we used data from secondary sources, such as journal articles, annual reports of Bangladesh Bank (BB) and other scheduled banks, proceedings, and daily newspapers from 2021 to 2023. The collected dataset is analyzed using MS Excel software, considering its nature. This paper identifies the data regarding green finance, such as investment for ETP, green energy, biogas plants, solar home plants, HHK, green industry, green buildings, production of vermicomposting, and many more. This study also gathered quarterly published data by Bangladesh Bank and compared it with the target set by the controlling regime. This study showed that 23 commercial banks have reached the target of GF set by Bangladesh Bank as GF ≥ 5% of total term loan disbursement. State Bank of India achieved 99.52%, got first position and Pubali Bank PLC achieved 5.80%, got last place considering the target set. On the other hand, 15 commercial banks fulfilled their target of SF compared to total loan disbursement. In this case, the target attainment is SF ≥ 20% of total loan disbursement. Bangladesh Krishi Bank holds the highest position (57.22%) and Community Bank Bangladesh Ltd., (20.10%) got the lowest position. The BB, as a controlling body of all financial institutions, and other banks are on the right track. Almost all commercial banks fulfill their targets concerning green financing, contributing towards a healthy environment, and making the planet green. Key Words: GB= Green Banking, Climate Change, SDGs, GF=Green Financing, HHK=Hybrid Hoffman Kiln Bangladesh Bank, Carbon dioxide, SF=Sustainable Finance. DOI : 10.7176/RJFA/15-5-02 Publication date : May 30th 2024
Making an investment decision involves deciding to take on additional income from an asset or assets in the hopes of earning a profit down the road. The purpose of this study is to present empirical evidence of how behavioral bias affects investors' decision-making while making investments, with the internal locus of control acting as a moderator. The 44,319 participants in this survey are all investors in the Denpasar area. Quota sampling was the procedure used to determine the sample. Using a questionnaire methodology, a survey method is employed to collect data. The information was gathered using a questionnaire methodology in a survey. The model of linear double regression equations used for the data analysis is called Moderated Regression Analysis (MRA), and it examines how moderation variables affect the relationship between independent and dependent variables. The populace was given questionnaires until 396 samples were gathered. The results of this study showed that decision-making about stock investments by investors is significantly impacted negatively by overconfidence bias, representativeness bias, anchoring bias, and herding bias. Additionally, the research shows that while the locus of control might increase the effect of herding on investor investment decisions, it can also lessen the influence of prejudice, representativity, and ancoring bias. Keywords: Overconfidence Bias, Representativeness Bias, Anchoring Bias, Herding Bias, Locus of Control, Investment Decision DOI : 10.7176/RJFA/15-5-01 Publication date : May 30th 2024
This study examined the controversy on the direction of causality/impact between stock markets and industrial sector development of Europe with a view to unearthing some lessons for Nigeria's quest for developing her industrial sector for rapid economic growth. The study employed cross sectional stock exchanges' monthly data of eleven countries in Europe spanning the period January 2015 to November 2022. The variables for the study comprise Industrial output which served as proxy for industrial development (the dependent variable) and the explainable variables which include Market Capitalization, Stock market Index and Volume of Transactions as indices of stock market performance. The econometric estimation tools employed for the Panel data relationship include the pooled regression analytic model with fixed and random effects as well as the Kao Residual Co-integration, the Likelihood Ratio, the Hausman specification and Residual cross section dependence tests. The empirical results of the study demonstrate that the relationship between market capitalization, stock market index and industrial output within the scope this study were mixed with both negative and positive effects whereas in all, there was no significant relationship between volume of transactions and industrial output. It was also found that the Likelihood ratio and Hausman tests support the fixed effect that unobserved/omitted variables are important explanatory variables for each country's industrial development. This means that industrial development of the respective countries studied in Europe depend not only on stock market performance of the countries but also on other discretionary policies adopted by these countries. In addition, the Residual cross section dependence test found a cross-sectional dependence or correlation among the selected countries in the Euro zone. The import of these findings for Nigeria is that current efforts being undertaken by policy makers and the regulatory authorities should be intensified to boost activities in the stock market in Nigeria as this will impact positively on industrial development and the economy at large. We therefore recommend comprehensive policy thrust that incorporates not just capital market reforms but also monetary, fiscal, incomes, industrial, trade and foreign exchange policies all working in tandem to achieve a sustainable growth of the stock market. Keywords: Industrial Output, Market Capitalization, Stock Market index, Pooled Regression, Europe DOI : 10.7176/RJFA/15-5-03 Publication date : May 30th 2024
