Nyangenya Japheth Teya
Department Of Commerce and Economic Studies
Jomo Kenyatta University of Agriculture and Technology,P.O BOX 6200-00200,
Nairobi - Kenya.
Kenneth Lawrence Wanjau
School of Business, Karatina University, P.O Box 1957 10101 Karatina
School of Business,Jomo Kenyatta University of Agriculture and Technology,
P.O BOX 6200-00200,Nairobi - Kenya.
CITATION: Nyangenya J T, Wanjau L K., & Muturi W. (September, 2016), Moderating effect of financial technology on institution innovation and performance of licensed capital market intermediaries in Kenyan securities market: International Journal of Economics and Finance (IJEF), VOLUME 2 (IX), 317-333. ISSN 2105 6008.
The purpose of this study was to determine the moderating effect of financial technological capabilities on institutional innovations and performance of licensed capital market intermediaries in Kenyan securities market. In Kenya capital markets serve as a mechanism for price discovery,offering trading, investment, speculation, hedging, arbitrage opportunities and information dissemination while providing vehicles for raising finances for companies and funding vision 2030.However, there have been no rich literature linking the two and licensed capital market intermediaries have a weak understanding of institutional innovations, financial technological capabilities and its control measures. The need to institutional innovations with performance has become vital for licensed capital market intermediaries striving to achieve superior performance. To better understand this relationship, this paper was guided by exploratory and cross-sectional survey approach design. Using the hierarchical and moderated multiple regression (MMR) analyses, the theoretical models and hypotheses in this paper were tested based on empirical data gathered from 97 licensed and approved capital market intermediaries in Kenyan Securities markets.The results revealed that financial technological capabilities significantly moderated the relationship between institutional innovations and performance of licensed capital market intermediaries in Kenya. This study will enhance the knowledge set of licensed capital market intermediaries in Kenya, creating sustainable business linkages and collaborations with external and multiple entities as well as contributing to the open literature.
Keywords : Institution innovation, Financial Technology, DU Pont,Licensed Capital Market Intermediaries, Securities Market