Impact of firm-level factors on profitability of companies in Kenya.
This research evaluates the impact of finn-level factors on the performance of companies. These finn-level factors are examined as a set of determinants within business that explain profitability. The study thus adopts a quantitative approach based on a longitudinal study of publicly quoted companies in Kenya within each industry, for a period from 2004 to 2014, to determine how firm-level factors such as size, diversification, leverage, expense and growth impact a company's profitability, using ROA as a profitability measure . The study finds that leverage, firm size and expense ratios had the most significant impact in explaining profitability of listed Kenyan companies, their changes also contributed significantly to firm profitability changes across industries. Also, most of firm heterogeneity was found to exist among firms in the manufacturing and banking industries .