| dc.description.abstract | The aim of this study is to investigate the effects of capital adequacy, liquidity, asset quality and operational cost efficiency ratios on banks’ profitability with size as a moderating factor. The analysis of these ratios makes it possible to observe the behaviour of the banks in terms of risk and performance during the period under study. The empirical analysis relates to a sample of Eleven listed Kenyan banks observed over the period between 2011-2020. The purpose of this research was to investigate how the size of a bank influenced the aspects that contributed to the financial performance of listed commercial banks in Kenya. The research was planned with a descriptive research design in mind to accomplish the goals set forth for this study. The total customer base of Kenya's 11 commercial banks listed on stock exchange served as the study's primary focus group. Both descriptive and correlation statistical methods were used to analyse the data. Throughout the research, tests for normality, multicollinearity, autocorrelation, and heteroscedasticity were carried out. In order to conduct an empirical investigation on the moderating influence that bank size has on the financial performance of listed financial institutions, a panel model was used. The findings showed that the quality of commercial banks' assets considerably impacted the banks' overall performance. The financial performance of Kenya's listed commercial banks was significantly impacted negatively by liquidity's presence in the market. There is a positive and substantial correlation between commercial banks' levels of capital adequacy and their levels of financial performance. It was shown that the operational cost efficiency of commercial banks in Kenya had a negative and negligible association with their financial performance. It was found that the size of the bank had a moderating impact that was both positive and significant on the parameters that influence the financial performance of listed commercial banks in Kenya. According to the findings of the research, it is essential to keep track of the aspects that influence the financial performance of commercial banks that are publicly traded. These criteria include asset quality, liquidity, capital sufficiency, and operational cost efficiency. | en_US |
