Effect of firm-specific factors on the financial performance of food and beverages manufacturing firms in Kenya
Date
2023
Authors
Mokaya, D. O.
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Assessments and projections of the growth of the Kenyan economy are founded on the increases on the contribution of the manufacturing sector to the economy. The performance of this sector has been overtaken by the novel telecommunications and real estate sectors on the contribution to GDP. The Food & Beverages Manufacturing sector accounts for a majority 22% share of the Kenyan manufacturing sector, thus, the most sources of livelihood to workers in the manufacturing industry. It is for this reason that this research embarked on a quest to determine the factors within the control of these firms that affect their financial performance. The success of this sector has a larger effect on the overall performance the Kenyan Manufacturing sector owing to its sheer contribution to the industry. This study assessed the effect of the: size, age, leverage, and liquidity of a firm on its financial performance. This study employed descriptive correlational research design on data from 2009 -2018 of 75 Food and Beverages firms in Kenya. The data collected from this study was analysed through a panel regression model to test the influence of the variables in this study on the financial performance of Food and Beverages manufacturing firms. The study found positive influence on financial performance by leverage being statistically significant. The study recommends strategies to increase cash reserves through retaining earnings, issuing equity, or selling non-core assets, reducing debt by paying off loans or refinancing them at a lower interest rate.
Description
Full- text thesis
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Citation
Mokaya, D. O. (2023). Effect of firm-specific factors on the financial performance of food and beverages manufacturing firms in Kenya [Strathmore University]. http://hdl.handle.net/11071/13392