The study examines variables influencing the quality of village financial reports, namely the quality of human resources, community involvement, accountability, and accessibility of financial information. Specifically, within the context of village governance in the Bengkalis Sub-district, the study seeks to determine how these factors affect the caliber of village financial reports. By exploring the moderating role of human resource quality, the study aims to assess the influence of accessibility, community engagement, and accountability on the quality of village financial reports. The study employed Partial Least Squares Structural Equation Modeling (PLS-SEM) as the research method. Data were collected through surveys administered by the Bengkalis Subdistrict Village Council. The findings revealed that community involvement and information accessibility positively influenced the quality of village financial reports, with the quality of human resources playing a crucial mediating role. The theoretical contributions of these studies center on exploring the intricate dynamics among various factors that influence the quality of financial statements in village governance. On the other hand, methodological contributions arise from the application of advanced statistical techniques to analyze these relationships. Additionally, the comprehensive sampling approach used to collect information adds to the methodological contributions of the studies. These findings emphasize the importance of supporting and encouraging community participation in village financial management, improving the quality of human resources at the village level, and integrating information technology into the preparation and dissemination of village financial reports. This study significantly contributes to advancing the theory and practice of public financial management at the village level. Keywords: Village Fund, Accessibility, Participation, Accountability, Financial Report Quality DOI: 10.7176/RJFA/15-4-01 Publication date: April 30 th 2024
Village Financial, according to Law No. 6 of 2014, are all rights and obligations of the village that can be valued in money as well as all kinds of things related to the implementation of the rights and duties of the village.and village obligations, which include the rights to the land and the natural resources above it, are managed by the village for the common good. Evaluating the financial performance of the village is crucial to understand the extent of the realization and efficiency of the use of village funds. This study aims to evaluate the realization and efficiency of village funds in Jambi Province in 2022. The method used in this research is quantitative analysis with a descriptive approach. The data used in this study comes from the financial reports of villages in Jambi Province. The results of the study indicate that the Pearson Correlation Coefficient (r), which is the analysis of the relationship between Village Fund Allocation in Districts and Cities in Jambi Province with the Total Realization of Infrastructure and Non-Infrastructure Facilities in villages in Districts and Cities in Jambi Province, has a correlation above 0.90. Keywords: Effectiveness, Efficiency, Village Fund Realization. DOI: 10.7176/RJFA/15-4-03 Publication date: April 30 th 2024
Cash flow management is a component of working capital management that aims to establish the financial position of the organization. The primary objective of cash flow management is to balance cash inflows with cash outflows in a matched approach to financing working capital. The study investigated the relationship between cash flow management and the growth of Small and Medium Enterprises (SMEs). The study was conducted in Gulu Municipal in northern Uganda using a cross-sectional survey design. Data were collected from a random sample of 94 businesses stratified as private schools (44), hotels (44), and clinics (6). The study used a quantitative approach, and the categorical data were measured using a five-pointLikert scale. Data analysis was based on the generated descriptive and inferential statistics. The study established that there is a significant and positive relationship between SMEs growth and cash flow management at . The study found that motives for cash holding is the major determinants of SMEs growth.The significant and positive relationship between SMEs growth and cash flow management at means that in making liquidity decision management should attach great importance to the cash component of working capital. A coefficient of determination of , means that about one third of the variation in growth of SMEs is accounted for by proper cash management of organizational resources. SMEs need to focus on cash flow management as a component of liquidity decision taken in their business. Financial institutions that finance gaps in working capital should ascertain clear cash holding strategies of the borrowers. Other researchers could explore the contribution of the components of working capital to the growth of SMEs. This should be in addition to the contribution of investment decision, financing decision, and dividend decision as a totality of best financial management practices in the promotion of growth of SMEs. Keywords: Cash Flow Management, Motives for Cash Holdings, SMEs, Uganda DOI: 10.7176/RJFA/15-2-03 Publication date: January 31 st 2024
