INFLUENCE OF FINANCING ON FINANCIAL PERFORMANCE OF AGRICULTURAL FIRMS LISTED IN NAIROBI SECURITIES EXCHANGE
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Abstract
The success of any organization depends on sound financial management. Financial managers execute financial management practices that determine the success or failure of an organization. The objective of the study is to determine the influence of financing on the financial performance of agricultural firms listed on Nairobi Securities Exchange. A descriptive survey research design was applied. A Census of all the 6 companies listed at Nairobi Securities Exchange as at July 2014 to July 2019 constituted the study population. The study employed secondary data extracted from audited financial statements and individual companies annual report for the five year period covering July 2014 to July 2019. Record survey sheet was used when collecting data for independent and dependent variables. Data collected was analyzed by using descriptive and inferential statistics. Under descriptive statistics the study considered; Mean, Minimum, Maximum and Standard deviation. For inferential statistics the study considered correlation and multiple regression. Statistical Package of Social Science (SPSS) software program was applied in the analysis of the study with respect to the objectives of the study. The study found out that financing has a positive significant effect on financial performance. The results showed financing practices has a positive relationship with the Return on Investment (ROA)of the firms under study. The positive values indicated the direction of relationship between predictor and Return on Investment. The study reccommened that the management team of agricultural firms listed at the NSE should put more emphasis on finacing practices so as to improve the financial performance of agricultural firms listed on NSE.
CITATION: Gerio, P. J., Ondiek, B. A., & Yugi Tibbs, C. Y. (2020). Influence of financing on financial performance of agricultural firms listed in Nairobi Securities Exchange. Reviewed Journal of Financial Management, 2 (1), 1 - 9
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