Effect of Internal Controls on the Financial Performance of County Referral Hospitals in Kenya

Effect of Internal Controls on the Financial Performance of County Referral Hospitals in Kenya

Julius N. Menge

Contact

Soi Patricia Chepkirui

Contact

Dr. Josephat Oluoch

Contact

Kisii University

Effect of Internal Controls on the Financial Performance of County Referral Hospitals in Kenya

Article Fingerprint

ReserarchID

C: FINANCE5F36Y

Effect of Internal Controls on the Financial Performance of County Referral Hospitals in Kenya Banner

AI TAKEAWAY

Connecting with the Eternal Ground

Abstract

Internal Control Systems play an important role in every organization as it assists in realization of their financial performance goals. Most public institutions in Kenya have registered declining performance in recent years due to weakened internal control systems. Researches done relating to internal control systems and financial performance do not show directly the effect of corporate governance and regulatory systems on financial performance. The general objective of this study was to determine the effect of internal controls on the financial performance of county referral hospitals in Kenya. The specific objectives of the study were to determine the effect of physical controls on the financial performance of county referral hospitals in Kenya, to establish the effect of internal audit controls on the financial performance of county referral hospitals in Kenya, to assess the effect of corporate governance controls on the financial performance of county referral hospitals in Kenya and to determine the effect of regulatory controls on the financial performance of county referral hospitals in Kenya. The study used a descriptive correlational research design approach. The target population was 47 county referral hospitals in Kenya. Census was used to select all the 47 county referral hospitals in Kenya and purposive sampling was used to select the hospital accountant in each of the hospitals to make a sample size of 47 respondents.

