The Effects of financial literacy on the performance of Agro processing companies in Nairobi County, Kenya
Date
2023
Authors
Mwirichia, D. N.
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Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Globally, financial literacy has gained attention in the business industry due to its significant impact on the sustainability of a business. This study sought to assess the effects of financial literacy on the performance of Agro processing companies in Nairobi County. The specific objectives of the study were: to determine the effects of financial budgeting literacy on the performance of Agro processing companies in Nairobi County; to establish the effects of financial risk management literacy on the performance of the Agro processing firms and to determine the effects of debt management literacy on the performance of Agro processing firms in Nairobi County. The study was anchored on financial literacy theory and used a descriptive correlational research design. The study target population comprised of all the 112 Agro processing companies in Nairobi County with the target respondents being the financial officers, chief accountants and other senior individuals in the firms’ finance and accounting departments. The study used census survey approach to obtain information from the 112 Agro processing companies in Nairobi County. Data was collected using questionnaires which were online administered using Google Docs. Gathered data was cleaned and then analyzed qualitatively and quantitatively. Qualitative data was analyzed thematically while quantitative data was analyzed by the aid of statistical software SPSS version 24. The study found that is a significant positive relationship between financial budgeting literacy, financial risk management literacy and debt management literacy as evidenced by the positive correlation. Further the model of the study concluded that financial budgeting literacy has a statistically significant impact on performance of Agro processing companies. The study recommends that Agro processing companies should move with speed in enhancing their staff members’ knowledge on emerging and disruptive financial concepts in relation to financial budgeting in order to maintain steady financial growth
Description
Full - text thesis
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Citation
Mwirichia, D. N. (2023). The Effects of financial literacy on the performance of Agro processing companies in Nairobi County, Kenya [Strathmore University]. http://hdl.handle.net/11071/15408