Compensation paid to top executive managers is one of the sensitive areas in modern corporate finance. The objective of this paper is to investigate the determinants of the Chief Executive Officer and/or the Chairman of the board of directors’ cash compensation. It tests mainly the linkage between ownership concentration, role duality, financial performance, among other variables, and executives cash compensation for a sample of 8 commercial banks listed on Amman Stock Exchange during the period 2010-2013.By using panel data analysis, I find little evidence that highly concentrated ownership structures reduce Chairmen of the boards, but not CEOs, cash compensations. In addition, financial performance plays a major role in setting the Chairmen of the boards, but not CEOs, pay levels. Moreover, CEOs in larger banks are more compensated than others in smaller ones. Whereas, CEOs in high-risk banks are not provided with higher rewards. More importantly, the analysis fails to link executives cash compensation to role duality, suggesting that there is a small and negligible role for the separation of the positions of CEO and Chairman of the board of directors in determining CEO cash compensation. Overall, the results revealed that the factors influencing CEO cash compensation in banking industry are remarkably different of those influencing the Chairman of the board cash compensation.In summary, agency problem in Jordanian banks may not be that severe. Executives’ compensation contracts and ownership structures are, to some extent, effective mechanisms for alleviating the classical agency problem and aligning the interests of owners and managers. However, Jordanian CEOs are unjustifiably overcompensated as they fail to prove their worth, in light of such lamentable performance of the Jordanian banks, which raises questions about executives’ compensations determining mechanism, and the process of hiring CEOs in the first place. Keywords: Agency theory, Cash compensation, CEO, Ownership structure, Role duality DOI: 10.7176/RJFA/15-2-05 Publication date: January 31 st 2024
Micro, Small, and Medium Enterprises (MSMEs) constitute the primary market share for Bank BRI, underscoring their significance within the company profile. The annual target for micro-businesses aims to fortify and sustain BRI's position as the market leader for micro-businesses in Indonesia. Recognizing the intensifying competition in the micro-business sector, BRI has developed BRISPOT, a digital-based application with a one-stop service concept. This enables Loan Officers to seamlessly conduct credit processes end-to-end, anytime, and anywhere. This research was conducted at the Bank BRI Denpasar Regional Office. The study population consisted of all micromarketers/mantri, totaling 1,550 individuals. Probability sampling techniques, specifically proportionate random sampling, were employed in this research, and a sample size of 205 was determined, aligning with Hair et al.'s guidelines. The data collection method utilized a questionnaire with a 5-point Likert scale. The data analysis technique employed in this research is SEM-PLS (Partial Least Squares). The results of this research indicate that organizational structure, organizational environment, system quality, information quality, service quality, and self-efficacy positively influence user satisfaction. Furthermore, user satisfaction has a positive impact on net benefits. Keywords: User Satisfaction, Net Benefit, HOT-Fit, BRISPOT, Micro Credit DOI: 10.7176/RJFA/15-2-02 Publication date: January 31 st 2024
The performance of a business is closely tied to its success, which is influenced by corporate strategy and goal achievement. Effective management of accounts receivable and proper implementation of working capital investment policy are the critical factor in this success, as it directly impacts objectives twin of the firms. However, previous research has primarily focused on the relationship between accounts receivable and firm performance in developed economies, neglecting developing economies. To address this gap, the study examined how accounts receivable management and working capital investment policy affect the performance of 30 Tanzanian firms from 2011 to 2022, with a focus on liquidity and profitability. We conducted panel data analysis, considering variables such as average collection period, working capital investment policy, firm size, debt ratio, and business growth.The findings indicate a significant negative relationship between the independent variable (average collection period) and the control variable (debt ratio) with firm profitability. Conversely, there is a significant positive relationship between the independent variable (working capital investment policy) and firm profitability.Furthermore, the independent variables (average collection period and working capital investment policy) show a significant positive relationship with firm liquidity, while the control variables (firm size and business growth) also exhibit a significant positive relationship. However, the control variable (debt ratio) demonstrates a significant negative relationship with liquidity.In terms of specific sectors, the study results reveal conflicting findings, with inconsistent significant results observed within individual sectors. Therefore, financial managers should consider the levels of accounts receivable and industry-specific dynamics when making decisions regarding accounts receivable and working capital investment policy to achieve optimal outcomes. Keywords: Accounts Receivable, Working Capital Investment Policy, Firms, Performance, Profitability, Liquidity. DOI: 10.7176/RJFA/15-3-03 Publication date: March 31 st 2024
