Impact of compensation structure on financial performance of firms in telecommunication industry in Kenya

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dc.contributor.authorNsungu, B. L. L.
dc.date.accessioned2026-01-20T10:21:19Z
dc.date.available2026-01-20T10:21:19Z
dc.date.issued2022
dc.descriptionFull - text undergraduate research project
dc.description.abstractIn recent years, the question of manager compensation has become essential to the growth and achievement of an organization's goals and objectives. The research study aimed to determine whether there was a relationship between the compensation structure and the financial performance of firms operating in the telecommunication in Kenya. Specifically, the study aimed to determine whether there was a relationship between change, nature and level of compensation and the financial statement with an emphasis on the return on asset. The study used a descriptive research survey as its method. For the research study, a sample of 260 managers representing 34.7% of a total population of750 from which 109 managers responded to the questionnaires. The study's data was mostly be gathered through questionnaire. The variables were analyzed using descriptive statistics and analytical approaches utilizing the Statistical Program for Social Sciences (SPSS), Inferential statistics, notably correlation matrix and multiple regression analysis, were the most employed statistical instruments for the research analysis. For the study, the researcher will use a survey method. For presenting and summarizing data, the study used descriptive statistics. Tables and figures were used to present the findings, and relevant recommendations would be made; the following findings were discovered, the regression coefficient for change in compensation is .620, which means that for every unit increase in change in pay, financial performance rises by .620 units. Furthermore, t=3.715,p-value=O.OO was reported for compensation change, indicating that there is a link between compensation changes and asset-financial performance, The regression coefficient for level of compensation was .113, meaning that for every unit rise in level of pay, the return on asset-financial performance increased by .113 units, indicating a small relationship between the level of compensation and financial performance and the nature of compensation has a regression coefficient of .001, meaning that for every unit increase in compensation, financial performance increases by .001 units. The nature of compensation reported t==.009, pvalue =.993, indicating that the nature of compensation and financial performance-ROA are not correlated. the researcher concluded that change in compensation especially in the salary had a great impact on the financial performance-return on asset, the level of compensation has a small impact on the financial performance-return on asset of firms in the telecommunication industry and that the form of remuneration used by the targeted organizations has an impact on the return on assets since it plays a significant role in motivating managers and enhancing their productivity leading to an increase in the financial performance. Companies in the telecommunications industry should invest more in their compensation structures, such as stock options or raising the rate at which bonuses are distributed. To ensure fair and effective management decisions, individual manager performance assessment processes, as well as the firm, must be enhanced.
dc.identifier.citationNsungu, B. L. L. (2022). Impact of compensation structure on financial performance of firms in telecommunication industry in Kenya [Strathmore University]. http://hdl.handle.net/11071/16030
dc.identifier.urihttp://hdl.handle.net/11071/16030
dc.language.isoen
dc.publisherStrathmore University
dc.titleImpact of compensation structure on financial performance of firms in telecommunication industry in Kenya
dc.typeThesis
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