Abstract:
This paper sought to examine the effects of training on corporate financial
performance of commercial banks. The paper was informed by the Resource-Based
Theory, Human Capital Theory and Agency theory. Explanatory research design
was adopted. The target population was 869 Employees from 42 commercial banks
operating in Kenya according to the CBK supervisory report in 2014. 267employees
were selected using Simple random sampling method. Structured questionnaire was
used to collect data. Cronbach alpha was used to test Reliability, while factor
analysis was used to test validity. Both descriptive and inferential statistics were
used to analyze data. Multiple regressions was used to test the study hypotheses.
The study findings showed that training of employees has an effect on the
performance of commercial banks in Kenya (β2 = 0.244, p<0.05).Financial
incentives significantly moderate the relationship between job delegation and
financial performance (β= -0.83; p< 0.05). Thus, the study infers that training plays
a major role in explaining the corporate financial performance in banks. The
findings of this study will be of great benefit to bank management and other
stakeholders including the customers, government.
