Effect of Supervision and Control Process on Performance of Financial Market Intermediaries in Kenya

Abstract

The purpose of the study was to investigate the effect of supervision and control process on performance of financial intermediaries in Kenya. The study reviewed existing literature related to the study objective. The study adopted a cross sectional approach, with study population being 218 employees in 109 financial market intermediary firms. The study used a census approach. The study employed primary data. Primary data was collected through questionnaire. A pilot study was conducted to measure the research instruments reliability and validity. Descriptive and inferential analysis was conducted to analyze the data while multiple and simple regression analysis were used to measure firms’ performance as influenced by supply chain automation. The data was presented using tables, graphs and charts. The study findings of supervision and control and relationship management have positive and significant association with firm performance. It was established that supervision and control and performance of financial intermediaries were positively and significantly related (r=0.221, p=0.000). Based on the findings the study concluded that supervision and control processes influenced the performance of financial market intermediaries in Kenya. This can be explained by the regression results which showed that the influence was positive and also showed the magnitude by which supervision and control processes influenced the performance of financial market intermediaries. The study recommended that supervision and control systems of the financial intermediaries should be fully automated. This will lead to efficient supervision and control of firm’s operations