Corporate governance and stakeholder engagement are vital in enhancing organizational resilience. Nevertheless, very little has been done to evaluate how they impact the organizational resilience of Kuwaiti Islamic Financial Institutions (KIFIs). Using mixed research method, the current study evaluated how the two variables (corporate governance and stakeholder engagement) impacted the resilience of KIFIs against adverse events. A sample of 120 research participants was recruited randomly from KIFIs' employees to participate in the quantitative part of the study. Thirty-five (35) research participants from the 120 research participants were also recruited randomly to participate in the qualitative part of the study. A positive correlation that was statistically significant (r = 0.591, p < 0.5) was identified between corporate governance and organizational resilience of Kuwaiti IFIs. Similarly, a statistically significant positive correlation (r = 0.589, p < 0.5) was identified between stakeholder engagement and organizational resilience of Kuwaiti IFIs. A unit increase in corporate governance variable was found to increase the resilience of Kuwaiti IFIs by 0.42 units whereas a unit increase in stakeholder engagement increased it by 0.367 units. The findings were supported by the qualitative findings that highlighted the notable impact that corporate governance and stakeholder engagement had on organizational resilience of Kuwaiti IFIs. The study concluded that both corporate governance and stakeholder engagement had positive impact organizational resilience of Kuwaiti IFIs. Keywords: Corporate governance, Stakeholder engagement, Organizational resilience, Kuwait, IFIs. DOI: 10.7176/RJFA/15-3-05 Publication date: March 31 st 2024
Purpose: The purpose of this study is to analyze the state of IFRS, especially IFRS 41 among horse breeders in the GCC region regarding awareness, adoption intention, and the challenges faced during IFRS adoption. Design/Methodology/Approach: The study population of this study included individuals associated with horse farms and horse industry selected through a convenient sampling method. A semi-structured questionnaire was developed and used for data collection. The relationship between IFRS awareness, influencing factors, barriers to adoption, and intent to adopt IFRS was examined using structural equation modeling (SEM) based on the theoretical frameworks of Theory of Planned Behavior (TPB) and the Technology Acceptance Model (TAM). Findings: The study findings revealed a low level of awareness and adoption prevalent among horse breeders. Factors that influence the intentions to adopt IFRS were identified. Practical implications: Policy makers, organizations' management, and auditors are encouraged to identify ways to improve the awareness and adoption of IFRS 41 involving biological assets. Originality/value: This study is the first of its kind in which the perception of horse breeders at the ground level about IFRS adoption has been explored. Keywords: Biological assets, Arabian horses, IFRS, Adoption of IFRS41, Financial reporting Paper type: Research paper DOI: 10.7176/RJFA/15-3-02 Publication date: March 31 st 2024
The dwindling performance of listed deposit money banks caused by poor employee morale, lack of motivation and inadequate management of human resource has resulted to loss of key talent personnel in the banking sector has become worrisome to shareholders, regulators, academia and analysts. In lieu of this, the study examined the effect of human resource accounting on financial performance of listed deposit money banks in Nigeria. This study adopted ex-post facto research design. The study population is 13 listed deposit money banks on Nigeria Exchange Group. Census sampling technique was used to select the entire 13 listed deposit money banks form the sample size of the study. Data were collected from secondary source using annual reports of the selected firms from Factbooks published by the Nigerian Exchange Group from 2013 to 2022. Data collected include; employee remuneration cost, employee health and safety cost, employee retirement benefits and return on capital employed. The data were analysed using descriptive statistics and ordinary least square regression analysis.The result showed that employee remuneration cost to revenue has a negative and significant effect on returns on capital employed of DMBs in Nigeria. Also, employee and safety cost has a positive and significant effect on returns on capital employed (ROCE) of listed deposit money banks in Nigeria. Employee retirement benefit has a negative and significant effect on returns on capital employed (ROCE) of deposit money banks in Nigeria.The study concluded that human resources have negative and significance effect on the financial performance of listed deposit money banks in Nigeria. The study therefore recommended that management of deposit money banks and labour unions should ensure there is appropriate accountable structure to improve the commitment of the companies to human resource management and the ways of boosting the financial performance of firms. Also, management of deposit money banks should substantially invest in building the capacities and abilities of their employee through training, seminar, education as this will have a positive impact of the financial performance of the firm and improve their performance. Management should ensure that the cost committed to employee emoluments and welfare is not above what the company revenue could absorb conveniently without negatively affecting the investors returns. Keywords: employee remuneration cost, employee and safety cost, employee retirement benefit and returns on capital employed. DOI: 10.7176/RJFA/15-3-04 Publication date: March 31 st 2024
