The Influence of Financial Restructuring on Organizational Performance at Equity Bank Kenya Limited
Year: 2024
Type: article
Abstract: Financial institutions have continued to face performance challenges, including the collapse or liquidation due to inability to achieve the desired outcomes. This study evaluated the influence of financial restructuring on the organizational performance of the banking industry in Kenya using a case of Equity Bank Kenya Limited at Nairobi Headquarters. The research applied agency theory. A causal research design was adopted. The target population for the study was the 87 supervisory middle management, senior management, and executive staff at Equity Bank Kenya Limited headquarters. Primary data was collected by application of a structured questionnaire. Secondary data was obtained from the financial annual reports of Equity Bank. The validity of the instruments for data was assessed by the supervisor and subject experts. The reliability of this study was determined using the Cronbach alpha analysis conducted from pilot study data. The internal accuracy of data instruments using Cronbach’s alpha value. The administration of the questionnaire was done using Google Forms. Data collected was coded and entered into the Statistical Package for Social Sciences to permit statistical analysis. Data analysis applied descriptive statistics including mean, and standard deviation as well as inferential statistics particularly multiple linear regression. The study results revealed that financial restructuring (p = 0.037) has a statistically significant influence on organizational performance of Equity Bank Limited. The study recommends that banks prioritize financial restructuring and align it with long-term objectives to enhance organizational performance. Keywords: Financial Restructuring, Equity Bank, Organizational Performance, Banking Industry.
Authors: Kariuki Margaret Njoki, Njuguna Reuben
Institution: Kenyatta University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4403846492