References

53 Cites in Article

Reference Format

& Abu-Musa,A (2010). Investigating adequacy of security controls in Saudi Banking sector, An empirical study.
Stephen Aikins (2011). An Examination of Government Internal Audits’ Role in Improving Financial Performance.
Amer Al-Roubaie,Adel M. Sarea (2010). Green Investment and Sustainable Development: The Case of Islamic Finance.
Jennifer Altamuro,Anne Beatty (2010). How does internal control regulation affect financial reporting?.
Kyampeire Scovia (2009). Internal Control and Performance of Commercial Banks in Kampala, Uganda: A Case Study of UBA Bank, Kansanga-Kampala, Uganda.
H Ashbaugh-Skaife,D Collins,W Kinney,R Lafond (2008). The Effect of SOX Internal Control Deficiencies and their Remediation and Accrual Quality.
Roberta Barra (2010). The Impact of Internal Controls and Penalties on Fraud.
Mark Beasley,Joseph Carcello,Dana Hermanson,Paul Lapides (2010). Fraudulent Financial Reporting: Consideration of Industry Traits and Corporate Governance Mechanisms.
Anthony Bowrin (2011). Internal control in Trinidad and Tobago religious organizations.
Scott Bronson,Joseph Carcello,K Raghunandan (2010). Firm Characteristics and Voluntary Management Reports on Internal Control.
A Chambers (2010). Tolley's Internal Auditor's Handbook.
J Cieslewicz (2012). The Investigative Process.
D Cooper,P Schindler (2013). Business Research Methods.
Yunda Heningtyas,Leila Fauziah,Akmal Junaidi (2013). AUDIT TEKNOLOGI INFORMASI PADA PT XYZ MENGGUNAKAN FRAMEWORK COMMITTEE OF SPONSORING ORGANIZATIONS OF THE TREADWAY COMMISSION (COSO).
J Creswell (2012). Research Design: Qualitative, Quantitative and Mixed Approaches.
Claire Crutchley,Marlin Jensen,Beverly Marshall (2010). Climate for Scandal: Corporate Environments that Contribute to Accounting Fraud.
Jeffrey Doyle,Weili Ge,Sarah Mcvay (2010). Determinants of Weaknesses in Internal Control over Financial Reporting and the Implications for Earnings Quality.
I Etuk (2011). Evaluation of Internal Control System of Banks in Nigeria.
Azeez Aminat,Ajayi Ezekiel,Dada Obafemi (2012). The Impact of Internal Control Mechanisms on Fraud Detection and Prevention in Nigeria Deposit Money Banks.
W Fadzilah,Z Mohamed,M Mat Zain,N Subramaniam,W Yusoff (2010). Internal audit attributes and external audit's reliance on internal audit: implications for audit fees.
K Jaya,H Mohd,A Azwadi (2012). Computer Fraud and Countermeasures.
Michael Jensen (2013). The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems.
Kevan Jensen (2010). A basic study of agency-cost source and municipal use of internal versus external control.
Michael Jones (2010). Internal control, accountability and corporate governance.
C Jubb (2010). IV Auditing In A Changing Environment.
N Jussi,S Petri (2010). Does Agency Theory Provide a General Framework for Audit Pricing.
Beverly Agesa,C Onyango,V Kathumo,R Onwonga,G Karuku (2011). Climate Change Effects on Crop Production in Kenya: Farmer Perceptions and Adaptation Strategies.
D Kantarelis (2010). Firm stability and system stability: the regulatory delusion.
C Kantzos,A Chondraki,T Karagiorgos,G Drogalas,Gotzamanis (2009). The Contribution of Internal Auditing to Management.
Will Kenyon,Patricia Tilton (2010). Potential Red Flags and Fraud Detection Techniques.
C Magara (2013). Internal Controls and Financial Performance of Deposit Taking Savings and Credit Co-Operative Societies in Nairobi City County, Kenya.
Pius Ssuuna Mawanda (2010). Effects of internal control systems on financial performance in an institution of higher learning in Uganda; case study: Uganda martyrs University.
Safari Agure,Wanja Tenamburgen,Lillian Muiruri,Erastus Muniu (2011). Factors Associated with Evidence-Based Decision-Making Among Specialized Nurses Working in Selected Health Facilities in Nairobi, Kenya.
O Mugenda,A Mugenda (2013). Research Methods: Quantitative and Qualitative Approaches.
A Muio (2012). The Impact Of Internal Control Systems On The Financial Performance Of Private Hospitals In Nairobi.
Philip Mwachaka,Peter Gichangi,Adel Abdelmalek,Paul Odula,Julius Ogeng’o (2014). Effect of Maternal Folate Use on Offsprings' Cerebellar Morphometric Parameters: An Experimental Study in A Rat Model.
Simion Biwott (2011). Antecedents of Dividend Payout Among Listed Non-Financial Companies listed in Nairobi Securities Exchanges, Kenya.
N Njenga,Osiemo (2013). Effect of fraud risk detection through internal control systems on organization performance: A case of deposit-taking microfinance institutions in Kenya.
R Njui (2012). Internal Audit in The Public Sector in Kosovo: Promoting Good Governance and Improving Performance.
Alimi Olatunji S,Balogun Babatunde (2010). Teachers’ Attributes as Correlates of Students’ Academic Performance in Geography in the Secondary Schools in Ondo State, Nigeria.
C Olumbe (2012). Mediating Effect of Service Quality on the Relationship Between Customer Relationship Management and Satisfaction of Commercial Banks’ Account Holders In Nairobi City County, Kenya.
Serpil Elmaci,Sercan Bayendur,Abuzer Acar (2012). Effectiveness of Hypochlorous Acid in Cats with Bacterial Cystitis.
B Peterson,P Zikmund (2011). Ten Truths You Need to Know About Fraud.
A Reffett (2011). Can Identifying and Investigating Fraud Risks Increase Auditors' Liability?.
Z Rezaee (2012). Financial Statement Fraud.
Tommie Singleton,Aaron Singleton (2010). Fraud Auditing and Forensic Accounting.
W Stratton (2012). Internal Control and Accounting Systems: The Reliability Approach to Internal Control Evaluation.
K Theofanis,G Drogalas,N Giovanis (2011). Evaluation of the Effectiveness of Internal Audit in Greek Hotel Business.
K Thomas (2012). Toward a stakeholder theory of the firm.
S Tunji (2013). Effective Internal Controls System as Antidote for Distress in the Banking Industry in Nigeria.
Stella Ndagire,Parita Shah,Juliet Kamau,Linda Obiero,Priscila Wainaina,Peter Minang,Jane Mutune (2011). Comparison of Woody Plant Species Diversity in Agroforestry Systems: Insights from Isingiro District, Uganda.
Donald Indiya,Oloo Otieno,Odondo Alphonce,Gulali Donald,Odayo Frankline (2010). Effect of Cash Transfers on Household Consumption amongst the Vulnerable Population in Awendo Sub-County.
Wee,B Goh (2011). Audit committees, board of directors, and remediation of material weaknesses in internal control.

Download References

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Julius N. Menge. 2021. \u201cEffect of Internal Controls on the Financial Performance of County Referral Hospitals in Kenya\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 21 (GJMBR Volume 21 Issue C3).

More Citation Formats

Select Citation Style:

Download Citation

GJMBR Volume 21 Issue C3

Explore Journals Explore Volume Read This Issue

Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

Not Found

Classification

GJMBR-C Classification JEL Code: G00

Submission ReceivedJune 13, 2021
Peer Review Double Blind
Handling Editor
Accepted June 30, 2021
Published July 15, 2021

Version of record

v1.2

Issue date

July 26, 2021

Language

Experiance in AR

Explore published articles in an immersive Augmented Reality environment. Our platform converts research papers into interactive 3D books, allowing readers to view and interact with content using AR and VR compatible devices.

View in VR

Read in 3D

Your published article is automatically converted into a realistic 3D book. Flip through pages and read research papers in a more engaging and interactive format.

View in 3D

Article Matrices

Total Views: 1994

Total Downloads: 956

2026 Trends

Our website is actively being updated, and changes may occur frequently. Please clear your browser cache if needed. For feedback or error reporting, please email [email protected]