The study examined the effect of capital adequacy on financial performance of microfinance banks in Kenya. Capital buffer theory and stakeholder theory was utilized. Causal research design was adopted and fourteen microfinance banks were targeted. Thirteen microfinance banks were selected based on purposive sampling technique which was informed by the time scope of the study which is 2013 to 2019. Secondary panel data was used and consequently, panel regression analysis was applied. The study concluded that core capital to total assets ratio is a significant predictor of financial performance of microfinance banks in Kenya. It was also concluded that core capital to total deposits ratio is important in determining the financial performance of microfinance banks in Kenya. The study recommends that microfinance banks should strive towards holding capital buffer with regards to core capital in relation to total assets upon reaching the minimum requirements. This should however be done in a prudent manner where financial intermediation role is not distorted. A joint core capital and total deposits objective should be put in place by the management of microfinance banks. The study recommends that the capital adequacy guidelines by the Central Bank of Kenya should be in view of underlying banking conditions. Capital regulatory and supervisory initiative by the apex bank should balance between protecting depositors and ensuring stable financial performance. Keywords: Capital Adequacy, Core Capital to Total Assets Ratio, Core Capital to Total Deposits Ratio, Financial Performance and Microfinance Banks DOI: 10.7176/RJFA/15-4-05 Publication date: April 30 th 2024
This study aims to assess the impact of institutional ownership, managerial ownership, board size, and audit committee size on earnings management, with a focus on the intervening variable of financial distress. Employing a causality research design, secondary data were derived from the annual financial reports of State-Owned Enterprises listed on the Indonesia Stock Exchange for the period 2017–2021, encompassing 20 companies. A purposive sampling technique was applied to select a sample of 11 companies, and data processing and analysis employed path analysis and t-tests through the IBM SPSS 25 analysis tool. The findings reveal that managerial ownership exerts a negative influence on financial distress, while audit committee size exhibits a positive impacton financial distress. In contrast, institutional ownership and board size do not significantly affect financial distress. Financial distress, in turn, influences earnings management and serves as a mediator in the relationship between audit committee size and earnings management. However, financial distress does not act as a mediator for the effects of institutional ownership, managerial ownership, and board size on earnings management. The study underscores that the implementation of good corporate governance practices within companies can effectively mitigate earnings management practices and safeguard against the onset of financial distress.
Pension schemes form a significant part of the global investment portfolio. In Kenya, they hold over 13% of the country’s GDP (OECD, 2018). Their importance is underscored by the fact that they contribute significantly to growth and development of world economies (Kakwani, Davis, 2005; Heijdra, Ligthart & Jency, 2006). Their financial performance is critical to the provision of retirement benefits. Khan, Nouman & Imran (2015) observed that the financial performance indicates measures to which economic goals of an organisation has been accomplished over particular time period. Pension schemes however, face numerous challenges that can render the generation of retirement benefits inadequate.A number of studies have been undertaken to evaluate the impact of factors that influence performance of pension funds resulting in mixed and sometimes inconclusive findings. This study sought to assess the effect of corporate governance, investment strategy, interest rate, inflation rate, exchange rate and GDP growth rate on performance of pension funds in Kenya. The study was done using annual data on pension funds and economic indicators spanning the period 1997 to 2018. In addition, it used questionnaires to gather data on corporate governance and investment strategy indices.Quantitative and correlational research design using Linear regression model was used to assess the effect of corporate governance, investment strategy, interest rate, inflation rates, GDP growth rates and exchange rate on pension performance. The study findings show that these factors had significant impact on pension funding. They however, varied on their individual contribution to the prediction of funding level of each pension fund.The study concludes that pension fund management and policy makers should take into consideration the effects of macroeconomic factors, corporate governance and investment strategy in decision making on investment plans to ensure generation of adequate funds to fulfill their key objective of providing retirement benefits to the members.
